Is husband’s refusal to pay for health insurance under a separation agreement after wife remarries contempt of court in Virginia?
The Virginia Court of Appeals in the case of McCoy v. McCoy, No. 3087-08-3 (January 12, 2009) http://www.courts.state.va.us/opinions/opncavwp/3087083.pdf , upheld the trial court’s decision that the husband’s refusal to pay for health insurance under a separation agreement after the wife remarried was in contempt of the court’s order.
The husband and wife entered into a separation agreement or property settlement agreement with a number of different sections. In one section, there was a mutual waiver of spousal support by the parties, with a condition to wife’s waiver that husband perform all his obligations under the agreement and a provision that the husband could not discharge his obligations in bankruptcy. In another section, husband assumed responsibility for the payment of certain debts, including the mortgage. In still another section, husband agreed to maintain health insurance coverage for the wife until she obtained employment offering comparable insurance.
The husband and wife were divorced in Virginia and the separation agreement was incorporated into the final decree of divorce. Five years later, the husband stopping paying for the wife’s health insurance coverage. The wife paid the premiums to maintain coverage and remarried approximately a year and half later. The wife filed a motion to show cause against the husband for failure to provide health insurance. The Virginia divorce court judge held that the health insurance was not spousal support which would terminate upon wife’s remarriage and that husband was in contempt of court for failing to cover wife. The husband was sentenced to six months in jail, the imposition of which was suspended by the divorce court judge to give husband the opportunity to purge himself of contempt by paying wife back for the premiums she paid, providing health insurance for wife again, and paying for wife’s attorney’s fees and costs. The husband appealed this contempt order and moved the court to vacate its order. The trial judge subsequently granted husband’s motion to vacate its order.
The Virginia Court of Appeals first noted that the trial court lacked jurisdiction, or the power to decide, to vacate its order once husband filed an appeal. The court also noted that both parties (and the trial court) found the separation agreement was unambiguous, but disagreed on its meaning. The Virginia Court of Appeals agreed with wife’s interpretation of the separation agreement that health insurance was not spousal support terminated by her remarriage because it was in a different section than spousal support with several sections in between, and because health insurance coverage was due immediately upon signing the agreement, unlike spousal support which only became due if husband breached the agreement or filed bankruptcy. Although a divorce court judge could not unilaterally order a husband to provide health insurance coverage to his wife upon divorce under Section 20-107.1 http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+20-107.1 or Section 20-107.3 http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+20-107.3 of the Code of Virginia, in this case, the parties had agreed to coverage in a property settlement agreement. The Court of Appeals recognized that a divorce court judge is required to give effect to the terms of a valid separation agreement or property settlement agreement between the parties under Section 20-109.1 of the Code of Virginia: http://leg1.state.va.us/cgibin/legp504.exe?000+cod+20-109.1 . Since the husband’s obligation to maintain health insurance on his wife was not spousal support, it did not terminate upon her remarriage under Section 20-109 of the Code of Virginia: http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+20-109 .
You should consult with your Virginia divorce lawyer regarding how to structure your separation agreement or property settlement agreement in accordance with your wishes.