Wilson v. Wilson

227 W.Va. 157 (2010)

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Nature of the Case

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Facts

H and W were married in 1990 and separated on May 31, 2005. They had no children as part of the marriage. They formed Hunter Company of West Virginia to conduct real estate development; each party separately owned one half of the stock. Hunter had a management agreement with National Land Partners. Hunter's duties are to identify property that would qualify for development, and complete due diligence and feasibility studies to determine if NLP should purchase the property. If NLP purchases the property, Hunter then conducts engineering and design work, obtains all permits and subdivision approval, and oversees the construction of the infrastructure. Upon completion of the road system and utilities, Hunter then hires a sales force, conducts advertising, marketing, and other promotions, sells all of the building lots, and oversees the closings of properties with the attorneys. Hunter is paid a management fee which is defined as any 'net profit' remaining after twelve-and-one-half-percent of the gross sales are paid to NLP and all other expenses are paid. If NLP's preferential payment of twelve-and-one-half-percent exceeds the total net profit, Hunter receives no compensation. In 2005 W filed for divorce. At the time of the parties' separation, Hunter was the manager of six real estate development projects for NLP at various stages of completion. W was no longer involved in Hunter's business at that time. The sole issue in contention that was litigated before the family court was the valuation of Hunter's manager fees on the projects that existed at the date of separation for purposes of equitable distribution. The trial court accepted the testimony of W's expert on the value of these assets. The family court entered a final order and concluded that Hunter possessed 'enterprise goodwill,' which was subject to equitable distribution. The family court then ordered Mr. Wilson to pay Ms. Wilson the additional sum of $4,914,582.50 and awarded judgment in that amount. H thereafter filed a motion for reconsideration with the family court which was denied. H then filed an appeal with the Circuit Court of Berkeley County. The circuit court reversed the final order of the family court. The circuit court found that the net marital estate at the time of separation was $6,886,304.00, an amount lower than a prior stipulated amount by the parties. The circuit court then found that W's prior receipt of an advanced payment towards equitable distribution in the amount of $4,337,438.00 resulted in an overpayment of $894,286.00. The circuit court then ordered W to pay H that amount with interest within thirty days. The circuit court also remanded the case to the family court to exercise continuing jurisdiction over the projects known as The Point and WestVaco. In doing so, the circuit court ordered that upon completion of those projects, the family court shall affect a supplemental equitable distribution.