Earl F. Layman v. Dorothy J. Layman
62 Va. App. 134
Va. Ct. App.2013Background
- Married in 1952, separated in 2010; real property at issue comprised inherited 1/2 and purchased 1/2 from the Layman lineage, titled solely in husband’s name.
- Husband inherited his 1/2 from his father; wife’s 1/2 was acquired by husband in 1956.
- Five deeds of trust (1959, 1969, 1972, 1976, 1992) were secured by all of the estate and used to obtain loans for marital purposes.
- Loans were used to build a marital residence and two chicken houses; some loans were repaid with marital funds; the record omits how proceeds from 1969 and 1992 loans were used.
- Trial court equitably distributed assets, treating the inherited property as marital due to use of loans secured by it and repaid with marital funds; appellate court recognized the dispute over transmutation and held error in classification.
- This appeal challenges whether repaying loans secured by separate property with marital funds transmuted that property into marital property; court reverses and remands.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether repaying loans secured by separate property with marital funds transmuted the property | Layman: inherited property separate; repayment increases equity in that property | Layman: debt discharge increases value of encumbered property | No transmutation; inherited property remains separate; remand for proceedings consistent with opinion |
Key Cases Cited
- Gilman v. Gilman, 32 Va. App. 104 (2000) (pledge of separate property to secure loan; repayment affects acquisition property)
- Street v. Street, 25 Va. App. 380 (1997) (credibility and weight of testimony (en banc))
- McDavid v. McDavid, 19 Va. App. 406 (1994) (abuse of discretion standard for equitable distribution)
- von Raab v. von Raab, 26 Va. App. 239 (1997) (abuse of discretion standard for equitable distribution)