Williams v. Williams

• Decision Date: 17 March 1987
• Docket Number: No. 1480-85,1480-85
• Citation: 354 S.E.2d 64,4 Va.App. 19
• Parties: James Louis WILLIAMS v. Susan Elaine Bower WILLIAMS. Record
• Court: Virginia Court of Appeals

Page 64

354 S.E.2d 64

4 Va.App. 19

James Louis WILLIAMS v. Susan Elaine Bower WILLIAMS.

Record No. 1480-85.

Court of Appeals of Virginia.

March 17, 1987.

Judith M. Bragan, Fairfax, for appellant.

Ilona Ely Freedman, Alexandria, for appellee.

Present: KOONTZ, C.J., and COLEMAN and DUFF, JJ.

KOONTZ, Chief Judge.

James Louis Williams appeals from a final order and decree of divorce entered by the Circuit Court of Fairfax County on October 22, 1985. He claims that the trial court erred in granting an excessive monetary award to his wife, Susan Elaine Bower Williams, by (1) failing to consider all of the factors contained in Code § 20-107.3(E), and (2) considering the issue of support in its application of Code § 20-107.3. We agree that the trial court erred in its application of the statute and reverse.

While there is some conflict in the evidence, the essential facts are not in dispute. James and Susan were married in 1967 and separated for the last time on March 30, 1983. Three children were born of the marriage. When the bill of complaint was filed on August 17, 1984, James was unemployed and legally blind as a result of a diabetic condition. He was previously employed by the federal government and that employment ended in 1978. His current income was $298 per month in social security disability benefits and $77 per month in food stamps. In addition he was permitted to live in special subsidized housing at a cost of $35 per month. Susan was employed by the Fairfax County School Board with an annual income of approximately $21,000. The parties' primary marital asset was the $70,000 equity in the marital home. In addition, they jointly owned a $27,513.15 bank account derived from a fire insurance policy, $2,000 from the sale of a 1979 Datsun automobile and approximately $9,400 represented by Susan's retirement plan. Various other minor items of marital personal property are not in dispute for purposes of this appeal.

In the decree of October 22, 1985, the trial court awarded a final divorce to James from Susan on the ground of a separation for a period of more than one year. Susan was awarded custody of the three minor children and the trial court specified that while she was entitled to receive child support, James was financially unable to pay support at the present time. After reciting that consideration had to be given to all of the factors enumerated in Code § 20-107.3, the trial court awarded Susan her one-half share of the jointly owned home and a judgment for $35,000 and directed that this judgment be recorded as a lien against James' interest in the home. The court further provided that "the said judgment may be satisfied by the Complainant (James) signing the deed and conveying completely his one half interest in said home to the defendant (Susan), that the intent of the Court is to award the said home to the defendant." Finally, the trial court awarded James certain specific items of personal property, $20,000 from the joint bank account, and awarded the remainder of the personal property and the bank account to Susan. Specifically, Susan was awarded all of her retirement fund and the $2,000 proceeds from the sale of the Datsun. In addition to these monetary provisions, the trial court reserved the right of both parties to receive spousal support in the future.

In summary, for purposes of our analysis here, the trial court's decree resulted in an award of approximately $88,000 to Susan and $20,000 to James. Further, the decree made no present award of spousal support nor did it award Susan child support.

At the outset of our analysis, based upon our careful review of the record in this case, we are convinced that the chancellor considered all of the factors enumerated in Code § 20-107.3(E) in making his final disposition. Our conclusion in this regard, therefore, is not based solely on the recital to that effect in the final decree. In addition, although we held in Papuchis v. Papuchis, 2 Va.App. 130, 132, 341 S.E.2d 829, 831 (1986) that there is no presumption in Virginia favoring equal division of marital property, we also held in Bentz v. Bentz, 2 Va.App. 486, 490, 345 S.E.2d 773, 775 (1986) that a court is not constrained from making an equal division if it finds it appropriate to do so upon consideration of the factors set forth in Code § 20-107.3(E).

The error we find in this case which mandates a reversal is the chancellor's application of these factors. Furthermore, we find, as appellant contends, that the chancellor erroneously, although with obvious laudable intentions, permitted his concerns for James' inability to pay child support to persuade him to construct an equitable disposition in conflict with the statutory mandate of Code § 20-107.3.

We have previously addressed the statutory scheme of Code § 20-107.3 for granting a monetary award in an appropriate case based upon the equities and the rights and interests of each party in the marital property. We have noted that this Code section is not merely an authorization to distribute real and personal property accumulated during the marriage. Rexrode v. Rexrode, 1 Va.App. 385, 393, 339 S.E.2d 544, 549 (1986). ¹ Perhaps it is unfortunate that this relatively new statute has come to be commonly referred to as an "equitable distribution" statute; the use of the term "distribution" in connection with this statute has caused considerable confusion and misapplication of the statute among the bench and bar. Accordingly, we take this opportunity to again address the broad scheme of the statute in the context of the facts of this particular case.

Unlike similar statutes in other states which authorize the actual distribution of marital property by assignment or allotment between the parties, the hallmark of the Virginia statute is a monetary award which can be satisfied by the party against whom such award is made by conveyance of property, subject to the approval of the Court. Code § 20-107.3(D). Thus, the trial court's concern is an equitable division of the jointly acquired marital wealth of the spouses during their marriage and not the equitable distribution by assignment or allotment of their specific property. We recognize that in many cases, if not most, logic and practicalities might dictate that the trial court's task would be simplified by allotting specific property to each spouse and then making a monetary award to attain an equitable result based on any monetary difference in the prior allotments. Our legislature did not adopt such a statutory scheme in Code § 20-107.3 and if a change is to occur in the statute, that is clearly the prerogative of the legislature and not the courts.

In the present case the chancellor allotted specific marital property not titled in the names of both parties which is not permitted by Code § 20-107.3(C). See McGinnis v. McGinnis, 1 Va.App. 272, 276, 338 S.E.2d 159, 161 (1985). More importantly, the chancellor awarded Susan a monetary award of $35,000 and directed that this award be a lien on James' interest in the marital residence. The provisions of Code § 20-107.3(D) give the party against whom the award is made the option of conveying property (or an interest in property) to satisfy the award with the court's approval. This Code section does not give that option to the chancellor. This distinction is no...