Matthews v. Matthews, 0678-97-4

• Decision Date: 24 February 1998
• Docket Number: No. 0678-97-4,0678-97-4
• Citation: 26 Va.App. 638,496 S.E.2d 126
• Parties: Peter Felix MATTHEWS v. Suzann Gail Wilson MATTHEWS. Record
• Court: Virginia Court of Appeals

Page 126

496 S.E.2d 126

26 Va.App. 638

Peter Felix MATTHEWS v. Suzann Gail Wilson MATTHEWS.

Record No. 0678-97-4.

Court of Appeals of Virginia Alexandria.

Feb. 24, 1998.

Robert E. Shoun (Peter M. Fitzner; Shoun & Bach, P.C., on briefs), Fairfax, for appellant.

Dexter S. Odin (J. Patrick McConnell; Elizabeth L. Salans; Odin, Feldman & Pittleman, P.C., on brief), Fairfax, for appellee.

Present: FITZPATRICK, C.J., and ANNUNZIATA and BUMGARDNER, JJ.

ANNUNZIATA, Judge.

Peter Felix Matthews (husband) appeals the order of the trial court determining the equitable distribution award in his divorce from Suzann Gail Wilson Matthews (wife). Husband contends the trial court erred in failing to give proper weight to husband's contributions to the marriage, in relying on improper factors, and in failing to give weight to wife's unilateral decision to end the marriage when determining the equitable distribution award. Wife contends on cross-appeal that the trial court erred in awarding husband most of the assets acquired after the date of separation. We find no error and affirm.

Husband became interested in commodities futures trading in 1972. At the time, husband was studying statistics and completed his Ph.D. course work in 1974. The parties met in February 1975, and were married later that year. At the time of the marriage, neither party was employed; the parties had a few assets but, also had substantial debts.

At the time of the marriage, husband had begun trading in commodities futures but experienced gains and losses which maintained the parties' trading account at roughly $5,000. The pattern of gains and losses continued through 1979, although by 1979 the parties were losing and gaining hundreds of thousands of dollars.

In 1980, the parties formed Quantec, Inc. Wife handled the incorporation of Quantec, performed research for the company, and owned one-half of the stock. Quantec performed government subcontracting work but did not engage in commodities trading or giving trading advice. The parties continued to trade commodities while operating Quantec.

In 1980, husband and Larry Hite agreed to begin a joint venture using a statistical approach to trading commodities futures. During the first two years of the operation, wife performed historical research on commodities prices, compiled market data, and traded commodities according to trading rules established by husband. Wife was involved in the daily operation of trading and record-keeping until 1984, when her functions were duplicated by computers. Although wife did not play a role in developing the computer programs, her market research provided data used in the programs.

In 1984, husband and Hite entered into a partnership, known as MINT, with E.D. & F. Man Group, a London-based financial institution, to trade commodities using the statistical approach developed by husband and Hite. Wife assisted husband in drafting and negotiating the partnership agreement. Husband's interest in the MINT partnership was represented by Peter Matthews, Inc. (PMI), a corporation wholly owned by husband. The parties received roughly equivalent salaries from PMI through 1988, after which time for tax reasons PMI stopped paying wife a salary. Wife handled tax, corporate, financial planning, legal, and other issues in the daily operations of MINT and PMI but did not play a role in the formulation of trading strategy. Wife was the primary liaison with the partnerships' account and tax planner, as well as their attorney, until the early 1990's. Several witnesses who worked with MINT described the parties as a team working together to achieve the goals of MINT.

MINT experienced extraordinary growth during the 1980's and, at one point, managed over a billion dollars in assets. As shareholder, husband received millions in profit from PMI. The parties' child, Lucy, was born on June 30, 1989. Husband became an internationally respected commodities trader. Wife often travelled with husband on business trips. At the same time, wife assumed primary responsibility for the household affairs and the care of Lucy.

In 1992, wife informed husband that she wanted a divorce. In 1993, wife explained that she felt husband was not emotionally supporting her and continued to want a divorce. Husband and wife lived together until March 1994, when husband moved out of the marital home. Husband filed a bill of complaint for divorce on February 13, 1996, and wife filed a cross-bill of complaint on March 20, 1996.

A commissioner took evidence and in a written report addressed the issue of the breakup of the marriage. The commissioner detailed the parties' contributions and roles in the relationship and concluded that neither party should bear disproportionate blame for the breakup of the marriage. Neither party filed exceptions to the commissioner's report.

After hearing evidence, the trial court concluded that wife had played a significant role in the parties' business success in the early 1980's but that her role diminished after the formation of MINT. It noted:

As between the parties, Mr. Matthews played a more substantive role than Mrs. Matthews in the initial start-up years of the commodities endeavors and played a far more significant role in the marketing and success of MINT.... [I]t is clear that the success of MINT was attributable to a brilliant idea, perseverance, and hard work in implementation, hard work in arranging funding, and persistence and skill in marketing. Mrs. Matthews played a greater role in that lengthy process than most persons do in their spouse's business. She played an active role in the inception of the parties' business endeavors and a much decreased one as the business endeavor flourished. But her role pales compared to that of Mr. Matthews.

The court found that the parties' income between 1985 and 1995 had exceeded $80 million and that the parties had approximately $50.7 million in assets to be divided between them.

In its letter opinion, the trial court stated that it considered the factors enumerated in Code § 20-107.3(E). Specifically, the court concluded that the circumstances and factors contributing to the dissolution of the marriage were not significant to the division of property, that the parties had "considered their marital property to be equally owned and accessible, regardless of the fact that Mr. Matthews principally generated it," and that wife had played a greater role than husband in monitoring the parties' investments and making non-monetary contributions to the family. The court awarded a total of approximately $22.1 million to wife and approximately $28.6 million to husband. In this division, husband received 100% of the parties' interest in PMI and MINT and approximately 56.4% of the total assets. The court stated that it had "taken into account Mr. Matthews' contributions to the acquisition of the marital property of the parties following the separation, and have allocated an appropriate share to him based on that factor."

On appeal, we view the evidence in the light most favorable to the party prevailing below. Wagner v. Wagner, 16 Va.App. 529, 532, 431 S.E.2d 77, 79 (1993) (en banc). The determination of an equitable distribution award rests within the sound discretion of the trial court and will not be reversed unless plainly wrong or without evidence to support it. McDavid v. McDavid, 19 Va.App. 406, 407-08, 451 S.E.2d 713, 715 (1994) (citing Srinivasan v. Srinivasan, 10 Va.App. 728, 732, 396 S.E.2d 675, 678 (1990)). "[A]s long as the trial court considers all the factors, it is at the trial court's discretion to determine what weight to give each factor when making the equitable distribution award." O'Loughlin v. O'Loughlin, 20 Va.App. 522, 527, 458 S.E.2d 323, 325 (1995) (citing Booth v. Booth, 7 Va.App. 22, 28, 371 S.E.2d 569, 573 (1988)).

I. Husband's Contributions to the Marriage

Husband first contends the trial court erred in awarding wife $22.1 million of $50.7 million in marital assets, arguing that his "[s]uperior" contributions to the marital property, specifically, his disproportionate contributions to the parties' commodities futures trading business, mandate a "[s]ubstantially [d]isparate" award in his favor.

In its letter opinion, the trial court summarized the evidence as showing that wife played a significant role in the parties' business during the first ten years of the marriage. Conversely, the trial court found that wife played a diminished role in the success of MINT and that "her role pales compared to that of Mr. Matthews." The court found it significant that the parties viewed their marriage as "an equal sharing of the fruits of the marriage, regardless of which spouse generated the family's income." The court also observed that wife had played a primary role in monitoring the family's investments and making non-monetary contributions to the family.

Husband does not challenge the court's findings but claims the court's award of approximately 56.4% of the marital estate to him was inadequate. In his brief, husband catalogues his primary and extensive role in the extraordinary success of MINT and argues that the trial court should have exercised its discretion to award him a larger proportion of the marital estate.

As husband notes, Virginia law does not establish a presumption of equal distribution of marital assets. Papuchis v. Papuchis, 2 Va.App. 130, 132, 341 S.E.2d 829, 830 (1986). It is within the discretion of the court to make an equal division of assets, see Bentz v. Bentz, 2 Va.App. 486, 490, 345 S.E.2d 773, 775 (1986), or to make a substantially disparate division of assets, see Aster v. Gross, 7 Va.App. 1, 8, 371 S.E.2d 833, 837 (1988), as the factors outlined in Code § 20-107.3(E) require. See Alphin v. Alphin, 15 Va.App. 395, 403, 424 S.E.2d 572, 576 (1992). In determining an equitable distribution award, the trial court must make "delicate and difficult judgments," Bentz, 2 Va.App....