Christian A. Von Hassell v. Elizabeth Von Hassell
0414164
| Va. Ct. App. | Nov 15, 2016Background
- Parties married in 1993; husband founded Repton (a finance business) in 1989 and owned ~97.5% at marriage; wife left workforce after first child and the family relied primarily on Repton income.
- Parties separated in February 2014; wife sued for divorce, support, equitable distribution, and fees; pendente lite order required husband to pay spousal and child support and awarded attorney fees.
- Trial court (after an evidentiary hearing) classified marital estate to include the NY co-op, three vehicles, and husband’s 97.5% interest in Repton; treated personal property held by each party as that party’s separate property.
- Trial court found insufficient evidence to value Repton’s assets/goodwill but nevertheless awarded husband sole ownership of Repton and allocated all marital debt (~$249,000) to husband to “compensate” wife for her interest.
- Court fixed wife’s income at $85,000 and husband’s income by averaging reported distributions from Repton (rejecting many claimed business deductions), set spousal support at $3,000/month, found husband in contempt for pendente lite arrears, and ordered jail if arrearage unpaid but initially stated statutory limitation did not apply.
- On appeal the Court of Appeals affirmed in part, reversed in part, and remanded: it reversed the personal-property ruling as to items wife possessed, remanded valuation/distribution of Repton for clarification, remanded spousal support in light of equitable-distribution remand, and directed limited correction of the contempt order to reflect the 12-month statutory cap.
Issues
| Issue | Husband's Argument | Wife's Argument | Held |
|---|---|---|---|
| Classification of personal property in wife’s possession | Items husband acquired pre-marriage are his separate property and must be returned | Items are separate in current possession (or belong to children/trust) and court may let each keep what they possess | Reversed: trial court erred treating contested items in wife’s possession as her separate property; remand to adjudicate each item individually to determine whether still husband’s separate property or was divested/placed in trust |
| Classification, valuation, and distribution of Repton | Repton was pre-marital/separate; trial court erred classifying it marital and assigning debt to husband to “compensate” wife | Repton is marital to the extent goodwill attributable to marital effort; wife sought distribution but presented limited valuation evidence | Issue not preserved re: initial classification (waived). Trial court erred or reached irreconcilable findings on valuation vs compensation; remanded to determine whether Repton has an ascertainable value and, if so, specify amount allocated to wife (or state no distributable value) |
| Calculation of husband’s income for spousal support (business expense deductions) | Court ignored legitimate, reasonable business expense deductions; income overstated, ability to pay support misstated | Husband’s expense claims were unsupported/double-counted; court properly discredited them | Affirmed: trial court did not abuse discretion in rejecting husband’s expense claims as incredible and excluding them from income; spousal support remanded for re-evaluation if equitable-distribution outcomes change income/needs |
| Contempt order and jail term (future/imprisonment length/due process) | Future conditional jail term violates due process and indefinite confinement exceeds 12-month statutory limit | Husband had full due process at contempt hearing; conditional confinement is lawful civil contempt but must conform to statutory cap | In part affirmed and remanded: due process was satisfied; but trial court erred in stating the statutory 12-month limit did not apply — remand to modify order to state confinement "until paid but in no event exceed twelve months." |
Key Cases Cited
- Niblett v. Niblett, 65 Va. App. 616, 779 S.E.2d 839 (Va. Ct. App. 2015) (appellate-review standard for factual findings — view evidence in favor of prevailing party below)
- Wiencko v. Takayama, 62 Va. App. 217, 745 S.E.2d 168 (Va. Ct. App. 2013) (standard for reviewing equitable distribution awards)
- Marion v. Marion, 11 Va. App. 659, 401 S.E.2d 432 (Va. Ct. App. 1991) (three-stage process: classify, value, distribute marital property)
- Frazer v. Frazer, 23 Va. App. 358, 477 S.E.2d 290 (Va. Ct. App. 1996) (reasonable business expenses deductible when computing income for support)
- Robinson v. Robinson, 46 Va. App. 652, 621 S.E.2d 147 (Va. Ct. App. 2005) (need to re-examine spousal support when equitable-distribution award is modified on remand)
- Street v. Street, 24 Va. App. 14, 480 S.E.2d 118 (Va. Ct. App. 1997) (due process protections required before contempt punishment for failure to pay support)
