In the case of Linton v. Linton, the Virginia Court of Appeals, in an unpublished opinion, upheld the decision of the trial court that ordered wife to transfer her separately titled limited partnership interest to satisfy a monetary award to husband. The parties entered into a property settlement agreement which was filed in the circuit court. The parties agreed that wife’s separately titled 49% limited partnership interest in CRL Partnership, LP was marital property having a fair market value of $768,862.50. They also agreed that husband was entitled to a monetary award of $384,431.25. The agreement permitted the parties to later contest how wife could satisfy that award. At the hearing on this issue, wife wanted to convey one-half of her limited partnership interest to the husband in satisfaction of this award. The husband did not want to receive her half interest in satisfaction of this award, even though the amount of her interest is equal to the stipulated award of $384,431.25. Nonetheless, the court ordered the wife to transfer and the husband to accept the 24½ percent interest of the Wife in CRL in full satisfaction of the award of his interest in her limited partnership.
Under Code § 20-107.3, the court must determine legal title, ownership, and value of such property, whether that property is separate, marital, or part separate and part marital, as well as the amount of debt. Thereafter, the court, pursuant to Code § 20-107.3(C) may order the transfer or division, or both, of jointly owned marital property or jointly owned marital debt. Code § 20-107.3(C) specifically prohibits the court from dividing or transferring property which is not jointly owned. This is the section upon which appellant relies. However, Code § 20-107.3(D) gives the court additional authority to grant a monetary award, which may be paid either in a lump sum or over a period of time in fixed amounts. In this context, the statute provides, “The party against whom a monetary award is made may satisfy the award, in whole or in part, by the conveyance of property, subject to the approval of the court.” The only limitation is that the court must approve the conveyance.
Code § 20-107.3(C) applies only to the transfer or division of property without any reference to the satisfaction of a monetary award. A transfer or division of property to satisfy a monetary award would be controlled by Code § 20-107.3(D). These two statutes address completely different situations in the equitable distribution statutory scheme. The trial court correctly noted this distinction. As such, husband’s argument fails.
-Rob Hagy, Charlottesville Divorce Attorney. For help with your divorce and property distribution questions, please contact me at (434)293-4562 or email me at [email protected].
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