Pence v. Pence

Decision Date18 October 2016
Docket NumberRecord No. 1567-15-4,Record No. 1813-15-4,Record No. 1591-15-4
CourtVirginia Court of Appeals
PartiesLIZA MARIE PENCE v. GREGORY ALLEN PENCE GREGORY ALLEN PENCE v. LIZA MARIE PENCE

UNPUBLISHED

Present: Chief Judge Huff, Judges Decker and O'Brien

Argued at Alexandria, Virginia

MEMORANDUM OPINION* BY CHIEF JUDGE GLEN A. HUFF

FROM THE CIRCUIT COURT OF ARLINGTON COUNTY

Louise M. DiMatteo, Judge

Demian J. McGarry (Curran Moher Weis, P.C., on briefs), for Liza Marie Pence.

Gregory L. Murphy (Vorys, Sater, Seymour and Pease, LLP, on briefs), for Gregory Allen Pence.

Three consolidated appeals are taken from final orders of the Circuit Court of Arlington County ("trial court") relating to the divorce of Liza Marie Pence ("wife") and Gregory Allen Pence ("husband"). Wife asserts fourteen assignments of error to the trial court's equitable distribution award. Husband asserts three assignments of error to the trial court's rulings onattorneys' fees, spousal support, and child support. For the following reasons, this Court affirms in part and reverses in part.

I. BACKGROUND

"When reviewing a trial court's decision on appeal, we view the evidence in the light most favorable to the prevailing party, granting it the benefit of any reasonable inferences." Congdon v. Congdon, 40 Va. App. 255, 258, 578 S.E.2d 833, 835 (2003). So viewed, the evidence is as follows.1

Husband and wife married on June 9, 2001, in Fairfax County, Virginia. The couple had three children: K.M.P. (born December 5, 2001), G.A.P. (born June 30, 2003), and K.A.P. (born February 19, 2009). Sharing of household responsibilities and child-rearing duties shifted between husband and wife over the course of their marriage, and in the later years of their marriage, husband assumed an increasing portion of the household duties and responsibilities.

A few years after marrying, husband started a business known as "Pence Quality Homes" ("PQH"). PQH built or renovated homes. In the early years of the business, wife assisted in some of the office and bookkeeping responsibilities of PQH. Additionally, wife was the beneficiary of a substantial trust fund established for her by her grandparents. As a result, wife's separate trust fund was sometimes relied upon to support real estate loans for projects of PQH. During the course of their marriage, husband and wife acquired properties to be worked on by PQH, often utilizing that property as the marital residence during the renovation period.

Husband testified that until their marital breakdown which began "around 2012," wife had been attentive to him and to the children and did her best to help in the business. Leading upto their separation in 2014, however, wife began expending increasingly large sums on personal travel and recreation and detaching herself from involvement in family and business affairs. In November 2013, husband confronted wife about an affair she was having with her personal trainer. Although wife promised to stop, in January 2014, husband discovered she had resumed the affair. By final divorce decree entered on September 4, 2015, husband was granted a divorce based on the ground of wife's adultery.

Incident to the divorce proceeding, the trial court conducted a hearing on equitable distribution and ordered distribution pursuant to its letter opinion dated July 23, 2015. In its opinion, the trial court found that "[wife] clearly became disenchanted with her role as wife and mother and was enjoying spending 'quality time' outside of the home." Furthermore, the trial court noted that "given the grounds upon which the Court is granting the divorce, [wife] dissolved more than the marriage - she dissolved their business relationship." After working through the factors of Code § 20-107.3(E), the trial court concluded that "[g]iven the overall contributions of [husband] to the business - he was the face of the business . . . it is clear that [husband] contributed more personal equity, financial risk, and personal good will than [wife] did to the endeavor." The trial court acknowledged that wife did make substantial contributions initially, but determined that husband "more than matched" these. Consequently, the trial court awarded much of PQH's property interests to husband, splitting the liability between husband and wife who equally benefitted from its operation during the marriage.

The trial court also denied husband's request for emergency spousal support, child support, and the parties' respective requests for attorney's fees and costs. In denying husband spousal support, the trial court reasoned that in light of husband's receipt of most of PQH's property in equitable distribution, husband should be able to generate sufficient income for his family again. In denying the parties' motions for attorneys' fees and costs, the trial courtconcluded that both parties shared in the responsibility for the substantial fees and costs accrued and that an award of fees and costs was not warranted under the circumstances. Finally, in denying child support, the trial court relied upon its reasoning articulated in the previous rulings from the equitable distribution hearing, and concluded that "because of the earnings capabilities" neither husband nor wife should need child support payments from the other.

Husband and wife noted exceptions to the trial court's orders and wife filed a motion for reconsideration, which was not granted. This appeal followed.

II. ANALYSIS
A. Equitable Distribution Award

Wife has assigned error to fourteen aspects of the equitable distribution award. Her assignments, as grouped by wife, are as follows:

1. Assignments of Error 1 and 2: The trial court erred in making a disproportionate equitable distribution award to . . . [husband] and [in] using the fault grounds for divorce as a vehicle to punish [wife].
2. Assignments of Error 3, 4, and 6: The trial court erred when it considered the needs of [husband] in making its equitable distribution decision.
3. Assignment of Error 5: The trial court erred when it found no valuation was presented regarding the 29th Street property.
4. Assignment of Error 7: The trial court erred when it ordered [wife] to be liable for [fifty percent] of the lien on the 29th Street Property [while] at the same time awarding the property solely to [husband].
5. Assignment of Error 8: The trial court erred when it ordered [wife] to reimburse [husband] $22,500 to an account when there was no motion for an alternate valuation date presented as to the account, no evidence of waste and when the funds from which the $45,000 were taken were "no longer in existence" at the time of trial.
6. Assignment of Error 9: The trial court erred in failing to equitably divide [husband's] . . . IRA when there was evidence of its value as of the date of separation, evidence of [husband's] post-separation liquidation of said IRA, and [wife] filed a Motion for Alternate Valuation Date, for which the trial court failed to rule.
7. Assignment of Error 10: The trial court erred when it refused to receive into evidence [husband's] expert's business valuation report.
8. Assignment of Error 11: The trial court erred in classifying [husband's] [First Virginia Community Bank] stock as separate property because he failed to meet his burden of proof that the stock was not marital.
9. Assignment of Error 12: The trial court erred in ordering [wife] to be responsible for one-half of [husband's] 2012 federal tax liability when the evidence showed [husband] filed the return separately, the liability arose from [husband's] business for which [wife] was awarded no interest, and that [wife] had her own liability from the filing of her 2012 taxes.
10. Assignment of Error 13: The trial court erred in finding all of the jewelry marital and equally dividing it when there was evidence that a substantial amount of the jewelry was [wife's] separate property.
11. Assignment of Error 14: The trial court erred in failing to value, classify and divide wife's American Express and Chase Sapphire debts.
1. Standard of Review

Review of a trial court's equitable distribution decision is conducted under an abuse of discretion standard.

"Fashioning an equitable distribution award lies within the sound discretion of the trial judge[,] and that award will not be set aside unless it is plainly wrong or without evidence to support it." "Virginia law does not establish a presumption of equal distribution of marital assets. It is within the discretion of the court to make an equal division or to make a substantially disparate division of assets as the factors outlined in Code § 20-107.3(E) require."

Torian v. Torian, 38 Va. App. 167, 181, 562 S.E.2d 355, 362 (2002) (emphasis added) (first quoting Srinivasan v. Srinivasan, 10 Va. App. 728, 732, 396 S.E.2d 675, 678 (1990), and then quoting Matthews v. Matthews, 26 Va. App. 638, 645, 496 S.E.2d 126, 129 (1998)). "On appeal, a trial court's equitable distribution award will not be overturned unless the Court finds 'an abuse of discretion, misapplication or wrongful application of the equitable distribution statute, or lack of evidence to support the award.'" Wiencko v. Takayama, 62 Va. App. 217,229-30, 745 S.E.2d 168, 174 (2013) (quoting McIlwain v. McIlwain, 52 Va. App. 644, 661, 666 S.E.2d 538, 547 (2008)). In light of this standard, wife's assignments of error are analyzed in turn below.

2. Assignments of Error
a. Assignments of Error 1 & 2: Whether the trial court's award was punitive

In her first two assignments of error, wife claims that the trial court abused its discretion by making an award that is punitive in two ways: (1) "in awarding [husband] approximately 102% of the marital assets when there was no evidence before the court to justify such a punitive and disproportionate result," and (2) "when it factored in the grounds for divorce in the equitable distribution of marital assets when there was no evidence presented that the fault ground of adultery . . . had any monetary impact on the...

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