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While I'm not entirely sure how she was able to go finalize the divorce in another county with your husband having any knowledge, I know that if she lied enough to the court, it's possible.
That being said, your husband would now need to go to the court that issued the FINAL court order in VA in order to ask for physical custody to be legally given to him.
I do not know that he legally must release the child back into the custody of anybody but the mother, unless the court order specifically names the grandfather as a proxy for the mother. Depending on the length of her possible incarceration, it will likely be worth it to get the decree modified anyway, especially if he is paying child support.
I highly suggest contacting a lawyer in the county where the final order was decided. They will be able to review the divorce decree and give your husband specific insight into what he can or cannot do. Many attorneys offer a free consultation for this purpose.