Erica Wayne Barton v. Mechelle Scholmer Barton

This is an appeal of a trial court’s valuation of a marital asset, division of a marital estate, and award of alimony in solido as a result of the divorce of Eric Wayne Barton (“Husband”) and Mechelle Scholmer Barton (“Wife”). In its 2018 Final Judgment of Divorce (“2018 Judgment”), the Chancery Court for Blount County (“the Trial Court”) found that Husband’s 100% interest in Vanquish Worldwide, LLC, (“Vanquish Worldwide”) was marital property and that Vanquish Worldwide’s outstanding claim for potentially $32 million against the U.S. Government (“Government Claim”) was marital property. The Trial Court accordingly awarded to Wife a portion of the Government Claim. In Husband’s first appeal, this Court reversed the Trial Court’s finding that the Government Claim was marital property and its awarded portion to Wife. This Court, concluding that the Government Claim was nevertheless relevant to an accurate valuation of Vanquish Worldwide and the total value of the parties’ marital business interests, instructed the Trial Court on remand to revalue Vanquish Worldwide, and in doing so, to consider the Government Claim. On remand, the Trial Court found that Husband had dissipated $12.375 million of the Government Claim proceeds by using the funds to satisfy a personal judgment against him. The Trial Court accordingly added the dissipated $12.375 million to its $4 million valuation of Vanquish Worldwide. Husband has appealed, contesting the Trial Court’s consideration of the Government Claim proceeds in its valuation of Vanquish Worldwide, as well as its overall division of the marital estate, award of alimony in solido, and placement of a lien and an assignment in trust to Wife on Husband’s ownership interests in his numerous LLCs, including Vanquish Worldwide. We affirm the Trial Court’s finding that Husband dissipated marital property and its valuation of Vanquish Worldwide but modify the Trial Court’s judgment to the extent it awarded interest on Wife’s award of alimony in solido. The balance of the Trial Court’s judgment is affirmed, including its division of the marital estate and award of alimony in solido to Wife. We further decline to award Wife attorney’s fees on appeal.