In the case of Plaisted v. Plaisted, the Virginia Court of Appeals, in an unpublished opinion, ruled that the trial court erred in ordering husband to transfer a one percent interest in his membership interest in a commercial real estate partnership to wife.
Husband first argues that “no authority exists” for the circuit court to order him to transfer his solely owned membership interest in Wellesley Centre, LC (“Wellesley”) to wife. Husband purchased a three percent interest in Wellesley, a commercial real estate partnership, during the marriage. The interest is titled in husband’s name alone. The circuit court classified Wellesley as hybrid property and ordered that husband shall receive two percent of the Wellesley interest and the remaining one percent interest shall be transferred to wife. Husband cites Code § 20-107.3(C), which provides in part, Except as provided in subsection G [pertaining to pensions, deferred compensation, and retirement benefits], the court shall have no authority to order the division or transfer of separate property or marital property, or separate or marital debt, which is not jointly owned or owed. The court may, based upon the factors listed in subsection E, divide or transfer or order the division or transfer, or both, of jointly owned marital property, jointly owed marital debt, or any part thereof. The statute is clear. Husband is correct that the circuit court did not have the authority to order husband to transfer a one percent interest in Wellesley to wife pursuant to Code § 20-107.3(C).
-Rob Hagy. For help with your divorce related real estate questions, please contact me at (434)293-4562 or email me at email@example.com.