COURT OF APPEALS OF VIRGINIA
Present: Judges Elder, Annunziata and Agee ∗
Argued at Alexandria, Virginia
JAMES C. THOMAS, JR.
OPINION BY
v. Record No. 3297-01-4 JUDGE ROSEMARIE ANNUNZIATA
MAY 20, 2003
SANDRA L. THOMAS
FROM THE CIRCUIT COURT OF FAIRFAX COUNTY
Robert W. Wooldridge, Jr., Judge
James C. Thomas, Jr., pro se
(Oliver Denier Long; EZ Justice, PLC, on
brief), for appellant.
(Sandra L. Thomas, pro se, on brief).
Appellee submitting on brief.
James C. Thomas, husband, appeals the trial court's
equitable distribution award on the following grounds: 1) the
trial court erred when it classified his use of marital funds to
pay court-ordered pendente lite spousal support as marital waste;
and 2) the trial court erred when it used as a valuation date the
date of the parties' separation rather than the date of the
equitable distribution hearing.
∗
Justice Agee participated in the hearing and decision of
this case prior to his investiture as a Justice of the Supreme
Court of Virginia.
For the reasons that follow, we reverse the decision of the
trial court. 1
Background
On appeal, we view the facts in the light most favorable to
Sandra Thomas, wife, the party prevailing below, together with
all reasonable inferences that may be drawn. Richardson v.
Richardson, 30 Va. App. 341, 349, 516 S.E.2d 726, 730 (1999). So
viewed, the evidence establishes that the parties married on
January 23, 1983, separated on February 1, 1998 and divorced on
November 4, 2001. They had two children, Alexander, born on June
11, 1984, and Kelly, born on June 15, 1986.
While the parties were married, husband founded and operated
his own business, Cooper Management Institute ("Cooper
Management"). Wife worked for Cooper Management in an
administrative capacity during the marriage.
During the marriage, the parties repeatedly used Cooper
Management's working capital to pay personal obligations. Their
conduct resulted in significant tax liabilities and depleted the
assets of the company. In 1999, after the parties separated, an
employee won a judgment against Cooper Management for $104,217,
and several key employees left the company, taking many clients
with them. On November 1, 2000, husband began employment with a
new company, Common Ground, Inc. ("Common Ground") and no longer
conducted business for Cooper Management. As of January 2001,
Cooper Management had ceased all operations, had liabilities
against it in excess of $400,000 and was, effectively, insolvent.
1
A memorandum opinion issued simultaneously addresses
husband's remaining contentions.
- 2 -
Counsel for the company suggested filing for bankruptcy. The
record establishes that Cooper Management's failure was
attributable, in part, to both parties' financial mismanagement.
After their separation, husband received a salary of $70,000
per year at Common Ground. Wife was unemployed at the time of
the parties' separation but eventually began working part-time,
for $8 per hour. Husband has undergraduate and law degrees.
Wife attended college for one year.
The trial court granted wife's motion to have Cooper
Management valued as of the date of their separation for the
purposes of equitable distribution and assigned a value of
$260,000 to the business, its estimated value as of February 1,
1998, when the parties separated. The trial court issued its
findings and an equitable distribution award on November 4, 2001,
stating:
The court grants the motion of [wife] to
value [Cooper Management] as of the date of
separation. The court determines its marital
property value as of February 1998 to be
$260,000.
* * * * * * *
The court awards [husband] all of the
interest in Cooper Management.
* * * * * * *
[Wife] wrongfully withdrew $23,100 from
Cooper Management . . . . [She] owes
[husband] sixty percent of this amount, or
$19,908 . . . . [Husband] used $54,000 in
marital funds to pay pendente lite spousal
support. [Wife] is entitled to fifty percent
. . . or $27,000. Therefore . . . [husband]
owes Wife $13,140 . . . .
- 3 -
Husband appeals from that ruling. 2 For the reasons that follow,
we reverse the decision of the trial court.
Analysis
I. Standards of Review
In reviewing an equitable distribution award
on appeal, we have recognized that the trial
court's job is a difficult one, and we rely
heavily on the discretion of the trial judge
in weighing the many considerations and
circumstances that are presented in each
case. A decision regarding equitable
distribution . . . will not be reversed
unless it is plainly wrong or without
evidence to support it.
Gilman v. Gilman, 32 Va. App. 104, 115, 526 S.E.2d 763, 768
(2000) (internal citations and quotations omitted). Moreover,
"[t]he credibility of the witnesses and the weight accorded the
evidence are matters solely for the fact finder who has the
opportunity to see and hear that evidence as it is presented."
2
Husband also claims that he used Northwest Mutual Life
Fund proceeds and Marriott Partnership dividends to pay marital
debt and marital mortgages and the trial court erred in
classifying the payments as waste. The record fails to show
that the trial court made a finding that any such payments were
marital waste. Therefore, we will not address these claims on
appeal.
- 4 -
Sandoval v. Commonwealth, 20 Va. App. 133, 138, 455 S.E.2d 730,
732 (1995). In fashioning an equitable distribution award, the
trial court must consider each of the statutory factors, but may
determine what weight to assign to each of them. 3 Booth v.
Booth, 7 Va. App. 22, 28, 371 S.E.2d 569, 573 (1988). In
challenging the court's decision on appeal, the party seeking
reversal, in this case, husband, bears the burden of
demonstrating error on the part of the trial court. D'Agnese v.
D'Agnese, 22 Va. App. 147, 153, 468 S.E.2d 140, 143 (1996)
(citing Lutes v. Alexander, 14 Va. App. 1075, 1077, 421 S.E.2d
857, 859 (1992)).
II. Marital Waste
Husband contends the trial court erred when it classified
his use of marital funds to pay pendente lite support as waste.
We agree.
Waste occurs "where one spouse uses marital property for his
own benefit and for a purpose unrelated to the marriage at a time
when the marriage is undergoing an irreconcilable breakdown."
Smith v. Smith, 18 Va. App. 427, 430, 444 S.E.2d 269, 272 (1994).
"To allow one spouse to squander marital property is to make an
equitable award impossible." Booth v.
3
Code § 20-107.3(E) lists the factors a court must consider
when determining the amount of a division of marital property,
and includes in subsection (2) the "contributions, monetary or
non-monetary, of each party in the acquisition and care and
maintenance of such marital property of the parties."
- 5 -
Booth, 7 Va. App. 22, 27, 371 S.E.2d 569, 572 (1988) (citing
Sharp v. Sharp, 473 A.2d 499, 505 (Md. Ct. Spec. App. 1984)).
Whether the payment of court-ordered spousal support from
marital funds constitutes waste is a question of first impression
in Virginia. We have held consistently, however, that the
expenditure of marital funds for items such as voluntary support,
living expenses, attorney's fees, and other necessities of life
constitutes a valid marital purpose and is not waste. See, e.g.,
Anderson v. Anderson, 29 Va. App. 673, 695, 514 S.E.2d 369, 381
(1999) (mortgages, credit cards); Alphin v. Alphin, 15 Va. App.
395, 402, 424 S.E.2d 572, 576 (1992) (voluntary support, medical
bills for wife); Amburn v. Amburn, 13 Va. App. 661, 414 S.E.2d
844 (1992) (personal living expenses, attorney's fees, child's
tuition, car loans); Clements v. Clements, 10 Va. App. 580, 397
S.E.2d 257 (1990) (household expenses, child's tuition).
In Alphin, husband deposited $95,000 of marital funds into a
bank account that was under his sole dominion and control. He
submitted a complete list of his expenditures from the account to
the trial court, which established that he paid various bills
relating to the marriage with the funds, including voluntary
spousal support to wife of $6,600 per month. In upholding the
trial court's decision, we stated:
We have held that the use of funds for
living expenses while the parties are
separated does not constitute dissipation
. . . . The evidence proves that all the
expenditures were for a proper purpose. The
wife presented no evidence to the contrary.
Alphin, 15 Va. App. at 403, 424 S.E.2d at 576. We find no reason
to distinguish between voluntary and court-ordered spousal
- 6 -
support in the application of marital waste jurisprudence. In
both cases, the expenditure is for a valid marital purpose and
does not constitute dissipation of marital assets in a deliberate
attempt to affect a monetary award. See id.
In the case at bar, the trial court found that husband used
$54,000 of marital funds from the couple's Northwest Mutual Life
Fund proceeds and Marriott Partnership dividends to pay court-
ordered pendente lite spousal support. The court treated the
expenditure as marital waste and credited wife with 50% of the
total sum. We find this to be error as a matter of law, in light
of our decisions in Alphin and other cases involving marital
waste.
III. Date of Valuation
Husband asserts that the trial court should have valued
Cooper Management at the date of the equitable distribution
hearing, rather than at the date of separation, because its value
at the time of the hearing was, effectively, zero. We agree.
Generally, a date as near as possible to the evidentiary hearing
should be used for valuation purposes. Mitchell v. Mitchell, 4
Va. App. 113, 119, 355 S.E.2d 18, 21 (1987); see also Code § 20-
107.3. 4 We have held that, in the interests of just and fair
4
In 1988, the General Assembly codified the rule as set
forth in Mitchell. Code § 20-107.3 provides:
A. Upon decreeing the dissolution of a
marriage . . . the court, upon request of
either party, shall determine the legal
title as between the parties, and the
ownership and value of all property, real or
personal, tangible or intangible, of the
parties and shall consider which of such
property is separate property, which is
- 7 -
results, the trial court should choose the valuation date which
is most likely to provide the most current and accurate
information available and thus lead to an equitable award.
Shooltz v. Shooltz, 27 Va. App. 264, 271, 498 S.E.2d 437, 440
(1998); see also Code § 20-107.3. "'The value of the assets
determined as near as practicable to the date of trial will
usually be the most current and accurate value available.'"
Gaynor v. Hird, 11 Va. App. 588, 593, 400 S.E.2d 788, 791 (1991)
(quoting Mitchell, 4 Va. App. at 118, 355 S.E.2d at 21)). On
appeal, we review the court's determination of a valuation date
marital property, and which is part separate
and part marital property in accordance with
subdivision A 3. The court shall determine
the value of any such property as of the
date of the evidentiary hearing on the
evaluation issue. Upon motion of either
party made no less than twenty-one days
before the evidentiary hearing the court
may, for good cause shown, in order to
attain the ends of justice, order that a
different valuation date be used . . . .
- 8 -
for abuse of discretion. Shooltz, 27 Va. App. at 271, 498 S.E.2d
at 440.
In the case at bar, the parties separated in February 1998
and the equitable distribution hearing occurred three years
later, in 2001. The trial court granted wife's motion to value
the company as of February 1998 and assigned Cooper Management a
value of $260,000. We find the ruling to be an abuse of
discretion because the record shows that the company's value in
February 1998 was not the most accurate and current information
available.
Although the company's value in February 1998 was
approximately $260,000, its value was zero as of February 2001.
In 1999, the company incurred a debt to its bank on a line of
credit in the amount of $200,000, had a judgment entered against
it for $104,271 by an employee, and suffered the loss of several
key employees, who took many of Cooper Management's clients with
them. Husband ceased working for the company on November 1,
2000, when he began a new job with Common Ground. Thus, by the
date of the equitable distribution hearing, in March 2001, the
company had ceased doing business and was insolvent; its total
liabilities were estimated at $460,000. There was no evidence
before the trial court that Cooper Management had the capacity to
generate income in the future; it no longer had employees and the
company's founder and president, husband, was working elsewhere.
Moreover, the trial court noted in its equitable distribution
award that the company's financial downfall resulted, in part,
from both parties' financial mismanagement. Thus, the valuation
date adopted by the trial court, viz. the date of the parties'
- 9 -
separation, was not one of "just and fair results," nor was it
"most likely to provide the most current and accurate information
available." Accordingly, we find the trial court abused its
discretion in valuing the company on the date of the parties'
separation.
We reverse and remand the case to the trial court on the
foregoing issues for an equitable distribution award consistent
with this opinion.
Reversed and remanded.
- 10 -
COURT OF APPEALS OF VIRGINIA
Present: Judges Elder, Annunziata and Agee ∗
Argued at Alexandria, Virginia
JAMES C. THOMAS, JR.
MEMORANDUM OPINION ∗∗ BY
v. Record No. 3297-01-4 JUDGE ROSEMARIE ANNUNZIATA
MAY 20, 2003
SANDRA L. THOMAS
FROM THE CIRCUIT COURT OF FAIRFAX COUNTY
Robert W. Wooldridge, Jr., Judge
James C. Thomas, Jr., pro se
(Oliver Denier Long; EZ Justice, PLC, on
brief), for appellant.
(Sandra L. Thomas, pro se, on brief).
Appellee submitting on brief.
James C. Thomas, husband, appeals the trial court's
equitable distribution award on the following grounds: 1) the
trial court failed to consider the full extent of wife's marital
waste; 2) the trial court failed to consider the costs husband
incurred to maintain mortgages on marital property after the
couple's separation; 3) the trial court erred when it imputed
greater income to husband than his salary, failed to impute
income to wife and failed to conclude she voluntarily
impoverished herself; 4) the trial court erred in awarding wife
attorney's fees; 5) the trial court failed to impute a negative
non-monetary contribution to wife; and 6) the trial court erred
∗
Justice Agee participated in the hearing and decision
of this case before his investiture as a Justice of the Supreme
Court of Virginia.
∗∗
Pursuant to Code § 17.1-413, this opinion is not
designated for publication.
- 11 -
when it reopened the record after the equitable distribution
hearing to permit wife to introduce additional evidence. For the
reasons that follow, we affirm the trial court's decision as to
these issues. 5
Background
On appeal, we view the facts in the light most favorable to
Sandra Thomas, wife, the party prevailing below, together with
all reasonable inferences that may be drawn. Richardson v.
Richardson, 30 Va. App. 341, 349, 516 S.E.2d 726, 730 (1999). So
viewed, the evidence establishes that the parties married on
January 23, 1983, separated on February 1, 1998 and divorced on
November 4, 2001. They had two children, Alexander, born on June
11, 1984, and Kelly, born on June 15, 1986.
While the parties were married, husband founded and operated
his own business, Cooper Management Institute ("Cooper
Management"). Wife worked for Cooper Management in an
administrative capacity during the marriage.
The parties repeatedly used Cooper Management's working
capital to pay personal obligations. Their conduct resulted in
significant tax liabilities and depleted the assets of the
company. Cooper Management ceased doing business after the
parties' separation. The trial court found that the company's
economic failure was attributable to both parties' financial
5
A published opinion issued simultaneously addresses
husband's contention that the trial court erred when it
determined his use of marital funds to pay court-ordered
pendente lite spousal support was error and that the trial court
erred in using the date of separation to value the parties'
business. On those issues, we agreed with husband and reversed
and remanded the case to the trial court for an equitable
- 12 -
mismanagement and the subsequent departure of several employees.
After the parties separated, husband became a consultant
with Common Ground Seminars, Inc. and earned a salary of $70,000
per year. Wife was unemployed at the time of the parties'
separation but eventually began working part-time, for $8 per
hour. Husband has undergraduate and law degrees. Wife attended
college for one year.
After the close of the equitable distribution hearing on
March 5, 2001, the court held a supplemental hearing, on
September 6, 2001, to take additional evidence regarding a
pension and 401-K fund. The trial court issued its findings and
an equitable distribution award on November 4, 2001, stating:
The court grants the motion of [wife] to
value [Cooper Management] as of the date of
separation. The court determines its marital
property value as of February 1998 to be
$260,000.
* * * * * * *
The court awards [husband] all of the
interest in Cooper Management.
* * * * * * *
[Wife] wrongfully withdrew $23,100 from
Cooper Management . . . . [She] owes
[husband] sixty percent of this amount, or
$19,908 . . . . [Husband] used $54,000 in
marital funds to pay pendente lite spousal
support. [Wife] is entitled to fifty percent
. . . or $27,000. Therefore . . . [husband]
owes Wife $13,140 . . . .
* * * * * * *
For the purposes of spousal support, I impute
income to [husband] of $140,000 . . . [and]
order that [husband] pay [wife] $2,500 in
monthly spousal support.
distribution award consistent with our opinion.
- 13 -
* * * * * * *
The court awards [wife] $15,000 in attorney's
fees. Sixty percent of the $15,000 she
withdrew from Cooper Management . . . is a
credit to [husband] on that sum.
Analysis
I. Standards of Review
In reviewing an equitable distribution award
on appeal, we have recognized that the trial
court's job is a difficult one, and we rely
heavily on the discretion of the trial judge
in weighing the many considerations and
circumstances that are presented in each
case. A decision regarding equitable
distribution . . . will not be reversed
unless it is plainly wrong or without
evidence to support it.
Gilman v. Gilman, 32 Va. App. 104, 115, 526 S.E.2d 763, 768
(2000) (internal citations and quotations omitted). Moreover,
"[t]he credibility of the witnesses and the weight accorded the
evidence are matters solely for the fact finder who has the
opportunity to see and hear that evidence as it is presented."
Sandoval v. Commonwealth, 20 Va. App. 133, 138, 455 S.E.2d 730,
732 (1995). In fashioning an equitable distribution award, the
trial court must consider each of the statutory factors, but may
6
determine what weight to assign to each of them. Booth v.
Booth, 7 Va. App. 22, 28, 371 S.E.2d 569, 573 (1988). In
challenging the court's decision on appeal, the party seeking
reversal, in this case, husband, bears the burden of
demonstrating error on the part of the trial court. D'Agnese v.
6
Code § 20-107.3(E) lists the factors a court must consider
when determining the amount of a division of marital property
and includes in subsection (2) the "contributions, monetary or
non-monetary, of each party in the acquisition and care and
maintenance of such marital property of the parties."
- 14 -
D'Agnese, 22 Va. App. 147, 153, 468 S.E.2d 140, 143 (1996)
(citing Lutes v. Alexander, 14 Va. App. 1075, 1077, 421 S.E.2d
857, 859 (1992)).
II. Marital Waste
Prior to the couple's separation, wife withdrew $117,850 of
marital funds from the Cooper Management account. The trial
court treated $38,100 of the sum as waste and credited husband
with 60% of the amount. 7 Husband contends the trial court erred
in not treating the entire amount, $117,850, as waste. We
disagree.
7
The trial court found the following withdrawals by
wife improper: $15,000 to pay her attorney's retainer; $10,000
as salary for her work at Cooper Management; and $13,100 she
paid to her son, Ryan, which eventually was deposited in her
separate account.
- 15 -
Waste occurs "where one spouse uses marital property for his
own benefit and for a purpose unrelated to the marriage at a time
when the marriage is undergoing an irreconcilable breakdown."
Smith v. Smith, 18 Va. App. 427, 430, 444 S.E.2d 269, 272 (1994).
Funds used for a proper purpose, such as living expenses or
attorney's fees or "other necessities of life while the parties
are separated," do not constitute marital waste. Anderson v.
Anderson, 29 Va. App. 673, 694-95, 514 S.E.2d 369, 380 (1999).
Wife provided the court with bank statements and cancelled
checks from the couple's joint checking account, totaling in
excess of $100,000, which establish that wife used the withdrawn
funds for "necessities of living." A review of the checks wife
submitted shows expenditures for prescription drugs, medical
treatment, children's tuition, sports and equipment, tutoring,
credit card payments, utilities, food, home maintenance, holiday
expenses, postage, dry cleaners, Girl Scouts, entertainment, pet
care, subscriptions, clothing and mortgage payments. The trial
court was free to accept wife's testimony regarding her use of
the funds and, when coupled with the submitted checks, we cannot
say that there was no evidence to support the trial court's
finding that wife did not waste the marital funds other than
those previously credited to husband. See Sandoval, 20 Va. App.
at 138, 455 S.E.2d at 732. Thus, the record supports the trial
court's decision that $79,750 of the $117,850 wife withdrew from
Cooper Management was not marital waste. See Alphin v. Alphin,
15 Va. App. 395, 403, 424 S.E.2d 572, 576 (1992).
III. Mortgage Payments and Home Improvements
Husband contends the trial court improperly failed to
- 16 -
consider the costs he incurred to maintain mortgages and improve
marital property after the parties' separation. He argues wife
bore some of the responsibility for those obligations yet paid
none of them. We find no error in the trial court's rulings on
this issue.
Husband provided the court with photographs of the marital
home, which purportedly showed improvements he made and paid for
after wife left the home. The photographs, however, were
undated, digital reproductions. The trial court was free to
determine that they either reflected no discernible improvements,
or that they were not accurate portrayals of the home after
wife's departure. Husband also testified that the debt he
incurred was the result of improvements he made to the home.
Other than general credit card statements, which do not itemize
the alleged improvements, husband offered no evidence that the
funds were used for the claimed improvements. With respect to
husband's claim that he paid wife's mortgage obligations, husband
presented no evidence whatsoever to support his contention.
In short, the evidence, viewed in the light most favorable
to wife, does not support husband's contention that he made
payments for the care and maintenance of the marital home, for
which he should have received credit, or that he paid wife's
mortgage obligations. Thus, we find the trial court properly
excluded the purported payments from consideration in the
equitable distribution award.
IV. Imputation of Income
Husband next asserts that, for the purposes of awarding
spousal support, the trial court erroneously imputed income to
- 17 -
him that was greater than his current salary. The court found
husband voluntarily underemployed and fixed his income at
$140,000 per year, $70,000 more than his salary at the time. He
contends the court erroneously failed to consider current
circumstances and those "within the immediate or reasonably
foreseeable future." Srinivasan v. Srinivasan, 10 Va. App. 728,
735, 396 S.E.2d 675, 679 (1990). He argues there is no evidence
he earned $140,000 in the past and no evidence to support a
finding that the figure reflected the income he would enjoy in
the immediate future. We disagree.
The parties' tax forms establish that husband earned
$391,450 in 1990 and $492,513 in 1997. Additionally, husband has
a law degree and extensive business experience in the seminar
field, as founder and president of Cooper Management, a marketing
and seminar company, and as an employee with Common Ground. We
thus hold that the record supports an imputed income in the
amount of $140,000.
- 18 -
Husband further asserts the trial court erred in failing to
impute income to wife and to conclude she voluntarily
impoverished herself. He argues that, in the early years of
their marriage, wife earned an annual salary of approximately
$36,000, held a real estate license, and worked as a property
manager. He contends she worked part-time at Cooper Management
as an administrator and bookkeeper and ultimately acquired and
managed a full staff. Husband argues wife made no effort to find
comparable full-time employment after she left Cooper Management.
A "refusal to impute income will not be reversed unless
plainly wrong or unsupported by the evidence." Blackburn v.
Michael, 30 Va. App. 95, 102, 515 S.E.2d 780, 784 (1999).
Furthermore, "[t]he burden is on the party seeking imputation to
prove that the other [party] was voluntarily foregoing more
gainful employment, either by producing evidence of a higher-
paying former job or by showing that more lucrative work was
currently available." Niemiec v. Dep't of Soc. Servs., 27 Va.
App. 446, 451, 499 S.E.2d 576, 579 (1998) (citations omitted).
In the case at bar, the trial court found that husband
offered no evidence regarding jobs that "may be available to
[wife] and what salaries they may provide." In addition, the
court accepted wife's testimony that she never earned a salary of
$36,000, that she did not hold a real estate license, and that
she never held the title "bookkeeper" at Cooper Management, where
her duties were "largely administrative." "The credibility of
the witnesses and the weight accorded the evidence are matters
solely for the fact finder who has the opportunity to see and
hear that evidence as it is presented." Sandoval, 20 Va. App. at
- 19 -
138, 455 S.E.2d at 732.
The trial court further determined that wife's experience
dating from the 1980s was too remote in time to be relevant to
the determination of her income in 2001. See Brody v. Brody, 16
Va. App. 647, 651, 432 S.E.2d 20, 22 (1993) (finding a trial
court may impute income based on evidence of recent past
earnings). Thus, the court fixed wife's income at $8 per hour,
her most recent wage, or $16,640 annually. Given the evidence
regarding the parties' respective job experience and future
prospects, we find the trial court did not err in its decision.
V. Attorney's Fees
Husband contends the trial court abused its discretion when
it awarded attorney's fees to wife, on the ground that she failed
to support her fee affidavit with expert testimony establishing
the reasonableness of the attorney's hourly rates and legal
services rendered. We disagree.
An award of attorney's fees is within the sound discretion
of the trial court, Wilkerson v. Wilkerson, 214 Va. 395, 398, 200
S.E.2d 581, 584 (1973), and is not to be disturbed on appeal
absent an abuse of discretion. Ingram v. Ingram, 217 Va. 27, 29,
225 S.E.2d 362, 364 (1976). The key to a proper award is
reasonableness under all the circumstances. McGinnis v.
McGinnis, 1 Va. App. 272, 277, 338 S.E.2d 159, 162 (1985).
Moreover, the party seeking fees is not required to proffer
expert testimony on the reasonableness or accuracy of those fees
in all cases. See Seyfarth, Shaw v. Lake Fairfax Seven, Ltd.,
253 Va. 93, 96-97, 480 S.E.2d 471, 480 (1997).
In this case, wife provided the trial court with a detailed
- 20 -
billing statement, which documented her attorney's fees and
specifically set forth the charges and a description of services
rendered for the billed hours. The statement reflected that wife
incurred over $140,000 in attorney's fees. Viewing this evidence
in the light most favorable to wife, we find wife was not
required to proffer an expert witness to establish the
reasonableness of the fees and services provided, and we affirm
the trial court's award of $15,000 in attorney's fees.
VI. Negative Non-Monetary Contribution
Husband argues the trial court should have imputed a
negative non-monetary contribution to wife based on her conduct
before the separation. Specifically, he argues her conduct in
"bleeding Cooper Management of operating capital, secreting its
operating ledger, threatening employees, and terminating her
employment" were negative economic and non-economic contributions
to the marital estate, which the trial court erroneously failed
to consider as a factor in making its decision. See Joynes v.
Payne, 36 Va. App. 401, 430, 551 S.E.2d 10, 24 (2001) (upholding
a trial court's negative non-monetary contribution determination,
where the evidence established wife's conduct in terminating her
employment was a leading factor in dissolution of marriage and
had an effect on marital assets).
The evidence does not support husband's contention that wife
was responsible for the financial collapse of Cooper Management.
In fact, the trial court found both parties at fault in the
company's financial mismanagement and stated "there is no
evidence" that wife's actions led to the "financial ruin" of
Cooper Management. Finding no evidence to the contrary, we
- 21 -
affirm.
VII. Supplemental Hearing
Husband argues the trial court erred when it re-opened the
record for a supplemental hearing and allowed wife to present
additional evidence regarding the parties' pension and 401-K
funds. He contends wife had the current information on the funds
before the trial. See Williams v. People's Life Ins. Co., 19 Va.
App. 530, 532, 452 S.E.2d 881, 883 (1995) (finding that the
prerequisites for re-opening a trial record include: 1) the
evidence was obtained after the hearing and 2) it could not have
been obtained prior to the hearing through the exercise or
reasonable diligence). We disagree.
A decision "to hear additional evidence is within the sound
discretion of the trial court." Calvin v. Calvin, 31 Va. App.
181, 184, 522 S.E.2d 376, 378 (1997) (citing Rowe v. Rowe, 24 Va.
App. 123, 144, 480 S.E.2d 760, 770 (1997)); see also Morris v.
Morris, 3 Va. App. 303, 307, 349 S.E.2d 661, 663 (1986). Wife
made a demand on husband before the equitable distribution
hearing for supplementation of his discovery responses so that
wife could have the most current values of the parties' pension
and 401-K. Husband failed to supplement his responses. At
husband's deposition, on February 26, 2001, wife did not have the
current values and, therefore, was limited in her discovery of
the values of those marital assets. Husband's counsel refused to
contact the fund administrator to establish the current values
for the purposes of equitable distribution. At that time, he
stated he would provide the details to wife at trial. Wife never
received the current values and relied on old values when
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completing her Pension Disclosure Sheet for equitable
distribution. Thus, the record establishes that wife justified
holding a supplemental hearing to determine the exact amount of
money contained in the pension and 401-K funds because husband
improperly failed to provide her with the relevant financial
details on numerous occasions. Therefore, the trial court did
not abuse its discretion in reopening the hearing.
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VIII. Conclusion
In summary, we find the trial court did not err in 1)
determining wife's use of marital funds was not waste; 2) not
considering alleged costs husband incurred to maintain mortgages
on marital property after the couple's separation and to improve
the property; 3) imputing income to husband, but not wife; 4)
awarding wife $15,000 in attorney's fees; 5) not imputing to wife
a negative non-monetary contribution; and 6) re-opening the
record after trial to permit wife to introduce additional
evidence. Accordingly, we affirm the decision of the trial court
as to these issues.
Affirmed.
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