Equitable Distribution of a Jointly-Titled Corporation

In the 2014 Virginia case, Weedon v. Weedon, the court addressed the issue of equitable distribution of a jointly-titled corporation in a divorce proceeding.  In this case, the trial court gave the corporation to the wife, but ordered the corporation to pay $83,959 to the husband.  However, even after the court’s ruling, the corporation did not pay the husband any amount. 

 

Judgment Against Corporation

Therefore, the husband sought a judgment against the wife (and not the corporation) in the amount of $83,959.  The trial court ultimately granted this judgment.  The wife appealed the decision and stated that the trial court lacked the jurisdiction to change its award more than 21 days after entry of the final order. 

 

Personal Judgment Against Wife

After the wife’s appeal, the Court of Appeals reversed the trial court’s ruling that granted a personal judgment against the wife to satisfy the corporation’s obligation to the husband.  The Court of Appeals found that §20-107.3(K) of the Virginia Code does allow a trial court to enter orders more than 21 days after the entry of the final order to enforce its order.  However, they found that in this case, the trial court’s order substantively changed the provisions of the final order by awarding the husband a personal judgment against the wife even though the corporation was the entity that owed him money.  Therefore, the court found that the trial court exceeded its authority.