v.
Sudarsan Srinivasan
Present: Judges Humphreys, Alston and Decker
Argued at Richmond, Virginia
UNPUBLISHED
TAMMY T. WARE
MEMORANDUM OPINION BY v. Record No. 1568-17-2 JUDGE ROSSIE D. ALSTON, JR. JULY 31, 2018 SUDARSAN SRINIVASAN
FROM THE CIRCUIT COURT OF HENRICO COUNTY James S. Yoffy, Judge
Janipher W. Robinson (Robinson and Greene, on briefs), for appellant.
Kimberly Fitzgerald Austin (Friedman Law Firm, P.C., on brief), for appellee.
Tammy T. Ware (appellant) contends that the Circuit Court for the County of Henrico
(trial court) improperly divided the net proceeds from the sale of the marital residence.
Appellant specifically argues that the trial court erred in its approach to crediting mortgage payments, late fees on those mortgage payments, and homeowners’ association (HOA) fees as well as when it assessed monthly rent against appellant. We disagree and affirm the trial court.
BACKGROUND
Suffice it to say that the background of the dispute is rather convoluted and complex.
Appellant and Sudarsan Srinivasan (appellee) were married on March 29, 1996, and together they have a minor child. The parties filed cross-petitions for divorce in 2013: appellant’s ground for divorce was adultery, and appellee sought a no-fault divorce. As the petitions proceeded, appellant requested pendente lite relief. Accordingly, the trial court issued a
Pursuant to Code § 17.1-413, this opinion is not designated for publication.
pendente lite order on September 10, 2013, granting appellant “[e]xclusive use and possession of the marital residence” but also requiring her to “pay . . . the mortgage . . . , mortgage insurance, homeowner’s insurance, and [HOA fees].” The divorce action and the equitable distribution
case were bifurcated, and the trial court issued the final divorce decree on September 28, 2015, awarding appellant a divorce on the ground of a one-year separation after determining that the separation date was July 27, 2013.
The trial court next set forth the framework for equitable distribution.[1] In this regard, the trial court first acknowledged that marital property was to be “divided equally” between the parties and that the marital residence was to be classified as marital property. Moreover, in the final decree of divorce, the trial court ordered that the marital residence be listed for sale by
February 19, 2016, and that the net proceeds from that sale be divided equally between the parties. The trial court also directed the parties to “fully comply with the listing agent’s [written] recommendations” and to make the marital residence “available for showings.”
Appellant objected to the trial court’s equal division of the net proceeds of the sale of the marital residence even though she had agreed with the trial court’s approach to dividing marital property at trial. Consequently, the trial court issued its January 19, 2016 letter opinion in which the trial court set forth its Code § 20-107.3(E) analysis and reiterated its prior determinations regarding the disposition of the marital estate. To this end, and consistent with the requirements
of Code § 20-107.3(E), the trial court observed that appellee is 47 and appellant is 48, that the parties were married 19 years, that they “enjoyed a very good standard of living,” and that they
both are mentally stable, but physically, appellant suffered from some medical conditions. In addition, as found by the trial court, appellee possessed two master’s degrees and has a lucrative career whereas appellant possessed a high school diploma and was a stay-at-home mother.
[*2]Appellant assumed this role at the request of appellee as per his cultural tradition. It follows then that appellee made all monetary contributions whereas appellant made most of the nonmonetary
contributions. Appellee also provided financial support for his parents in the amount of $1,200-$1,500 per month. The trial court also noted that after appellee lost his job due to no fault of his own, he found a comparable position in New Jersey. Appellant refused to relocate
there with the parties’ minor child. Consequently, appellee traveled to Henrico, Virginia on the weekends to see appellant and their child. Regarding the marital residence, the trial court found that the date of valuation for the marital residence was May 9, 2013. The marital residence was valued at $430,000, and the mortgage debt was $257,783.47 as of September 15, 2015. Thus, at the time of equitable distribution, the equity in the marital residence was $172,216.53. The trial court articulated its findings in the letter opinion and incorporated the letter opinion into the final decree, which was entered on March 28, 2016.
As directed by the trial court, a realtor, Amy Pryor, was retained, who made recommendations to the parties to prepare the marital residence for listing. One of her
recommendations was that the parties “remove all clutter” from the marital residence by July 15, 2016. Pryor emailed and left a hard copy of her recommendations with appellant and also forwarded them to appellant’s counsel, appellee, and appellee’s counsel on July 6, 2016.
Appellee subsequently filed a petition for a rule to show cause regarding the sale of the marital residence. Appellee alleged that appellant violated the trial court’s order to comply with
Pryor’s written recommendations because appellant failed to “remove all clutter.”2 On September 6, 2016, the trial court heard evidence on the show cause as well as on appellee’s motion regarding payment of the mortgage—the final decree was silent as to which party was to
[*3]assume that obligation. When ruling on the show cause, the trial court did not hold appellant in contempt; rather, the trial court concluded that by the hearing date, appellant was motivated to
and had complied with Pryor’s recommendation.[3] In its resulting September 29, 2016 order, the trial court reiterated that both parties were required to comply with Pryor’s written recommendations and permitted the parties to schedule emergency hearings if either party failed
to do so. The trial court also directed appellee to “advance [funds] for all repairs, expenses, and costs for sale recommended by . . . Pryor[,]” noting that appellee would be reimbursed for these advancements. Then, addressing the motion on the mortgage payments, the trial court shifted
that responsibility from appellant to appellee, stating that appellee was to be “credit[ed] for [those] payments from the . . . proceeds.” The matter was continued to October 11, 2016.
On October 11, 2016, the trial court reviewed the status of the show cause. Pryor testified that she hired a professional to photograph the marital residence. The day before the session was set to occur, appellant notified Pryor that the date that had been arranged for the photo session was no longer convenient. This caused Pryor to cancel the appointment and list the marital residence with just an exterior photograph. Pryor rescheduled the photo session.
During the re-scheduled photo session, appellant refused to leave the marital residence despite the photographer’s request.
Pryor also attempted to schedule showings of the marital residence. She provided appellant with two possible times—one was a few hours later and the other was the next afternoon. Appellant indicated that both proposed times were inconvenient. Pryor followed up with appellant about those dates, and appellant maintained that the times were inconvenient and informed Pryor that she was now ill. Upon hearing that, Pryor asked appellant to step outside of the house so that the potential buyers could view the marital residence, but appellant refused.
[*4]At the October 2016 review hearing, the trial court repeated that appellee was going to be credited for mortgage payments he made. In its November 3, 2016 order, the trial court found
that “[appellant] purposefully procrastinated and delayed the sale of the [marital residence, and that she] did not cooperate with the realtor regarding the showing . . . nor did she cooperate with
the photographer.” The trial court ordered appellant not to “prevent or hinder any showings of the [m]arital [r]esidence” and specifically directed her to leave the marital residence during the entire showing. If appellant failed to do so, she would be ordered to vacate the marital residence.
Ultimately, the marital residence was contracted to be sold for $370,000. Appellee and the buyers signed the purchase agreement on February 9, 2017. On February 14, 2017, appellee notified appellant of the purchase agreement and demanded that she vacate the marital residence
by March 16, 2017 because of the impending closing date. Appellant did not confirm receipt of the purchase agreement or agree to vacate the property.
Consequently, appellee filed a motion for an emergency hearing on February 23, 2017.
The trial court heard the matter on March 13, 2017 and again reviewed the status of the September 2016 show cause.[4] Regarding the emergency hearing, appellant stipulated that she was notified of the purchase agreement; however, she took issue with permanently vacating the marital residence. Appellant testified that she did not have the resources to facilitate moving out of the marital residence with the parties’ minor child.
[*5]With regard to the show cause, Pryor testified that she required access to the marital residence to conduct a termite inspection to facilitate the sale of the property. During the termite inspection, appellant left the marital residence, as she was ordered to do, but directed another individual to remain in her place. Pryor also stated that the buyers required access to the marital residence to complete a final walk-through as stated in their addendum to the purchase
agreement. Pryor expressed concern that if appellant prevented the buyers from conducting the final walk-through, the buyers would dissolve the purchase agreement. Pryor noted that contractors also needed access to the marital residence to remedy the HOA violations, which were required to be repaired before the marital residence could be sold.
In its subsequent March 22, 2017 order, the trial directed that “[appellant] cooperate with
. . . Pryor” and allow her access to the marital residence for those limited purposes. The trial court ordered that appellant leave the marital residence during these times and prohibited her
from directing others to be present in her absence. Recognizing the difficulties appellant faced in effectuating her move, the trial court extended the date appellant was to permanently vacate the marital residence to March 27, 2017 and ordered appellee to immediately pay appellant $10,000
“as an advance of her portion of the . . . proceeds.” The trial court continued the matter to July
31, 2017 and directed the parties to file proposed calculations detailing how the trial court was to distribute the remaining proceeds.
Appellee filed a second motion for an emergency hearing on March 21, 2017, which the trial court heard the next day. Pryor testified that earlier in the week, she sent appellant a text message stating that contractors were scheduled to be at the marital residence to repair the HOA violations. Appellant did not respond. Pryor and the contractors arrived at the marital residence on March 21, 2017, but appellant was not present. These necessary repairs required both the garage door and door to the marital residence to be unlocked. Pryor attempted to but ultimately could not gain entry to the inside of the marital residence.
[*6]Appellant testified that she never received Pryor’s text message. Appellant indicated that on March 21, she had deadbolted the front door while she temporarily left the marital residence.
She returned hours later and informed Pryor and the contractors that she had scheduled a meeting
with professional movers later that afternoon. Even after this discussion with Pryor and the contractors, appellant refused to keep the garage door and the door to the marital residence open for the contractors to finish their repairs. Ultimately, the contractors could not complete their
work; thus, the HOA violations were not cured. Hearing conflicting testimony about whether or not appellant received the text message from Pryor, the trial court asked Pryor to retrieve and produce her cell phone. After examining Pryor’s cell phone, the trial court stated on the record that Pryor did send a text message to appellant about the matter. The trial court asked appellant to argue why she should not be held in contempt. Appellant argued that a text message may appear to be transmitted but may not actually be sent. In response, the trial court noted that
“[appellant] really has no credibility . . . in this court.”
Accordingly, in its April 7, 2017 order, the trial court found appellant
in contempt for her willful violation of the [trial c]ourt’s order regarding the sale of the [m]arital [r]esidence. Specifically, the [trial] court [found] that [appellant] failed to allow the realtor, . . . Pryor, access to the [marital residence] on March 21, 2017 to repair HOA violations. The [trial c]ourt [also found that appellant] has continually delayed the sale of the [marital residence].
The trial court then took “the issue of sanctions for the finding of contempt” under advisement. The trial court reminded appellant that, this time, if she failed to “fully comply” with Pryor’s requests, she would be “ordered to report to jail.” Appellant was prohibited from employing the “deadbolt . . . during daytime hours” and was required to keep the garage door and the door to the marital residence open for the contractors. She was also ordered to “permit all other repairs requested by . . . Pryor.” The trial court continued the matter to July 31, 2017.
[*7]At the July 31, 2017 evidentiary hearing, the trial court was set to hear the parties’ proposals regarding the division of the proceeds from the sale of the marital residence.
Appellant moved for a continuance claiming appellee had not produced documents that were
necessary for her testimony. The trial court ordered appellee to produce those documents and permitted appellant to provide her testimony at a later date.
The court then heard appellee’s evidence. Appellee testified that he advanced $10,000 to appellant, paid $2,192.90 in recommended repairs, which he supported with receipts, $36,494.14 in mortgage payments, which he supported with a printed payment history, and $5,618 in HOA fees - that figure included a collection fee of $2,500, a compliance fee of $900, and unpaid HOA fees of approximately $1,500, which he supported with a statement from the HOA. Appellee testified that he was not aware that appellant had stopped paying the HOA fees.
The trial court stated that appellee would be reimbursed for a portion of the HOA fees
because the trial court shifted the burden of paying those fees from appellant to appellee in the September 29, 2016 order. Thus, appellee was to be credited, at most, for $4,526 in HOA fees.
Appellee then asked the trial court to award him attorney’s fees of $14,128, which he supported with an affidavit. Appellee also admitted that late fees incurred on mortgage payments, totaling
$3,254, should and would be borne by him. The matter was continued to August 28, 2017 for the presentation of appellee’s evidence.
At the recommencement of the July 31, 2017 evidentiary hearing on August 28, 2017, appellee presented his final proposal to the trial court; he compromised by decreasing most of his reimbursement requests. Appellant then advanced her arguments. Arguments relevant to matters on appeal included the following: she contended that she should receive fifty percent credit for the mortgage payments and that she should not be responsible for HOA fees because she was merely a tenant.
[*8]During appellant’s argument regarding mortgage payments, the trial court noted appellant
had been living in the marital residence “rent-free” and that she was “not going to get credit for any mortgage payments that [appellee] made.” During appellant’s argument regarding HOA fees, the trial court noted appellee was compromising while “[appellant was] sticking . . . a stick
in [appellee’s] eye.” In its ruling, the trial court concluded that “[appellant] was responsible for delay after delay after delay” regarding the sale of the marital residence, acknowledged that it had held her in contempt, and indicated that it was “going to deal with [the contempt matter] today.”
At the hearing and in its written order, the trial court found that the net proceeds totaled
$155,404.16 and that the parties were to split that sum equally. The trial court also ruled that appellee be reimbursed according to the trial court’s prior orders. Accepting appellee’s
representations, the trial court then credited appellee $36,494.14 for mortgage payments, $1,096.15 for repairs, $10,000 for the advance, $2,263 for HOA fees, and $5,000 in attorney’s fees. After doing so, the trial court stated it “was prepared to assess the full $14,000.00 against
[appellant] for her egregious and continued throwing [of] road blocks in the sale of [the marital residence].” Appellee’s counsel indicated that the trial court erred when it inadvertently credited appellee with the late fees and for the entire sum of mortgage payments. The trial court recognized its error and credited appellant with $3,154.10 in late fees, $4,508 in mortgage payments because appellant did not live in the marital residence for two months, and $5,556.53 for a support payment appellee missed. Before announcing the parties’ corrected respective shares, the trial court addressed the show cause issues. In this regard, the trial court fined appellant $100 which it then suspended. The trial court then announced the parties’ share of the proceeds: appellee’s share was determined to be $119,236.74 and appellant’s share was set at
[*9]$36,167.42.5 Appellant objected and filed a motion for reconsideration which the trial court denied.
Now comes this appeal.
ANALYSIS
I. DIVISION OF NET PROCEEDS
What began as a decision purely rooted in principles of equitable distribution transformed into a determination borne out of equitable distribution and contempt principles.
A. EQUITABLE DISTRIBUTION
We recognize that the “equitable distribution statute ‘is intended to recognize a marriage
as a partnership and to provide a means to divide equitably the wealth accumulated during and by that partnership based on the monetary and non-monetary contributions of each spouse.’”
Robinson v. Robinson, 46 Va. App. 652, 661, 621 S.E.2d 147, 152 (2005) (quoting von Raab v. von Raab, 26 Va. App. 239, 245, 494 S.E.2d 156, 159 (1997)). “Virginia law does not establish a presumption of equal distribution.” Judd v. Judd, 53 Va. App. 578, 592, 673 S.E.2d 913, 919
(2009) (quoting Matthews v. Matthews, 26 Va. App. 638, 645, 496 S.E.2d 126, 129 (1998)). “It is within the discretion of the [trial] court to make an equal division or to make a substantially
disparate division of assets as the factors outlined in Code § 20-107.3 require.” Rinaldi v. Rinaldi, 53 Va. App. 61, 76, 669 S.E.2d 359, 366 (2008) (quoting Matthews, 26 Va. App. at 645, 496 S.E.2d at 126). “Where an equitable distribution is appropriate, then all of the provisions of Code § 20-107.3 must be followed.” von Raab, 26 Va. App. at 245, 494 S.E.2d at 159 (quoting
Artis v. Artis, 4 Va. App. 132, 136, 354 S.E.2d 812, 814 (1987)). “In fashioning an equitable