Ask your attorney to put the matter on the docket for a short hearing (less than one day). ALso ask for an award of attorneys fees from your wife. Caving in to her position will most likely have a negative impact on your children's lives as well as your own in trying to effectively parent them. This isn't 'blackmail' as that is defined- it's a way of trying to get you to agree to something that most likely isn't in your children's best interests. There is nothing illegal in her position that she is unwilling to sign 'the divorce papers'- unclear what that means. If you mean that you offered her a Marital and Property Settlement Agreement and she has refused that, that is within her rights. If you mean that she is refusing to sign a Final Decree, after the MPSA has been signed, notarized and offered to the Court, then just a quick confirmatory hearing is all that is needed and should be capable of being scheduled before summer begins in Prince WIlliam Circuit Court. If nothing has been signed or agreed to by her, then you will need to litigate. Make sure that your attorney is a litigator and not just one who does only un-contested divorces.
Legal issues often depend on the specific facts in any given case or situation. Please do NOT utilize the information you receive as either a binding legal opinion in your case, nor presume that I am your counsel because I've answered a question you had. Any legal representation is accomplished by written contract ONLY, signed by each of us.
There are not really any ramifications for her remarks other than they may be used for attorney fees if the matter is required to be set for trial in front of a judge. Unfortunately for you, if the case is pending in Prince William County, which I assume it is since you are from Manassas, Virginia, the docket is extremely backed up. Trial dates are currently being scheduled in November/December 2014.
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