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HomeMy WebLinkAbout98-01248 \., I \I ~ ~ ,I ~ VI' ~ ~ \) ~ ~ \ ~ I I ...... . .":) .. ~ ~ ~ ~ ......... . ~I ~! ~' <+:.' <..:'~ -:+:. ,~.;c <+:. "<.:. <+:.. .:.;. ~f ',' .~..:;. ,~.;, <+;. <+:. .:+> .:+;. <+:. <.,;. <+:. <+;. <+> <+> :. <+;.: --:+;.. ..I~' - '~.;',' :.~.;. <+> <+:- <+;. <+:. -';., .' .,~ ... ,:, ~ * ',' ~I ,,. *. ',' w ,,. ~ ... ~ ',' ~ ,,. ~ *. ',' ~ ,,. ~ ... ~ ,,. ~ ,,. ~I ~\l \.~. ~ ',' IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY STATE OF I~' ~.';?f-~" i~~~r5,> ~ PENNA. L''":','.i.'' -:::~:" ~ "~.....~.~~-"'''>T - MARTHA.S.HIIRNER, N().~fl~P4fl qVJ]:LH \<) 98 Plaintiff V ('I'...;t\S . ROBERT. H. HARNER, Defendant ~ ,,. DECREE IN D I V 0 R C E c.::r I~:o ? f'P1. ':f ~ ~ 7 , ,dllflIl it is ordered and ~ ... w ~,' , .. ~ ',' AND NOW, decreed that MARTHA S. HARNER . , , , , , , " plaintiff, . , ., defendant, ~ ~,' and"...." ...... . ROBERT, H,.. .HARNER. are divorced from the bonds of matrimony. ~ ~.~ w ',' ~ ',' * The court retains jurisdiction of the following claims which hove ~ been raised of record in this action for which a final order has not yet ~ been entered; \", ~ ... . None.. ...,.,."." , w ,,. ,', ~ ~ ,.. ,', ~ ~ ,,. All.,!: ~ Pl'othOl\oll\l'Y w. ~,1 ~ ~ :;( ~ ~ ...-...... .. ~...--.' ., :,it:, ':.:. ':+:. ,~:. .:+:' ':+:. ,;+:' .:+:. ,:+;. ~..~,*,.~.,~,~.,~..*,.~~..*.,~.~"~"~.~,.~.~. .I. ~ '/ ,', ~ ~ ',' ~ ',' ~ ',' ~ '.' ,'., ~ ... ~ ,', ~ "i $ ~ 'oj ~ ',' ~ ,,. ~ '.' ~ ',' I,' ~ '.. ,', ~ ~ ,,. (~ I Ii I~ '.' I~ (v ~ '/ ,', \ \: ',' )~ i ,,. ~ I ',' f '~ ',' ~ ',' ~ * ~ * ~ ,/ * ~ :;; ',' * ~ <+;. <+> -:+:.' be the sole and separate property of husband free of any claim by wife. Husband (Jgrees to pay and satisfy, in accordance with those terms, any debts or obligations owed by that corporation or the business with which it operates on which wife may be liable and to indemnify her from any loss, cost or expense caused by his failure to do so, 4. Wife shall transfer to husband by special warranty deed to be delivered at the time for settlement as provided for hereinbelow, all of her right, title and interest in and to the commercial pr'operty improved with a funeral home known and numbered as 1903 Market Street in Camp Hill, Cumberland County, Pennsylvania. Husband shall be responsible to pay and satisfy, in accordance with their terms, any debts or obligations which encumber the title to said property and shall indemnify and save wife harmless from any costs or loss or expense caused to her by his failure to do so, 5, During the marriage the parties each acquired individual retirement accounts with Merrill Lynch. Wife hereby waives and releases any claim to or interest in husband's IRA and confirms that to be the sole and separate property of husband. Wife pre'Tiously liquidated her IRA and husband waives and releases any claim to that asset or its proceeds and confirms them to be the sole and separate property of wife. 6. The parties hold in their joint names an investment account with Merrill Lynch which has a value today of approximately $45,000,00. Husband will execute today a letter directing Merrill Lynch to transfer that account into the sole name of wife and will deliver that to wife or her attorney promptly upon the execution of the affirmation of this agreement, Wife shall be the sole and separate owner of that account and the assets in it from and after today and shall be responsible to manage that account and pay any taxes that may be imposed upon her liquidation or withdrawal of any funds in that account in the future. 7, During the marriage the parties had a joint investment account with Raymond James, which \"as also known as the Passport Investments account. The parties made various withdrawals and disbursements from that account during the marriage and each of them received funds from that account. The parties confirm the funds received by the other to be that party's property and each of the parties waives any further claim to that account or any share of the funds in that account received by the ether. 8. ,At or about the time of separation wife withdrew I' approximately $21,000.00 from accounts held by Myers-Harner Funeral Home, Inc., or oUwrwise aSfwclal:od with that entity, Husband confirms those funds to bo wife's solo and separate property and waives any further claim to those on behalf of himself or the saId corporation. g, Wife is the owner of a 1997 Sebring automobile which had previously been titled in the name of Myers-Harner Funeral l'Iome, Inc. The parties agree that that vehiclo shall be the sole and separate property of wife and husband, for himself and the corporation, hereby waives any interest in or claim to said vehicle. In consideration therefor, wife hereby waives any claim to or interest In any motor vehicles owned or title in the name of husband or Myers-Harner Funeral Home, Inc., specHical.1y includinq a 1994 Jeep Grand Cherokee and any other vehicle owned or titled in the name of the corporation. . , J, .\>' " , . Iii ~ .' , , ,I t1 I 10, Each of the parties lives was insured during the marriage by a policies of insurance issued by the Lutheran Brotherhood Insurance Company and the parties acknowledge that those policies had accumulated cash value as of the date of separation, The parties agree that each of them shall be the owner of those policies, including any cash value which has accumulated in the policies and each of the parties hereby waives any claim to or interest in the policies of insurance held by the other or the cash proceeds of those policies of insurance, 11. Wife is the owner of certain other items of personal ornament. any claim to or interest in those be the sole and separate property items of jewelry, furs and Husband hereby waives items and confirms them to of wife. 12. Husband is the owner of a one-third interest in a Pontoon boat. Wife hereby waives and relinquishes any claim to or interest in said asset and confirms that to be the sole and separate property of husband. 13. During the marriage the parties loaned money to a gentleman named Scott Sprucebank. Wife hereby transfers to husband all of her right, title and interest in and to said debt and the right to collect it and confirms that to be the sole and separate property of husband. 14. Husband is a member of the West Shore Country Club. Wife waives any claim to or interest in that membership and confirms it to be the sole and separate property of husband. 15, Husband shall pay to wifa, at the settlement provided for hereinbelow, the sum of $400,000,00, It is contemplated that husband will raise such funds by refinancing the residence and commercial property and, perhaps, his interest in Myers-Harner Funeral Home, Inc" and that it will take him some reasonable amount of time to arrange the financing. The parties further agree, therefore, as follows: A) Husband shall, within ten days of today's date make formal application for loans necessary to raise such funds with at least two lending institutions. B) As soon as the IEmding is approved and the funds are available, the parUes will meet to conduct a settlement, at which time, wife or her representative will deliver to husband a deed to the residence on Wynnewood Road, a deed to the commercial property on Market Street, and any other docwnents reasonably required to convey those properties and any of the other assets set forth in this agreement that are to go to husband and to waive any claim that she might have in the real estate so as to allow the mortgage settlement to be concluded. C) At such settlement, contemporaneously with the delivery of the deeds and other documents, husband or his representative will pay to wife or her representative the sum of $400,000.00, 0) It is contemplated that these financial arrangements will be in place so that the settlement can be concluded in less than 90 days. The parties agree that they will cooperate with each other and with their attorneys and other representatives and with the mortgage company to accomplish the settlement as soon as practical hereinafter. 16. The parties have previously divided their furniture, appliances and other items of tangible household goods. Each of the parties shall retain those items now in their possession free of any claim from the other and this agreement shall have the same effect as a release and a bill of sale from one party to the other of all such items of tangible personal property now in each party's possession, 17. During the marriage the parties had acquired certain bank accounts either in separate names, joint names, or the name of the corporation, Myers-Harner Funeral Home, Inc., including accounts at Harris Savings Bank, Pennsylvania State Bank, and America funds, I,ach of the parties waives any claim to or interest in any of those accounts now held in the name of the other or in the name of the corporation and confirms those accounts and any funds in them to be the sole and separate property of whoever is the titled owner of the accounts on this date. 18. There is currently pending before this Court an order of alimony pendente lite which obligates husband to make cash payments of alimony pendente lite to wife, The parties agree that, until the settlement provided for herein and until payment is made to wife and the deeds are delivered at that settlement, husband shail continue to make payment of that alimony pendente lite to wife through the Domestic Relations Office. Immediately after settlement, both parties, by their attorneys, will advise the Domestic Relations Office to terminate the order entered in the Domestic Relations Office to docket No, DR 27919 PACES ID No. 814100330, No, 98 - 1248. Wife and husband waive all further claims to spousal support, alimony, or alimony pendente 11te whether they have been raised in this case to date or not. Both parties further waive any claim to counsel fees, costs, expenses, experts witness fees, or the like whether they have been raised in this action up until now or not. 19. The parties acknowledge that they have exchanged extensive information during the pendency of this action, that each of them have filed pretrial statements and engaged in formal and informal discovery. Each of the parties acknowledge they are aware of their right to have the Court decide all of the economic issues raised in their case and have decided, voluntarily, to waive that right and to accept the terms and provisions of this agreement as satisfying and resolving all of the economic issues between them and any economic claim the other has as set forth herein, with the reservation only of claims relating to child support and child custody, 20, Except as herein otherwise provided, each party may dispose of his or her property in any way and each party hereby waives and relinquishes any and all rights he or she may now have or hereafter acquire under the present or future laws of any jurisdiction to share in the property or the estate of the other as a result of the marital relationship including without limitation, statutory allowance, widow's allowance, right of intestacy, right to take against the will of the other, and right to act as administrator or executor in the other's estate. Each will at the request of the other execute, acknowledge, and deliver any and all instruments which may be necessary or advisable to carry into effect this mutual waiver and reiinquishment of all such interest, rights, and claims. it? MR. HARNER: No. MR, ANDES: Are you satisfied that you unders tand it? MR, HARNER: Yes, MR. ANDES: You and I, and I'm sure your wife and her attorney, over the last two weeks have spent a lot ,of time reviewing assets and preparing for the hearing that was scheduled to start this morning; is that correct? MR, HARNER: Yes. MR. ANDES: Are you satisfied that you were aware of what the financial claims are in the case and that there is no unanswered question about those assets and liabilities? MR, HARNER: Yes. MR, ANDES: Knowing all of that, is the agreement that I dictated and that she is typing up, satisfactory to you? MR. HARNER: Yes. MR, ANDES: Do you understand that whether we ever sign a piece of paper or not, we are making a representation to the Court that this is the agreement we have made and we are willing to be bound by it whether it is in writing and signed by you or not? MR. HARNER: Yes, MS, DALEY: Martha, you just hear<;J Mr. Andes go through the details of the settlement; you were present to hear him dictate those, were you not? MS. HARNER: Yes. MS. DALEY: And is that identical to the information that you and I have discussed since we reached our settlement last evening at 10:00 p.m,? MS. HARNER: Yes. MS, DALEY: You and I have had a chance to review all of the financial documents, review tax returns, review reports of experts and the like, do you have any questions about any of the assets that remain unanswered at this point:? MS. HARNER: No. MS. DALEY: Knowing that, you will be bound by the provisions of this agreement forever. There will be no changing your mind about this, that this is a full and final settlement of all claims between the two of you. Are you asking the Court to adopt this as its final order? j.. II MS. HARNER: Yes. 5. Neither PlaintitTnor Defendant is in the military or naval service of the United States or its allies within the provisions of the Soldiers' and Sailors' Civil Relief Act of the Congress of 1940 and its Amendments, 6, PlaintitT avers that there are three children of the parties under the age of 18, namely: A, Joseph Patrick Harner. born March 23, 1981 B. Elizabeth Ashley Harner, born May 10, 1983 C. Katherine Leslie Harner, born May 10, 1983 7. The cause(s) of action and section(s) of Divorce Code under which Plaintiff is proceeding are: A. Section 3301(c), The marriage of the parties is irretrievably broken, After ninety (90) days have elapsed from the date of the filing of this Complaint, Plaintiff intends to file an Affidavit consenting to a divorce, PlaintitT believes that Defendant may also file such an Affidavit. B. Section 3301(d). The marriage of the parties is irretrievably broken. The Plaintiff and Defendant separated on March 4, 1998. 8, There have been no prior actions in divorce between the parties, 9, Plaintiff has been advised of the availability of counseling and that Plaintiff may have the right to request the parties to participate in counseling. 10. The parties may enter into a written agreement with regard to support. custody, visitation of childrell, alimony and property division. In the event that such an agreement is executed by the parties, the agreement may be incorporated by the Court into the final Decree of Divorce. WHEREFORE, PlaintilT requests your Honorable Court to enter a Decree in Divorce, divorcing Plaintiff and Defendart. COUNT II EQUIl'AIJLE DISTRIBUTION II. Paragraphs I through 10 of this Complaint are incorporated herein by reference as though set forth in full. 12. Plaintiff and Defendant have acquired property, both real and personal during their marriage from the date of their marriage until March 4, 1998, the date of their separation, 13. Plaintiff and Defendant have been unable to agree as to an equitable division of said property. WHEREFORE, Plaintiff requests your Honorable Court to equitably divide all marital property, COUNT III ALIMONY 14, Paragraphs I through 10 of this Complaint are Incorporate~ herein by reference as though set forth in full, ,-. 1...0 cr; (;: 1 I .. I , ~.~: ( , 1 , I , , " () r. l. , t_-, (1,1 I I ~' fL' I I;: .. ('. I L\. ._~ " r:r: C- O', ( Pla~ntiff also filed an interim petition for counsel fees and costs on January 14, 1999. The Master expects that after discussion with counsel that the agreement will relate that the claims for alimony and counsel fees and costs will be withdrawn so we are left then with the settlement agreement dealing with specifically the terms relating to the equitable distribution of marital assets. The parties were married on September II, 1976, and separated March 4, 1998. They were three children born of the marriage, Joseph P., born 23, 1981; Elizabeth A" born May 10, 1983; Katherine L., born May 10, 1983. Joseph is currently in college and the two daughters are in the custody of the father/husband. An agreement 'is going to be placed on the record in the presence of the parties. The agreement as placed on the record will be considered the substantive agr~ement of the parties not subject to any changes or modifications except for correction of typographical errors which may be made during the transcription, The agreement is going to be transcribed and a draft will be provided to counsel and the parties to review for typographical errors. After any corrections of typographical errors are made, the parties will be asked to affix their signatures by way of affirmation of the terms of settlement which are being placed en the record at this time, Specifically noted is that the parties are bound by the terms of this agreement after they leave the headng room today even though there is no affirmation of the terms by signing following today's meeting, After the agreement has beon returned to the Master by counsei and the partIer;, the Master ~I.ill prepare an Drder vacating his appointment so that counsel can fiie a praecipe transmitting the record to the Court requesting a final decree in divorce. Mr. Andes. MR. ANDES: The partIes have agreed as follows, and for purposes of this document, the Plaintiff, Mrs. Harner will be referred to as wife and the Defendant, Mr. Harner, will be referred to as husband: 1, This agreement will not make any disposition of claims for child custody or support which will be addressed in other actions now pending before the Court in which orders have presently been entered, although it is anticipated that at least the child support matter will be resolved separately and be modified in the future. 2. Wife shall convey to husband by special warranty deed delivered at the time for the settlement as provided for hereinbelow, all her right, title and interest in the family residence at 852 Wynnewood Road, Camp Hill, Pennsylvania, subject to any mortgage or other lien against the property as of this date, and husband shall be responsible to pay and satisfy in accordance with its terms any obligation which encumbers that property and to indemnify and save wife harmless from any cost or eXpense caused to her by his failure to do so, 3. Wife hereby waives and releases any claim to or interest in Myers-Harner Funeral Home, Inc., and the business which it operates in Camp Hill, Pennsylvania, and confirms that business and the stock in the corporation to be the sole and separate property of husband free of any claim by wife, Husband agree~ to pay and satisfy, in accordance with those terms, any debts or obligations owed by that corporation or the business with which it operates on which wife may be liable and to indemnify her from any loss, cost or expense causod by his failure to do so. 4. Wife shall transfer to husband by special warranty deed to be delivered at the time for settlement as provided for hereinbelow, all of her right, title and interest in and to the conunercial property improved wi.th a funeral home known and numbered as 1903 Market Street in Camp Hill, Cumberland County, Pennsylvania. Husband shall be responsible l'o pay and satisfy, in accordance with their terms, any debts or obligations which encumber the title to said propfClrty and shall indemnify and save wife harmless from any costs or loss or expense caused to her by his failure to do so. 5, During the marriage the parties each acquired individual retirement accounts with Merrill Lynch, Wife hereby waives and releases any claim to or interest in husband's IRA and conU rms tha t to be the sole and separate property of husband, Wife previously liquidated her IRA and husband waives and releases any claim to that asset or its proceeds and confirms them to be the sole and separate property of wife. 6. The parties hold in their joint names an investment account with Merrill Lynch which has a value today of approximately $45,000.00. Husband will execute today a letter directing Merrill Lynch to transfer that account into the sole name of wife and will deliver that to wife or her attorney promptly upon the execution of the affirmation of this agreement. Wife shall be the sole and separate owner of that account and the assets in it from and after today and shall be responsible to manage that account and pay any taxes that may be imposed upon her liquidation or withdrawal of any funds in that account in the future, 7. During the marriage the parties had a joint investment account with Raymond James, which was also known as the Passport Investments account. The parties made various withdrawals and disbursements from that account during the marriage and each of them received funds from that account. The parties confirm the funds received by the other to be that party's property and each of the parties waives any further claim to that account or any share of the funds in that account received by the other. B. At or about the time of separation wife withdrew approximately $21,000.00 from accounts held by Myers-Harner Funeral Home, Inc" or otherwise associated with that entity, Husband confirms those funds to be wife's sole and separate property and waives any further claim to those on behalf of himself or the said corporation. 9. Wife is the owner of a 1997 Sebring automobile which had previously been titled in the name of Myers-Harner Funeral Home, Inc. The parties agree that that vehicle shall be the sole and separate property of wife and husband, for himself and the corporation, hereby waives any interest in or claim to said vehicle. In consideration therefor, wife hereby waives any claim to or interest in ~ny motor vehicles owned or title in the name of husband or Myers-Harner Funeral Home, Inc., specifically including a 1994 Jeep Grand Cherokee and any other vehicle owned or titled in the na~e of the corporation. 10. Each of the parties lives was insured during the marriage by a policies of insurance issued by the Lutheran Brotherhood Insurance Company and the parties acknowledge that those policies had accumulated cash value as of the date of separation, The parties agree that each of them shall be the owner of those policies, including any cash value which has accumulated in the policies and each of the parties hereby waives any claim to or interest in the policies of insurance held by the other or the cash proceeds of those pOlicies of insurance. 11. Wife is the owner of certain other items of personal ornament. any claim to or interest in those be the sole and separate property items of jewelry, furs and Husband hereby waives items and confirms them to of wife. 12. Husband is the owner of a one-third interest in a Pontoon boat. Wife hereby waives and relinquishes any claim to or interest in said asset and confirms that to be the sole and separate property of husband, 13. During the marriage the parties loaned money to a gentleman named Scott Sprucebank, Wife hereby transfers to husband all of her right, title and interest in and to said debt and the right to collect it and confirms that to be the sole and separate property of husband. 14. Husband is a member of the West Shore Country Club. Wife waives any claim to or interest in that membership and confirms it to be Lhe sole and separate property of husband, 15. Husband shall pay to wife, at the settlement provided for h",reinbelOl'/, tho sum of $400,000,00, It is contemplated that husband wili raise such funds by refinancing the residence and commercial property and, perhaps, his tnterest in Myers-Harner Funeral, Home, Inc., and that it will take him some reasonable amount of time to arrange the financing. The parties further agree, therefore, as follows: A) Husband shail, within ten days of today's date make formal application for loans necessary to raise such funds wIth at least two lending Institutions. B) As soon as the iending is approved and the funds are available, the parties will meet to conduct a settlement, at which time, wife or her representative will deliver to husband a deed to the residence on Wynnewood Road, a deed to the commercial property on Market street, and any other documents reasonably required to convey those properties and any of the other assets set forth in this agreement that are to go to husband and to waive any claim that she might have in the real estate so as to allow the mortgage settlement to be concluded. C) At such settlement, contemporaneously with the delivery of the deeds and other documents, husband or his representative will pay to wife or her representative the sum of $400,000,00. 0) It is contemplated that these financial arrangements will be in place so that the settlement can be concluded in less than 90 days. The parties agree that they will cooperate with each other and with their attorneys and other representatives and with the mortgage company to accomplish the settlement as soon as practical hereinafter, 16, The parties have previously divided their furniture, appliances and other items of tangible household goods. Each of the parties shall retain those items now in their possession free of any claim from the other and this agreement shall have the same effect as a release and a bill of sale from one party to the other of all such items of tangible personal property now in each party's possession. 17, During the marriage the parties had acquired certain bank accounts either in separate names, joint names, or the name of the corporation, Myers-Harner Funeral Home, Inc., including accounts at Harris Savings Bank, Pennsylvania State Bank, and America funds. Each of the parties waives any claim to or interest in any of those accounts now held in the name of the other or in the name of the corporation and confirms those accounts and any funds in them to be the sole and separate property of whoever is the titled owner of the accounts on this date. 18. There is currently pending before this Court an order of alimony pendente lite which obligates husband to make cash payments of alimony pendente lite to wife. The parties agree that, until the settlement provided for herein and until payment is made to wife and the deeds are delivered at that settlement, husband shall continue to make payment of that alimony pendente lite to wife through the Domestic Relations Office. Immediately after settlement, both parties, by their attorneys, will advise the Domestic Relations Office to terminate the order entered in the Domestic Relations Office to docket No. DR 27919 PACES 10 No. 814100330, No. 98 - 1248. Wife and husband waive all, further claims to spousal support, alimony, or alimony pendente lite whether they have been raised in this case to date or not, Both parties further waive any claim to counsel fees, costs, expenses, experts witness fees, or the like whether they have been raised in this action up until now or not. 19. The parties acknowledge that they have exchanged extensive information during the pendency of this action, that each of them have filed pretrial statements and engaged in formal and informal discovery, Each of the parties acknowledge they are aware of their right to have the Court decide all of the economic issues raised in their case and have decided, voluntarIly, to waive that right and to accept the terms and provisions of this agreement as satisfying and resolving all of the economic issues between them and any economic claim the other has as set forth herein, with the reservation only of claims relating to child support and child custody. 20, Except as herein otherwise provided, each party may dispose of his or her property in any way and each party hereey waives and relinguishes any and all rights he or she may now have or hereafter acquire under the present or future laws of any jurisdiction to share in the property or the estate of the other as a result of the marital relationship including without limitation, statutory allowance, wIdow's allowance, right of intestacy, right to take agaInst the will of c.he other, and right to act as administrator or executor In the other's estate, Each will at the request of the other execute, acknOWledge, and deliver any and all instruments which may be necessary or advisable to carry into effect this ffiutual waiver and relinquIshment of all such interest, rights, and claims. MR. ANDES: Mr, Harner, you were here today; you heard what I just dictated; is that correct? MR. HARNER: Yes. MR, ANDES: Do you have any questions about it? MR. HARNER: No. MR. ANDES: Are you satisfied that you understand it? MR, HARNER: Yes. MR, HARNER: Yes. MR. ANDES: Knowing all of that, is the agreement that I dictated and that she is typing up, satisfactory to you? MR, HARNER: Yes. MR, ANDES: Do you understand that whether we ever sign a p.i.ece of paper or not, we are nlaking a " representation to the Court that this is the agreement we have made and we are willing to be bound by it whether it is in, writing and signed by you or not? MR. HARNER: Yes, MS, DALEY: Martha, you just heard Mr. Andes go through the details of the settlement; you were present to hear him dictate those, were you not? MS. HARNER: Yes. MS. DALEY: And is that identical to the information that you and I have discussed since ,we reached our settlement last evening at 10:00 p.m,? MS. HARNER: Yes. MS. DALEY: You and I have had a chance to review all of the financial documents, review tax returns, review reports of experts and the like, do you have any qu~stions about any of the assets that remain unanswered at thi,s point? MS. HARNER: No, MS. DALEY: Knowing that, you will be bound by the provisions of this agreement forever, There will be no changing your mind about this, that this is a full and final settlement of all claims between the two of you. Are you asking the Court to adopt this as its final order? MS, HARNER: Yes. , . MARTHA S. HIIRNER, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA v. No. 9B-1248 CIVIL 1'ERM ROBERT H. HARNER, Defendant IN DIVORCE RE: Pre-Hearing Conference Memorandum DATE: Monday, March B, 1999 Present for the Plaintiff, Martha S. Harner is attorney Kathleen Carey Daley, and present for the Defenda~t, Robert H. Harner is attorney Samuel L. Andes, A divorce complaint was filed on March 9, 1998, raising grounds for divorce of irretrievable breakdown of the marriage. Counsel have indicuted that the parties will sign and file affidavits of consent and waiveru of notice of intention to request entry of divorce decree prior to the hearing to be scheduled so the divoroe can be concluded under section 3301(c) of the Domestic Relations Code. The complaint also raised the economic claims of equitable dist~ibution, alimony, and alimony pendente lite. with respect to the alimony claim, counsel for wife has indicated she will file a praecipe prior to the hearing withdrawing wife's alimony claim. The complaint did not raise the economic claim of counsel fees and costs, and attorney Daley has advised that she will be filing a petition raising that issue. The parties were married on September 11, 1976, and separated March 4, 1998. There were three children born of the marriage, and those children are currently in the custody of husband. The children's names and dates of birth are as follows: Joseph P., March 23, 1981; Elizabeth A., May 10, 1983; Katherine L., May 10, 1983. Judge Guido had a hearing on wife's claim for spousal support and alimony pendente lite and child support. After a hearing, Judge Guido entered an order dated Deoember 16, 1998, and after considering deductions that were due husband from gross income and wife's child support obligation, the judge determined that husband shall pay wife IIPL in the amount of $1,167.00 per mont,h, commencing September 19, 1998. Wife is 44 years of age and resides at 237 Graham street, Carlisle, pennsylvania, where she lives alone. She has a Baohelor's degree from Bucknell University and a teaohing certificate. currently, she is a student at the Dickinson School of Law in the first year. Judge Guido assessed a monthly net income for wife of $1,000.00. Wife has not raised any health issues. She is currently covered under husband's medical insurance plan through the business of husband. Husband is 45 years of age and resides at 852 wynnewood Road, camp Hill, Pennsylvania, where he lives with the three children. He is a graduate of Mortuary Science School and has two years of college at Gettysburg college. He is the owner of Myers-Harner Funeral Home, Inc. The stock in that funeral home is issued in husband's name only, although there is no dispute that the stock is a marital asset. The real estate that is used in the funeral home business is owned jointly by the parties. Judge Guido determined, after review of the income of husband and the credits/debits that he is entitled to, based on the statements set out in Judge Guldo's opinion on page seven, that the annual net disposable income of husband is $87,535.00. That computes to $7,295.00 net per month for the year 1998. Wife's attorney, however, disputes the computation and is going to try to show that the net income is higher than Judge Guido found using the computations and figures in his opinion. Husband has not raised any health issues. The real estate at wynnewood Road, camp Hill, Pennsylvania, has been appraised by husband in 1998, and the expart that husband had, Patrick A. Mccarthy, stated the market value at $246,000.00. Wife recently had the property appraised by ~d Kopenhaver, and he determined that the market value is $237,000.00. The home is not subject to a mortgage, and counsel indicated they are going to attempt to stipulate to a value before the hearing, The real estate where 'the funeral home business is located at 1903 Market street, Camp Hill, was appraised by Thomas F. Q'Byrne in 1992 at $605,000.00. Mr. Andes has estimated that the increased value from 1992 to present would bring the value to $695,000.00. Attorney Daley is probably going to have the property appraised or the parties may be able to stipulate to the value. The property is subject to a mortgage of around $425,000.00. with respect to the value of the funeral business, exclusive of the real estate, wife has suggested the value at. $350,000,00, using an expert by the name of Bruce Brown, CPA, Husband has suggested a value of the business at $288,000.00, using the services of the firm of Mathieson, Aitken, Jemison, LLP. - ..-'-' Wife has a 1997 Chrysler Sebring which counsel are going to attempt to stipulate as to value, Husband uses a 1994 Jeep Grand Cherokee, which is owned by the corporation, and according to husband, he claims it is included in the value of the business. On the other hand, wife's attorney claims the Jeep is being used almost exclusively by the son of the parties and should be included as a marital asset separately from the business even though it is titled in the corporation. Wife has an IRA which has been valued on the pretrial statement at $23,000.00, and husband has an IRA valued at $28,000.00. counsel are going to provide statements. Also, oounsel are going to provide statements for the various other investment acoounts and savings and checking accounts as follows: Robert James/passport Investments account; Merrill Lynch investment account; American Funds; Lutheran Brotherhood Life Insuranoe universal policy; Pennsylvania State Bank; Harris savings Bank. Counsel have indicated that wife, around the time of separation, withdrew approximately $29,000.00 from various joint accounts, and counsel are going to try to determine how much, if any, credit husband should be allowed on the use by wife of marital assets. Wife is claiming that some of those funds were used to maintain herself and the children since husband was not paying any support for a period of time. Mr. Andes has indicated that the jewelry and furs of wife have a value of around $37,000.00; wife claims that the furs and jewelry have a value of $1.5,000.00. Attorney Andes indicated that he may have the furs and jewelry appraised. With respect to the household tangible personal property, counsel have indicated the parties have divided the property to their mutual satisfaction. Counsel are going to provide at the hearing a value for property received by each of the parties so that value can be used in the equitable distribution computation. Attorney Daley is claiming that husband's membership at the West Shore country Club has a value of $10,000.00. Mr. Andes claims that membership in the country club is not an asset and that the monies that were paid were not SAN pm, LANDES A'rl'()RNJ~Y AT I.AW nun NOU'J'II TWI.;r,l"rll WI'HlH;'!' ",0, floX HI/I I.I~MOYNH, PJ~NNSYJ.vANIA n04a 1'F.I,IWllONI~ (117) rOI'l'HllIl 12 January 2000 FAX (111) 1(1/-'_&:1:\' E. Robert Elicker, II, Master Office 01 the Divorce Master 9 North Hanover Street Carlisle, PA 17013 RE: Hamar vs, Harnsr Dear Mr. Elicker: I write in response to Kathleen Daley's diahbe to you in the lorm 01 her letter 0110 January 2000. Frankly, the statements she made in her letter should not be directed to you, who will have to hear the evidence in the case and recommend lindings ollact to the Court. I do not believe it is proper lor attorneys to litigate their cases through accusations they make in letters. The proper way lor these matters to be determined by you is to hear the evidence at the hearing. However, I leell must respond to some 01 her accusations so that you will not prejudge the case unreasonably. First, my client submitted an expert's report in this case approximately two years ago. Bruce Brown prepared a report in which he alludes to some unreported income that he claims the Harners took lor the last year belore they separated. Using the income which Mr. Brown claims they received but did not report, he came up with a much greater value for the business than my client's expert calculated. During discussions with my client's expert, Mr. Brown made relerence to the inaccurate income reporting and that caused my client's expert, who was also responsible to prepare the tax return lor the year in question, to step out oJ the case. My client has now secured another expert witness who needs more clarilication about Mr. Brown's claims that there was unreported income so that he can do his report, Bruce Brown's report makes mention 01, and in lact relies Upon, these items 01 unreported income, but does not describe them or set out enough inlormation abollt them that anyone who reads this report can know what he is talking about. Frankly, 1 believe Mr, Brown's report is incomplete lor that reason alono. My client and I are trying to get this case resolved . To do that, the two experts have to work with the same inlormation in an eflort to como up with valuos 01 the business which they can justily and which, hopelully, will lead the ~?'ties to an agreement, I have asked Kathleen Daley to provide a clarilication 01 Mr, Bro,vn's claims on this point, without SUccess. It is she who is delaying the completion 01 the expert reports. I i I , , MARTHA S. HARNER, plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 9 B -, 1 2 4 B vs. CIVIL ACTION - LAW ROBERT H. HARNER, Defendant IN DIVORCE ORDER AND NOTICE SETTING HEARING TO: Martha S. Harner , plaintiff Kathleen Carey Daley . counsel for plaintiff Robert H. Harner . Defendant Samuel L. Andes . Counsel for Defendant You are directed to appear for a hearing to take testimony on the outstanding issues in the above captioned divorce proceedings at the Office of the Divorce Master, 9 North Hal10ver street. Carlisle, pennsy lvania on the ~th ,____ day of October ,1999. at 9:00 a.m., at which place and time you will be given the opportunity to present witnesses and exhibits in support of your case. pres iden t ,Judge Date of Order and Notice: 3/8/99 By: Divorce Master IF YOU DO NOT HAVE A LII\~YER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CIIN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CAIlLISLE, PA 1'1013 TELEPHONE ('1]'1) 249-3166 .... IN THE COURT OF coMMON PLE~S of CUMBERLf\Nt' CO\lNT'i I PENNS'iLVf\Nlf\ NO . 9 B-1 2 4 B M~RTH~ S. H~RNER, Plaint iff CIV1L T\CTION LAW VS. IN DIVORCE ROBERT H. HARNER, Defendant RESCHEDULED HE~RING ORDER "NO NOTICE SETTING HEARING - -- -.- -=---- TO: Murtha S' Harner , plaintiff Kathleen Carey Daley , counsel for Plaintiff Robert H. Harner , Defendant Sal1\Uel L. I\nde9 counsel for Defendant , "u .,. 'i"O'" '0 'Pp'" '0' · h..,i09 '0 ,.k' ,.,'imoo' 00 ,h' oot.,ao'i09 i"u" in 'h' abo" c.p'ioO" ,ivo'O' p,oo..'iO" .t ,b. o"io' 0' ,h' oi'o'o' Ma"", 'Mo,'b Hac"" ",.." CO< ".1', ,,,...,1 vaoia 00 'h' 2Od' ", dO' ~ ---~ of Ma, _' ,oDD. ., _ ,,00 a.m.. ., whioh pl00' ", time ," will b. ,i"O the opp"tuO'" to p,...ot witnesses and exhibits in support of your case. li~ rge E,1HOf~r, president Judge _v_ Date of order and Notice: _10/8/99 BY: Divorce Master IF 'OU 00 NOT H'Vi , L"'" 0' C,NNOT ",0'0 ONE. GO TO 0' TELEPHONE THE OF,ICE SET FO,TH .'LO' TO FIND OUT .HE,E ,OU C,' GET LEGf\L HELP. CUMBf~I\LT\N\) coUNT'i B~H ~SSOCl~T IoN 2 \,I\.W,R'I"{ ~VENUE C~RLlSLE, P~ \1013 'I'E\,EI'\\ONE (1\1) 249-3166 '* OFFICE OF DIVORCE MASTER CUMBERLAND COUNTY COURT OF COMMON PLEAS 9 North Hanover Slreel Carlisle, PA 170t3 (7t 7) 240-6535 E. Robert Elicker, " Divorce Master Trlcl .10 Colyer Ollleo Manager/Roportor We.. Shore 697-0371 Ex!. 6535 i 1 TO: Kathleen Carey Dale, Attorney at Law Samuel L, Andes, Esquire DATE: Thursday, January 27. 2000 RE: Martha S, Harner vs. I~obert H. Harner No, 98 - 1248 Civil In Divurce This is to confirm the conference with counsel and the Master on Thursday, March 9, 2000, at 1:30 p.m, Tra,ciJ. Colyer Court Reporter i Samuel 1. Andes, Esquire December 30, 1999 Page Two Depreciation and Amortization Expenses In developing the adjusted eamingn, BSSF added back reported amounts of depreciation and amortization expenses deducted in the historical financial statements, The method used by BSSF to arrive at an estimate of fair market value for the funeral home includes the application of a capitalization rate to the after-tax normalized earnings, (The development of this capitalization rate is presented in exhibit 2 of the report und discussed on Puges 8 and 9 of the report), The capitalization rate applied to the subject company was developed with reference to rates of return for debt and equity securities traded on public exchanges. These rates of return consider corporate net income after deductions for depreciation and amortization, To properly match the capitalization rate cakulated by BSSF for the Corporation, deductions for depreciation and amortization should be considered in developing the earnings base for Myers-Harner Funeral Home, Inc, The reversal of the adjustments made to the historical earnings for depreciation and amortization by BSSF decreases the weighted average eamings by $15,900. Personal Expenses The BSSF valuation report includes the addition of cettain expenditures identified as "personal expenses" to the Corporation's reported income fi'om 1993 through 1997, The report does not include any discussion or analysis as to how these annual amounts were derived, Our review of these adjustments is nol yet complete, For the purpose of this letter, we have estimated that one-half of these .additions to the reported income are valid business expenses. The acknowledgement of one-half of the personal expenses identified in the BSSF report as business expenses decreases the weighted average earnings by $ I 8,000. We have summarized below the effect upon the weighted average earnings presented in the BSSF valuation for the above observations regarding certain normalization adjustments presented in that report. (We have attached to this letter a worksheet that recalculates the information presented in Exhibit 3 of the BSSF report based upon the revisions identified in this letter), Weighted Average Pre- Tax Income Per BSSF Valuation Report Less: Charitable Contribution/Advertising Less: Depreciation and Amortization Expenses Less: One-half of "Personal Expenses" Adjusted Weighted Avel'age Pre-Tax Income $117,800 (1,300) (15,900) (18,000) $ ..8~,60Q It is our understanding that Mr. Hamer is the only full-time employee of the Corporation, There is only one other employee that works on a part-time basis. It is evident that the financial results of operations are largely due to the efforts of Mr. Harner personally as a single owner/operator, To estimate the business value of Mr, Harner's efforts, we benclunarked the Corporation's results of operations with an industry survey. \ ) Samuel 1.. Andes, Esquire December 30, 1999 Page Three Annl/al Statement Stl/dies is an annual publication by Robert Morris Associates, which presents selected financial infonnalion by industry from financial statements submitted by member banks. The reported prof1t before taxes for companies operating funeral services and crematories with sales of zero to $1 million is 6,1 percent. This percentage is 14.4 for the subject company based upon the weighted average amounts for sales ($574,300) and pre-tax earnings ($82,600), We have considered the Corporation's profitability beyond the industry average as being attributable to his personal efforts in the business. Consequently, any goodwill associated with these excess eamings would be ,personal and not includible in the marital estate, The following lIualysis presents the reduction of the pre-tux adjusted earnings by those ~amings attributable to Mr. Hamer's personal efforts along with a revised tax provision, Adjusted Weighted Average Pre-Tax Income Less: Excess Earnings from Mr. Hamer's Efforts ($574.300 x 8.3%) Pre- Tux Income Net of Excess Earnings Less: State Income Tuxes Less: Federal Income Taxes After-Tax Income Net of Excess Earnings $82,600 (47,667) 34,933 (3,493) .H,716) $26.724 The capitalization rate presented in the BSSF report was developed using a "build-up" method. Under this method, the subject company's cost of capital is developed by the addition of various risk premia to a risk-free rate of return, usually US Treasury Securities, lbeir application of this method for the subject company resulted in a net cash flow discount rate of 20.0 percent. With reference to their risk-free rate of 6,0 percent, they factored an overall equity risk premium of 14 percent to be appropriate, i I I ( , , , , We referenced numerous authoritative references regarding the application of the build-up method. One such reference is Cost of Capital: Estimation and Application by Shannon p, Pratt, In Chapter 8 of this book, he presents the build-up model for estimating the cost of capital. With respect to the equity risk premium for size, he references a table presented in Ibbotson Associates' Stock, Bonds, Bil/s, and Inflation (SBBI) which identifies risk premiums for various size decile portfolios of the New York Stock Exchange (}lYSE). t In developing the equity risk premium for a closely held company, he cites the infonnation in Ibbotson Associates' SBB/1997 Yearbook that indicates the general equity risk premium for the smallest 10 percent NYSE stocks is 16.75 percent in excess of the riskless rate.2 , " " : Prall, Shannon p,. COlt ofCapilal: EstLrnation and Appllcatlonl, 1998 John Wiley & Sonl, Inc.. p, 67, Ibid., p, 67 and 69, Samuel L. Andes, Esquire December 30, 1999 Page Four The SBBl 1998 Yearbook (which includes infomlatlon as of December 31, 1997, the valuation date used by BSSF) indicates that the actual return in excess of the riskless rate is 16,63 percent for the ~mallest 10 percent of companies listed on the NYSE. J Adding this risk premium to the riskless rate as of December 31, 1997 results in net cash flow discount rate of 22.63 percent. The average market capitalization of companies included in this size decile is about $68 million4 Since Myers-Harner Funeral Home, Inc, is clearly much smaller than the average company referenced for this risk adjustment; we have minimally added an additional 3 percent to acknowledge this observation, This results in a net cash flow discount rate for the subject company of25,63 percent. Accepting the cash flow to earnings adjustment of zero and the growth rate of 2 percent used by 8SSF, the revised capitalization rate would be 23.2 percent. This equates to a new "base capitalization factor" as applied by BSSF of 4.31. We have attached a worksheet with this letter that presents the capitalization rate calculated in the BSSF report along with the revised capitalization rate described in the preceding paragraphs, We have presented below the reapplication of the capitalized earnings approach used by BSSF with the revised earnings and capitalization rate presented in this letter, After-tax Income Net of Excess Earnings $26,700 Multiply by Capitalization Factor _4.31 Total 115,077 Less: Marketability Discount - 25 Percent (28,769) Add: Non-Operating Assets 90,000 Indicated Value $J76.3Q~ We have applied the marketability discount to the same base and at the same rate as was done in the BSSF report. We have also treated the non-operating assets consistently with the BSSF report, me. Should you have any questions regarding this infonnation, please do not hesitate to contact Sincerely, '-...,,- , Slock.r, Bonds, Bills, and /nflallon /998 Yearbook, Ibbolson Auoclates, p, 142. 4 Ibid" P 140 (Recenl decile market caphallllltion ($ 12.720,499.000) divided by recent number of companies (186). MYERS.HARNER FUNERAL. HeME, INe, EXHIBIT 2 CAPITALIZED EARNINGS METHOD. CAPITALIZATION FACTOR BSSF Report Revised Rlsk.free rate of return 6.0 6,0 Common stock equity risk premium 7.6 Small stock risk premium 4.7 Subtotal- common and small stock premiums 12.5 16.6 Corporation specific premium 1.5 3.0 Nat cash flow discount rale 20.0 25.6 Cash flow to eamings conversion 0.0 0.0 --- Net earnings discount rale 20,0 25.6 Sustainable growth rate 2.0 2.0 Base capitalization rate for next year 18.0 23,6 Divide by 1 + growth rate .:. 1.02 1.02 Ba~e capitalization rate for currant year 17.6% 23.2% Base capitalization factor (1 divided by base capitalization rate) 5,68 4.31 , In the Conrt 01' Common Pleas 01' CIIMOERLAN(> County, Pennsylvania l>OMESTIC RI~LA'I'(ONS SEC'I'lON MARTH.I\ S. HARNER ) OoukUI NUll1h~r 98-1249 CV Plaintiff ) VS. ) PACSES Case Numlwr 814100330 ROBERT H. HARNER ) Oet~ndanl ) Olher State ION umher mIDFJtOF CQllIIT: RESCHEDULE A CONFERENCE You. MARTHA B. HARNER plaintiff/defendant of 852 WYNNEWOOD RD, ClIMP IIIl,L, PA. 17011-1645-52 are ordered to appear at CUMBERLAND co DRB 13 NORTH ~lOVER STREET, CARLISLE, PA. 17013 before a conference officer of the Domestic Relations Section, onlhe 20TH DAY OF OCTOBER, 199B at 10: 30AM for a conference, after which the conference officer may recommend that an order be entered, This date replaces the prior conference date of OcrOBER 20, 199B You are further required to bring to the conference: I. a lrue uopy of your most recent Federal h,,'ome Tax R('turn, iocluding W-2s, liS tiled, 2, your pay sluhs hlllhe preceding six (6) months, 3, Ihe Incume aud Expense Stlltcmenllltlached to lhls OI'der liS required hy Rule t910.11 (c), 4, verificatloo of child care expenses, and S, proof of medklll coverage whidt you lIIay have, or lIIay have uVllilahte 10 you 6. Information reluting 10 profcssionulllcenses 7. other; PLEASE NOTE THE CHANGE IN CONFERENCE TIMES, CC: Kathle,m Carey Daley, Esq. D..27919 Serviue Type M Form CM.513 WOI'kerlD 21205 ~ In the Court 01' Common Plell.~ of CIIMIlERLANU County, Pennsylvania DOMESTIC RELATIONS SECTION MARTHA S. HARNER ) Do~k('1 Numher 98-1248 CV Plaintiff ) VS. ) PACSES Case Numher 814100330 ROBERT H. HARNER ) Defendant ) Olher Slale ID Numher ORDER..QF COURT - RESCHF.oULE t\..C.ONFERENCE You. ROBERT H. HARNER plaintiff/defendant of 1903 MARKET ST, CAMP HILL, PA, 17011-4702-03 are ordered to appear at CUMBERLAND CO ORS 13 NORTH HANOVER STREET, CARLISLE, PA, 17013 before a conference officer of the Domestic Relations Section, on the 20TH DAY OF OCTOBER, 1998 at 10: 30AM for a conference, after which the conference officer may recommend that an order be entered, This date replaces the prior conference date of OCTOBER 20, 1998 You are further required to bring to the conference: I. a Inle ('(lpy of your most re~ent Fedemllncome Tax RelllfJI. Including W-2s, as Iiled, 2. your pay stuhs for lhe preceding six (6) months, 3. the Income and Expense Statement attached to this order as requhed by Rule 1910.11 (c), 4, verificatlnn of child care ("xpenses, and 5. proof of medical ~overage which you may have, or may have availahle to you 6, Intimuatlon relalillg 10 professiollllllicenses 7. other: PLEASE NOTE THE CHANGE IN CONFERENCE TIME, cc: Samuel L, Andes, Esq, 0-27919 ~ervice Type M FormCM-513 Worker ID 21205 '>- co (' l:-,;~ (.'~ "-l. ;'5...( 1-' M (") , ) .,_.~ lJ.!.., ;~) :'; ()-' .-,.... Ire L~. I': i .1:1' c' ""',.. o1} ~.. ('r") 'if} Ed ~ N , ~.lll n.. ,-Vel 1"" . ";)..i... .l.. ~1 LI I .'.-tL ,., V' I~ 0:: :__J 0 cr- t.) I' .~ cf i "(') s 3 ~ 1 , , SAMlllO. 1.. ^Nnw., AT'I'OUNI~Y AT LAW nun NOIfTH "'WI':I.I"I'1I H't'ItIU:T 1',0. uox lOll t,I~MOYNJI;j PENNHYJ.vANIA 170'~:J 1'F.1.I"1'1l0N'J~ (117) 101'rI.rI01 3 November 1998 ""Ii:. (711j'161"43D E. Robert Elicker, II Office of the Divorce Master 9 North Hanover Street Carlisle, PA 17013 RE: Martha S. Harner vs. Robert H. Harner No. 98-1248 Civil Term Dear Mr. Elicker: Enclosed is the Defendant's Pre- Trial Statement which I file In the above matter. One fact of which you should be aware, that Is not set out In the Pre- Trial Statement or the other documents which have been flied In the divorce action as yet, Is that my client currently has custody of all three of the parties' minor children. Please schedule a Pre-Hearing Conference when you can. Sincerely, I L. Andes amr Enclosure cc: Kathleen Carey Daley, Esquire (w/enclosure) Robert H. Harner (w/enclosure) II' 1l",(T?J i(t 1/( ,Ii MARTHA S, HARNER, Plaintiff vs. ) ) ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW ROBERT H. HARNER, Defendant NO, CIVIL TERM IN DIVORCE DEFENDANT'S PRE-TR~AL STAllME.NI Defendant, by his attorney, Samuel L. Andes, files this Pre-Trial Statement In accordance with Pa. R.C.P. 1920.33(b): 1. ASSETS, Attached hereto and marked as Exhibit A is a list of the marital assets of the parties. Attached hereto and marked as Exhibit B Is a list of the non- marital assets of the parties. 2. EXPERT WITNESSES. At the present time. Defendant Intends to call the following expert witnesses, If the parties are not able to agree upon the value of various marital assets: A, A representative of Mathieson, Aitken, Jemison, LLP, an accounting firm, who will offer testimony about the value of Myers- Harner Funeral Home, Inc, B. A real estate appraiser who will offer testimony about the value of the marital residence and the commercial building In Camp Hili owned by the parties, C. An appraiser of household furnishings, jewelry, furs, and other tangible property, 3. FACT WIINESSES. At the present time, Defendant Intends to call only himself as a fact witness. 4. EXHIBITS, Defendant Intends to offer the following Exhibits Into evidence: A. Tax returns for the parties for three or more years prior to the date of the hearing. B. Tax returns for Myers-Harner Funeral Home, Inc. for three or more years prior to the date of the hearing, C. Financial statements for Myers-Harner Funeral Home for three or more years prior to the date of the hearing. D. Various documents relating to the purchase and acquisition of Myers-Harner Funeral Home, Inc. by Defendant. E, Statements showing the balance at the date of separation and at the date of hearing In various Investments held by the parties and other documents confirming any deposits into or withdrawals from those accounts which are related to the claims In this action. F. Deeds, receipts, and other documents to verify the costs of various items owned by the parties. G. Real estate appraisals, business appraisals, personal property appraisals, and other documents which may be entered Into evidence In lieu of having expert witnesses offer live testimony. I 5. INCOME STATEMENT. Attached hereto and marked as Exhibit C Is a copy of Defendant's current Income and expense statement. 6. EXPEN5.E...sIAIJ:MENT, Attached hereto and marked as Exhibit C Is a copy of Defendant's current Income and expense statement, 7, PENSION INFORMATION, All the retirements benefits owned by the parties are Individual retirement accounts and other defined-contribution assets which can be valued by review of statements and other financial records. Defendant does not anticipate expert testimony will be necessary to value those retirement assets. 8. COUNSEL FEES, Defendant hC1S not, at least as yet, raised a claim for counsel fees In the case. If the Plaintiff pursues any claim for counsel fees, however, Defendant reserves the right to submit his own request for payment of his counsel fees or to offer evidence of the counsel fees he has incurred In the litigation of this case as a result of the various actions and claims by Plaintiff. 9, ~~~. Defendant anticipates that the parties will be able to agree upon the value and division of their furnishings, jewelry, furs, and motor vehicles. In the event they are not, he proposes that ?I! those Items be appraised and that each of the parties be charged with the value of the items In their possession as that value Is established by the appraisal. 10. MARlIAL DEBTS. Attached hereto and marked as Exhibit D is a list of the liabilities of the parties at or near the date of separation. 11. e.RQP...QSED RESOLUTION 01: ECONOMIt.jSSIJES. Defendant proposes that the marital residence, which he occupies with the parties' three minor children, be awarded to him, that Myers-Harner Funeral Home, Inc. and the real Ilestate which the parties own at which the corporation operates Its business be EXHIBIT ~MARITAL-PBOP-E.RI.Y DATE OF MARITAL AMOUNT OF ASSET VALUE VALUATION PORTION LIENS LIEN -- _. Residence elt 852 $246,000,00 9/1998 100% None as of Wynnewood Road, (appraisal October 1998 Camp Hill. PA attached) - - - Commercial Building at $695,000,00 1 0/1 998 100% Mortgage to Balance, as of 1903 Market Street, (appraisal Pennsylvania October 1998, Camp Hili, PA from 1992 State Bank approximately attached) $420,000,00 -- -- Husband's stock in $288,400,00 6/1998 100% No liens except Myers-Harner Funeral (appraisal of as set out in Home, Inc, Mathison, appraisal and Aitken. documents Jemison, LLP attached attached) Husband's IRA with $27,958,00 12/31/1997 100% No lions known Merrill Lynch Wife's IRA with Merrill $23,240.00 2/27/1998 100% No lions known Lynch Joint investment account $23,906,00 3/1998 100% No liens known with Merrill Lynch -- Joint stock account with $46,115.82 3/1998 100% No liens known Passport Investments - Household furnishings $30,000.00 3/1998 100% No liens known -- Wife's Jewelry !inciuding $30,000.00 3/1998 100% No liens known diamond earrings, diamond tennis bracelet, ring with five diamonds, and numerous other fine jewelry items) . - Wife's furs $7,000.00 3/199B 100% No liens known 1997 Chrysler Sebring $21,500.00 9/1998 100% No liens known Automobile llllalltn.- UNIFORM RESIDENTlI\!.. 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",JT1Id"" .1"nJIy "II:' tUOl,ol ,IOPllIy,; .1lQ.AQ~illi.iIi'lJHQ!jMllil!llQllOt_Wll\Ul..lillOjjj]~I~.llIl SU~IE.~Um~, ltlW~MI1mWl~~'S JQ.liQ.T! nl~T.tt! IS 1101 AN IX"",," IlIe /IILO QtliMOOIIM!NTAL STUO!~S ANOAN WeR1800Y 10EPI MAYOlr~R A CON IlASIINQ OPIN ~ -, "lIldl. "'Ie form 70 em PA(I( I 0" h'l(litl Mil 'OIm 1004 6:1)1 ~o/m U,U -, 'lOTAI ~oon IO(Wlndow" .t(l~"i'"lotlwm Cv IIAltlQdt klC. _ 1."1'10, ~I 411""~ :j ',/, Ii I' , , ',.. J , , ~, ' " ';i, '.' I"~ " ., "! VALUATION IU\:I'ORT ", . MYERS.HARNER FUNERALHOME,INC. . )' Dcccmbcr 31, 1997 " " " I', , . " ,Ii 'I, ".,l. " .' " , ~ \ ' \':. 'f II' '. ,," ,,' 'i. " ',' ,'.' , " " " , , : , " , , .. , , ' , ~ " ," , ,.; " " " : , " , " ":1 ,: I , ,I,' ".', "" , "j" .',:-, '-,' .,.f." '0, 'J,' ': :' " , ' I.,' ',,', 'I "I ~ ~ . '-", 'I,' " " ,'. , .'; ." " "'I ,,1',:.., " , ,', '" \, , I ~ ; " ;',1:'-' ',,' 1, , "',1, ..,": , , \: ,;, " " 'i'" , , I', " . .,l ,,' \. " , " , " :'1\, " ") .' I,i'; 'I' ", , , !' 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'" f"~ r--I r- '<t <:.> 00 00" 1'1 '" r.., ... VI ... V'> r- ~ 1- ,,{ '" ooo~ I.....~ r,1 If) r- "" r--. 00('--0,"",":,0"\00 ~'I""'~' t-':' r-.: a-. OO\OrI N, t'-I Vl "" ... "" '<t 0- 0- ~. ,..,r- r- 00 ~.~ ... - ....1 '" '" r- co r--. 0 \,0 '" C"t ". V) 00 Vl r'l I.D" If). ~O "" rot r' "" ... ... "" '" o '" o o r.... I/') 00 r- t"- oo \'-1 0 ('I ,..... c.... \() "+'... ~ q "" ~ r-: 00 (1'1 0 O"l (1) \0 0\ 1..0 f'1 N ('I ... "" VI VI ~ 0' I.o.l E '" ~ ~ ~ 1.o.l;Z ~Vl ~O :0 < ,~ """ ~ '01, Ul ,0;:: " __ "-l Z-'" VlSo:l:O:;j!U [;j.5 G'!:! !-< Ul VlvfZ..;!-<l':: Vl~<>:~I.o.lUl <...JI-..JZO MARTHA S, HARNER, ) IN THE COURT OF COMMON Plaintiff ) PLEAS OF CUMBERLAND COUNTY, ) PENNSYLVANIA ) vs. ) CIVIL ACTION - LAW ) ) NO. CIVIL TERM ROBERT H, HARNER, ) Defendant ) IN DIVORCE PEFENDANTrS INCOME AND..E.Kf.E.NS.lLS_TAT.fMENI Defendant, Robert H. Harner, hereby makes the following statement of his Income and expenses as of October 1998: I. INCO~TATEMENT Defendant Is employed by Myers-Harner Funeral Home In Camp HIli, Pennsylvania, which he owns. Following the separation, when Mrs, Harner ceased ecelvlng a salary and he had to pay all the additional expenses to support the amlly, he Increased his salary to $900,00 per week, From that salary he has the ollowlng deductions and net Income: Gross Salary Per Week $900.00 Less: Federal Income tax Social Security tax Medicare Tax PA Income tax Local income tax $141.13 $58,90 $13,87 $26.60 $9.50 Net Per Week $250.00 $650,00 hat averages to be $2,816,67 each month net of taxes. ASSETS OF PARTIES MARTHA S, HARNER, PLAINTIFF, MARKS ON THE LIST BELOW THOSE ITEMS APPLICABLE TO THE CASE AT BAR AND I'rEMlZES THE ASSETS ON THE FOLLOWING PAGES, (X) 1. Real Property (X) 2, Motor Vehicles (X) l Stocks, bonds, seculities and options ( ) 4. Certificates of Deposit (X) S, Checking accounts, cash (X) 6, Savings accounts, money market and savings certificates ( ) 7, Contents of safe deposit box( s) ( ) g Tmsts (X) 9, Life insurance policies (indicate face value, cash surrender value and ourrent beneficiaries) ( ) 10, Annuities ( ) 11. Gifts ( ) 12. Inhelitanoes ( ) 13, Patents, copyrights, inventions, royalties () 14, Personal property outside the home (X) IS, Businesses (list all owners, including percentage of ownership, and officer/director positions held by a party with company) ( ) 16, Employment tennination benefits - severance pay, worker's compensation claim/award ( ) 17, () 18 (X) 19, () 20, ( ) 21. ( ) 22. ( ) 23, (X) 24. (X) 25, () 26, Profit sharing plans Pension plans (indicate employee contribution and date plan vests) Retirement plans, Individual Retirement Accounts Disability payments Litigation claims (matured and unmaturcd) MilitarylVA benefits Education benefits Debts due, including loans, mortgages held Household fillllishings and personalty (include as a total category and attach itemized list if distribution of such assets is in dispute) Other J j ~ ';l j ~ f' 'c; ~ t~ il~ I~ ,~ a- 0- a- - 00 ~ "'t! 3-8 00 ..; ~ ~ 1~ '~'E! e ~ '" a- - - it co g coer ..; j l' ..; Po ~, '-; ,., ,a MOl ~ dO ] j or- ,:/I </I S </I~~, ~~ t ~h p" .... ..... ..: "s .... "s 'll :.: ~J 0 ~ .i:~~ II II II ~ i' u ~ ;'~ " II ~ ~ II ~ .~ :q " e Cl.,~ ~ ';;j ~ Cl.,';i;:l; > > ! I I g ~ ~ l g g g I g z >- >- z z z z (:I 8 8 8 8 8 r- 8 '" is ~ ~ ~ ,,~ .,. .... ~ J ~ ~ '" ~ '" ~ il '" !8 ~ or( ~ ~~ >q > r- ,., ,.; a- d d ~ N ~~ N N ;;I; ,., !;; ... ... ... ... ... :::> ::: 1 ] lJ JJ JJ ~~ Jj Ii I = 'S ]12. 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Law School Tuition and Fees $1,250,00 1\1 I I L I' EDUCATION: Law School Books and Supplies $ 150.00 PERSONAL: Jr. " ~ , Clothing $250.00 Food $540,00 HairdresserlNails $115,00 MISCELLANEOUS: Papers/BookslMagazines $ 20,00 Entertainment $150,00 Pay T,V, $ 29.00 Vacation $300,00 Gifts $200,00 Legal Fees $500,00 Charitable Contributions $ 50,00 Pet Care Expenses (Grooming/F ood/Kennel/ShotslLicense, etc,) $ 50,00 TOTAL EXPENSES $5,982.00 In the Court of Common Pleas of CUMBERLAND County, Pennsylvunla DOMESTIC R.:LATIONS SECTION MARTHA S, HARNER ) Do.kcl Numhcr 90-1249 CV PllIlullff ) VS, ) PACSES CII:'C Numhcr 914100330 ROBERT H, HARNER ) DcfcuulIUI ) Othcr StlllC ID Numher 0-27919 O.'d.ltl: AND NOW to Wil, this OCTOBER 20, 1999 it is hereby Ordered that: UPON CONSIDERATION OF THE RECOMMENDATION OF THE APL CONFERENCE OFFICER IT I~ HEREBY ORDERED AND DIRECTED THE REQUEST FOR ALIMONY PENDENTE LITE IS DENIED, PURSUANT TO RULE 1910,16- (j) AND HUSBAND HAVING THE CARE AND CUSTODY OF THE PARTIES' THREE CHILDREN, BY THE COURT: O~OI R.J. Shadday _ CC I Petit I,mer and R('SP"nd(\nt~ ' Scrvl.c Typc MQI..6-, I\0d e ~j , '. '. \'1\1:\,,\1 \c\ r x\\, \ \) ((C),~'\'\3 N<.,~,i' '. - \",\;),,:>\'1''' .JUDGE Form OE-OO I Workcr tD 21005 . MARTHA S. HARNER Plaintiff IN THE COURT OF' COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. ROBERT H. HARNER Defendant NO. 646 SUPPORT 1998 PACSES # 075100257 MARTHA S. HARNER Plaintiff IN THE COURT OF' COMMON PLEAS OF CUMBERLAND COUNTYr PENNSYLVANIA V. ROBERT H. HARNER Defendant NO. 98-1248 CIVIL TERM DIVORCE ACTION 1JL.BEl SUPPORT BEFORE GUIDO. J. AND NOW, this ORDER OF COUR'l' 1'1"'- _ day ~~ER r 1998r it is hereby ordered and directed as followsl 1) Plaintiff's claim for spousal support is DENIED. 2) Defendant is directed to pay Plaintiff child support in the amount of $1,319 per month conunencing June 16, 1998 and ending on September 1998. 3) Defendant is directed to pay Plaintiff APL of $lr167.00 per month conunencing September 19, 1998, said amount. being the net amount due after deducting the child support obligation of Plaintiff to Defendant in accordance with the instructions of Pa. Rule of Civil Procedure 1910.16-S(j). He is further directed to maintain health insurance coverage on Plaintiff as part of the APL award. NO. 98-00646 SUPPORT 98-1248 CIVIL asking that the order entered in favor of Plaintiff be terminated and that a new child support order be entered in his favor. At about the same timer Plaintiff filed a petition for alimony pendente lite. A hearing was held before this Court on November 20, 1998. We have been ask to decide the following issues: Whether Wife is entitled to spousal support. The net monthly earnings or earning capacity of the parties. The amountr if any, alimony pendente lite to which wife is entitled. The amount of child support each party owes the other. The parties have agreed that the end date for any spousal support and child support order in favor of Plaintiff shall be September 19, 1998. They have also stipulated that the beginning date of any support order against Plaintiff, as well as any alimony pendente lite order in favor of Plaintiff, shall be on September 19r 1998. Each party has filed a brief. This matter is now ready for disposition. FINDINGS OF FACT I) Plaintiff Martha S. Harner is forty-four (44 ) year.s old. 2 ) Defendant Robert H. Harner is forty-five (45 ) years old. 3) The parties were married on September 11, 1976. They separated on March 12r 1998. 4) The parties have three (3) childrenr Joseph, born 3-23-81, Elizabeth, born 5-10-83, and Katherine born 5-10-83. 2 NO. 98-00646 SUPPORT 98-1248 CIVIL 5) The Defendant has been a funeral director since 1976. 6) Plaintiff graduated from Bucknell in 1976 with a degree in English. She is certified to teach. 7) Prior to the birth of their first child, Plaintiff worked in a real estate office and as an employment counselor. She earned approximately $13,000 per year. 8) On April 1, 1990, Defendant purchased the funeral home in which he had been employed, He is now the owner of Myers-Harner Funeral Home, Inc. 9) After the birth of the parties' first child, they agreed that plaintiff would be a "stay at home Mom;" During the years from 1981 through the date of separation, Plaintiff's only employment outside the home was as a substitute teacher and as the part time bookkeeper for Myers-Harner Funeral Home, Inc. 10) lieI' income as a substitute teacher was nominal. Her income at the Funeral Home was $21,000 per year.' 11) Husband left the marital home on March 12, 1998. He fired Plaintiff from her bookkeeping position at the time of separation. 12) When the parties separated, Joseph went to live with Defendant and the twins remained with Plaintiff. 13) Defendant did not articulate any :t'easons for leaving the 'There is no question that Plaintiff earned the $21,000 per year that she was paid. Aftl3r she left the funeral home, Defendant was required to hire another part time employee to perform her duties. He is paying that employee about the same amount Plaintiff was earning. 3 NO. 98-00646 SUPPORT 98-1248 CIVIL marital home other than that the parties had agreed to separate.' 14) Plaintiff readily admitted that she has been involved in two extra marital sexual relationships since the time of separation. The first began shortly after separation and continued into the summer. The second began after the first ended and was still ongoing at the time of the hearing in this matter. 15) In November of 1997, the parties agreed that Plaintiff would quit her job at the funeral home so that she could enroll in law school. 16) Plaintiff was accepted to Dickinson School of Law in March of 1998. However, it is not clear whether the acceptance came before or after the parties' separation on March 12. 17) She became enrolled as a full time student at the Law School in September of 1998. 18) Plaintiff has not worked since the time of separation. 19) F.com the time of separation until September of 199B Plaintiff had an earning capacity of $21,000 per year grossr or $1406 per month net. Beginning in September, her ;)et earning capacity was reduced to $1,000 per month. 20) Defendant is the owner of all the stock of Myers-Harner Funeral Home, Inc. 21) The parties have accumulated a little over one million 'Defendant's Counsel did elicit testimony from Plaintiff to the effect that she had a suspicious relationship with a classmate of the parties' oldest son. However, the evidence adduced was insufficient to establish grounds for divorce. 4 NO. 98-00646 SUPPORT 98-1248 CIVIL ($1,000,000) dollars of marital property, almost all of which is in Defendant's possession. 22) Defendant has not been spending any of the interest dividendsr or capital gains generated by the marital property. He supports himself and the children entirely from the income generated by the Myers-Harner Funeral llome, Inc. 23) Gross revenues at the funeral home are down approximately 15% in 1998 as compared to 1997. 24) Defendant has a net disposable income of $67,535.00 per year. This amounts to $7295.00 per month. 25) Neither party has offered any reason to justify a deviation from the support guidelines. !)ISCUSSION SPOUSAL SUPPORT We will first address the issue of spousal support. There is no question that the Defendant has failed to prove that he had grounds for divorce at the time he left the marital residence. Thereforsr as of the time of separation, the plaintiff was entitled to spousal support. See Little v. Little, 47 Cumbo 131 (1998). Howeverr our inquiry does not end there. The obligation to support a dependent spouse continues until the conduct of the dependent spouse provides a ground for divorce. Roach v. Roach, 337 Pa.Super. 440, 487 A.2d 27, (1985). Plaintiff candidly admitted that she has been romantically and sexually involved with other men almost continuously since the 5 NO. 9B-00646 SUPPORT 98-1248 CIVIL parties' oeparation. This oase is identioal to the oase of Williams v. williaml, 113 Dauph. 323 (1993) wherein Judge Turgeon held that a spouse's post separation adultery preoluded her from obtaining spousal support.' Since the first meretricious relationship began well before the filing of her complaint for support, and since adultery is a ground for divorce,' we must conclude that Plaintiff is not entitled to spousal support. EARNING CAPACITY OF THE PARTIES Defendant has asked us to accept his w-2 figure of $49,400 as his gross income. plaintiff argues that his actual gross income is no less than his 1997 gross income of $194,634 as determined by her' expert. We find that neither position presents a true picture of Defendant's disposable income. We have determined Defendant's annual net disposable income to be $87,535. We started with his 1997 net disposable income as determined by Plaintiff's expert on Schedule 1 of plaintiff's Exhibit 1.' We subtracted the interest, dividends and capital gains which are accumulati,ng on the marital property and which will be subject to equitable distribution at a later date. We 'Judge Turgeon did recognize that a defendant's prior infidelity would preclude him from raising the subsequent infidelity of his spouse as a defense to a claim for spousal support. However, in the instant case, as in the Williams case, there is no allegation as to the Defendant's lack of fidelity. '23 Pa.C.S.A. S 3301 (a) (2). 'We found the testimony of Plaintiff's expert to be generally more credible than that of Defendant's expert. 6 NO. 98-00646 SUPPORT 98-1246 CIVIL further subtracted the health insurance payments which are a legitimate fringe benefit paid by his employer. Finally, we reduced the resulting figure by 15% to account for the business downturn in 1998.' Our computations were as followsl $147,998 DisDosable income after taxes -6,671 Dividends and interest -7,893 Capital gains -24r90l Rental income' -=.?-illl.......-._ Heal tlL ins\,1rall@' $102,982 Adjusted disposable income - 15.447 ,_--.!:Lgsiness reduction $ 87,535 Net annual disposable income In view of the abover we find that Defendant's net monthly income is $7295. We now move to the earning capacity of Plaintiff. According to the testimony, she is certified to teach. She did, in fact, work as a substitutt teacher from time to time during the marriage. Plaintiff also had substantial experience as the bookkeeper for the family funeral home for many years, Based upon her education, training, and experiencer we conclude that at the time of separation she was able to find another job making at least $21,000 per year. However, Plaintiff contends that she can no longer work full time because she is at tending law school. Therefore, she argues, 'Defendant's expert testified that the business was off by about 15% during the first six months. Additionally, Plaintiff confirmed that the number of funerals Defendant projected doing in 1998 was about 15% less than the number done in 1997. The new 'This income was used to pay Plaintiff's salary in 1997. rent has been reduced and the salary is now being pald to employee from the funeral home. the 7 NO, 98-00646 SUPPORT 98-1248 CIVIL her net earning capacity is only $1000 per month. This poses an interesting question. May the Plaintiff's decision to pursue her education in order to change careers operate to reduce her earning capacity for the purpose of determining APL or child support? In the instant case, we conclude that it may. At the outset, we note that the case law is far from clear on this point. There are those cases which hold that a spouse may not voluntarily reduce his or her income and thereby secure a reduction in child support. Weiser v. Weiser, 288 Pa. Super. 488, 362 A.2d 287 (1976). This ia ao even if the reduction in income is the result of a decision to pursue an education which would eventually result in greater earnings. Snively v. Snively, 206 Pa. Super 278, 212 A.2d 905 (1965). On the other hand, there are those cases which have held that a support obligation may be based upon the reduced earnings of a spouse who has elected to pursue an education. See Giamber v. Giamberr 255 Pa. Super. 111r 386 A.2d 160 (1978) dealing with child support, as well as Lazarou v. Lazarou, 180 Pa. Super. 342r 119 A.2d 605 (1956) dealing with spousal support and McNultv v. McNulty, 500 A.2d 876, 347 Pa. Super. 363 (1985) dealing with APL. The case before us is similar to Beegle v. Resler, 395_pa. Super. 174, 576 A.2d 1100, (1990). In Beeqle the defendant lost his full time job through no fault of his own. The Court held that Defendant's decision to further his education was appropriate. Thereforer he could not be penalized for only 8 NO. 98-00646 SUPPORT 98-1248 CIVIL working on a part time basis. In the case at bar, Defendant fired Plaintiff from a part time job where she was earning $21,000 per year. We cannot fault her for electing to pursue an education especially, where it had been previously agreed upon by the parties. We are satisfied that she could not find another part time posit.ion earning over $20 per hour while attending school. We find that a job paying $10 to $12 per hour is more realistic. Therefore, we hold that a net earning capacity of $1000 per month is reasonable commencing in September of 1998. ALIMONY PENDEN~E LITE While conduct providing a ground for divorce precludes spousal supportr it is not a bar to Plaintiff's claim for APL, Q~ Keller v. Keller, 419 A.2d 49, 275 Pa.Super. 573, (1980) and McKelvey v. McKelv~r 16 D&C 3d 611 (1980). Applying the Support Guidelines Formula contained in Pa. Rule of Civil Procedure 1910.16-3 we compute the APL due Plaintiff to be $1,889 per month. · In her brief, Plaintiff has requested that we make the API, award retroactive to the filing of the Divorce Complaint. We are unwilling to do this for several reasons. First and foremostr the parties agreed to use September 19, 1998 as the commencement . $7r295 .:.1.000 $6,295 x .39, $1,889 Defendant's Net Monthly Income Plaintiff's Net Monthly Earning Capacity APL Due Plaintiff 9 NO. 98~00646 SUPPORT 98-1248 CIVIL date Clf any APL award. Secondly, although plaintiff raised a claim for APL in her divorce complaint, she did not file a petition to bring the matter to issue until September 15, 1998. Pa. Rule of Civil Procedure 1920.31(a) provides that when a claim fOI' APL is filed as a count in a divorce action, the award shall be retroactive to the date of the written demand for a hearing. I I In this case the petition fHed with the Domestic Relations Office on September 15, 1998 constitutes the first such written demand for a hearing. In view of the above, we find that Plaintiff is entitled to an award of APL in the amount of $1889 per month commencing on September 19, 1998. We also direct t~at Defendant maintain medical insurance on Plaintiff as part of this award of APL. CHXLD SUPPORT Two of the parties' children lived with Plaintiff and one lived with Defendant from the time of separation until September 1998. All three of the children have lived with Defendant since I I , , that time. Therefore, we must determine the amount of child support Defendant owes to Plaintiff for the three month period from June 16, 1998 through September 19, 1998. We must also determine the amount of child support Plaintiff owes to Defendant commencing September 19, 1998. In determi.ning the support owed by Defendant to Plaintiff, we have applied the formula set forth in Pa. Rule of Civil Procedure 1910.16~3 in accordance with the directions set forth r f 10 NO. 98-00646 SUPPORT 98-1248 CIVIL in Pa. Rule of civil Procedure 1910.16-5(h) dealing with divided custody situations. We have determined that the net child support obligation of Defendant to Plaintiff for the three month between ,lune 16, 1998 and September 19r 1998 is $1319 per month. In determining the child support owed by Plaintiff to Defendant we have applied the formula set forth in Pa, civil Procedure 1910.16-3 in accordance with the directions set forth in Pa. Rule of Civil Procedure 1910.16-5(j) dealing with child support obligations when the custodial parent owes APL to the non-custodial parent. We have determined that the child support obligation of plaintiff to Defendant is $722 per month commencing September 19, 1998. Deducting that amount from the $1889 APL obligation of Defendant to Plaintiffr we hold that Defendant should pay Plaintiff net APL of $1167 per month effective September 19, 1998. CONCLUSION Based upon the foregoing, we conclude that Plaintiff is not entitled to spousal support. Furthermore, based upon Defendant's net monthly income of $1295 and Plaintiffs net monthly earning capacity of $1406 until September 1998 and $1000 per month thereafter, we have determined the following; Defendant is obligated to pay Plaintiff child support of $1319 per month from June 16, 1998 to September 19, 1998. Defendant is obligated to pay Plaintiff APL of $1889 per month commencing on September 19, 1998, plus maintain health insurance coverage on her. 11 MARTHA S. HARNER, Plain tilT : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW v. NO, 98-1248 CIVIL n:RM ROBERT H. HARNER, Defendant IN DIVORCE ~.EMFm On behalf of Martha S, Hamer, the Plaintiff in the above-captioned action, Kathleen Carey Daley, Esquire, does hereby file the following pre-trial statement for consideration of the Court: 1, Marital Assets - Attached hereto please find a listing of all marital assets including their value, date of valuation, determination of whether any p0l1ion is non-marital and any liens or encumbrances thereon, and a listing of non-marital asscts, their value, date of valuation, and any liens or encumbrances thereon: Please refer to Plaintiffs Inventory, Exhibit "A," which includes this information, 2, The names and addresses of each expert whom the Plaintiff intends to call at trial Includes the following: Bruce 1. Brown of Brown, Schultz, Sheridan & Fritz, an accounting firm, who will offer testimony about the value of Myers-Hamer Funeral Home,lnc, The address ofMr. Brown's firm is: 1011 Mumma Road, Wormleysburg, Pennsylvania 17043, A real cstate appraiser who will offer testimony regarding the value of the marital residence and the commercial real property in Camp Hill, owned jointly by the pat1ies, 3, The Plaintiff intends to testify at trial, If any additional witnesses are identified, their names and addresses will be provided to Dcfendant prior to trial. 4, A list of all exhibits which the Plaintiff intends to offer into evidence: A, The Inventory of Plaintiff, Wife. B. The Income and Expense Statement of Plaintiff, Wife, c. Reports and analysis prepared on behalf of Bruce 1. Brown of Brown , Schultz, Sheridan & Fritz regarding the value of Myers-Harner Funcral Home, Inc. S, The gross income of the Plaintiff from all sources including payroll deductions, recent state and federal income tax returns Rnd pay stubs: Please refer to Plaintiff's Income and Expense Statement, Exhibit "B," which includes this infonnation, 6, A listing of the expenses of the Plaintiff: Please refer to Plaintiff's Income and Expense Statement, Exhibit "B," which includes this infonnation, 7, The valuation of pension or retirement benefits and a calculation of the marital portion thereof and the facts and documentation upon which the party relies to support the valuation: Please refer to Plaintiffs Inventory, Exhibit "A," which includes this information. S, Claim for counsel fees: The Plaintiff does not make a claim for counsel fees, 9, Tangible personal property values: The Plaintiff will testify as to the values of' all tangible personal property in question, ] 0, Listing of marital debts: Please refer to Plaintiff's Inventory, Exhibit "A," which includes this information, 1 ]. The Plaintiff makes the following propofled resolution of the economic issues: A Plaintiff will retain possession of her 1997 Chrysler Sebring automobile, B. Plaintiff will retain possession of her personal property, household goods and furnishings, furs, and jewelry, C, Plaintiff will retain possession of her Merrill Lynch account, her IRA account, and her Raymond James/Passport account. 0, Plaintiff will re(\eive a cash distribution of Five Hundred Thousand ($500,000,00) Dollars, which can be achieved through the immediate refinancing of the marital assets, E, Plaintiff will receive alimony in the amount ofThree Thousand Five Hundred ($3,500,00) per month, for a period offtve (5) years, 12, Other matters: Plaintiff reserves the right to call such additional witnesses or offer such additional exhibits or other evidence as may be necessary to respond to any evidence submitted by Defendant in his case During this hearing, Defendant denicd Plaintifl's entitlemcnt of spousal support, 7, On or about Septcmbcr 15, 199B, Wife t1Ied t()r alimony pendente lite, 8, On or about October 20, 1998 a support confercl1cc was held bclore R, J. Shadday to determinc Plaintitrs rcquest for alimony pendcnte lite, 9, On October 20, 1998 Plaintill's requcst for alimony pendente lite was denied, A copy of the Order of Court, dated Octobcr 20, 1998, is attached hereto and incorporated herein as Exhibit "B," 10, Plaintilf t1Ied an appeal to the alimony pendente litc order entered on October 20, 1998. II. On or about Novcmber 20, 1998 a hearing was held before The Honorable Edward E. Guido regarding Plaintiff's appeal. 12, On Dcccmber 16. 1998 an Order of Court was entered directing Defendant to pay to Plaintiff the sum 01'$1,889,00 per month as alimony pendente lite, A copy of the Order of Court, dated Dccember 16, 1998, is attached hcreto and incorporatcd herein as Exhibit "c." 13, Since thc entry of the December 16, 1998 Order, the parties' son, Joscph P. Harner, turned eighteen years old on March 23, 1999 and graduated from high school in June, 1999, 14, As a result of Jo~eph p, Harner turning eighteen and graduating from high school, the alimony pendente lite order, entered on December 16, 1998, should be recalculated and modified, 15, As a result of the amendmellls made to the support guidelines, which became effective April I , 1999, the alimony pcndente lite order, entered on Dt'Cember 16, 1998, should be rccalculated and modified, DR . " vs, . PLAIm'IFF I IN 'mE COURT OF ~ PLE;iS OF CUMBERLAND CClUNl'Y. PENNSYLVIINIA In1ESTIC REJ.J\TIQNS SECTION CIVIL ACTION - SUPPOm' MARTHA S, HARNER ROBERT H, HARNER DEFENDlINl' 00. OF \ I.: I: It..:., I )~ l'[ CCMPLluNI' FtJR SUPPOm' 'It) 'mE HOOORABLE JUDGES OF SAID coum': 1. Plaintiff resides at 852 Wynnewood Road, Camp Hill, PA 17011 2. Defendant resides at 1903 Market Street, Camp Hill, PA 17011 3. (a) Plaintiff and l>afendant were lMn'ied on September 11, 1976 at Gettysburg, Pennsylvania (b) Plaintiff and Defendant were separated on March"4, 1998 (c) Plaintiff and Defendant were divorced on N / A at 4. Plaintiff and Defendant are the parents of the following children: (a) Born of nurrillge Narre Birth Date ~ Resldence -- Joseph P. Harner .Q2.1 ...1:..31: ~ 17 1903 Market St. , C,H. , P Eli.zabeth A. Harner Jl5/-1:..~ 83 15 852 Wynnewood Rd. , C,H,P Kathe!ine L, Harner ~/-1:..~ ~ 15 852 Wynnewood Rd. , C.H, P. _1_1.- _1_1- (b) Born out of wedlock N/A _1_/- _1_1- _1_..1- 000 H140 OUMBERLAND 21 lnwc Infamurian QuCllialllWrc/O.lU SlIcel ClOlDREN'S INfORAfA nON ((k(cD<l.anr's childrcn unly) NAME (~~r. Fll'il. Middlcl PA TEAAITY illf QQ1!. 6Qli ~ EST AlIl1SHeDl 202 66 1627 03-23-81 17 M YES OR NO -- 202 66 1804 05-10-83 15 F YES OR //0 202 66 3389 05-10-83 15 F YES Ok //0 YES OR //0 YES OR //0 . . YES OR 110 Harner, Joseph p, Harner, Elizabeth A, Harner, Katherine L. DEFENDANT'S INFORMATION Name (Lasl, First, Middle) Harner, Robert H. Maiden Name/AIIa.s N/ A Address 1903 Market Street Camn Hi 11 204-40-3881 -- Physical Description: HI. WI. Eyes Defendant's Attomey Samuel L. Andes, Esquire Defendant's Attomey Address P .0. Box 168, Lemoyne, Employer Name Mvers -Harner Funeral Home Employer Address 1903 Market Street Camp Hill, PA :T1011 Employer Phone (717) 737-9961 QAC~U4 4U j!S81 Medical Insurance Carrier Name Blue Cross/Blue Shield Policy,fj02149000 (Croup) McdicallnsuranccCarrierAddress Camp I Center, Harrisburg, PA 17177-8988 Carrier Phone (800) 255-0378 City SSN State ...ELL Zip Code DOS 031 21/53 17011 County Cumberland Telephone ( 717) 737 - 9961 Hair Race Caucasian PA 17043 Nel~ Scrvi~c Type Pace 2 o( ) FOnD IN.oo2 WurkerlD , .In the Court of Common Pleas of CUMBERLAND County, Pennsylvania DOMESTIC RELATIONS SECTION MARTHA S, HARNER ) Dockel Number 99-1?49 r::v Plalnliff ) vs. ) P ACSES Case Number 914100330 ROBERT H. HARNBR ) Defendanr ) Other Slate ID Number 0-27919 !l!:lkr AND NOW to wit, this OCTOBER 20, 1999 it is hereby Ordered that: UPON CONSIDERATION OF THE RECO~~NDATION OF THE APL CONFERENCE OFFICER IT IS HEREBY ORDERED AND DIRECTED ~'HE REQUEST FOR ALIMONY PENDENTE LITE IS DENIED, PURSUANT TO RULE 1910,16- (j) AND HUSBAND HAVING THE CARE AND CUSTODY OF THE PARTIES' THREE CHILDREN. , ,~)l'f":: r<r:I';JV t::r"JI""l'J', i".)r.:i"'\'~!R")" . 1 ,,\.,J h~ t... ~,'r 1 'I "'1~.. t t t,.(oJ" .... ; '1 '1'.w, ';11'''''1 'Il):'r(!"; I '"., , " "" -',," ....'1 tl'~A .....1.'. I". I.... ".,t . Ir.... . ~ ;11, ulN , II 'r 0 "."21 (' I '" I'" I' -, .... '[".' fJ' 1,1 j lrl .;J';;__ ;. ,',{~ ,j -~..J< L' \,\~ll:......jl ... . "1'1'1" ~1f',.'1 u~. C { '..^r.', ! (I, Ii' {~ \'f\~--' C,(,- . &\U\ \0,'" , BY THE COURT: Prolhonotary DROI R.J. Shadday cc I Petitluner and Respundent Service Type M JUDGE Fonn DE-OOt WorkcrlD 21005 HARNER , v, HARNER PACSES Case Number: 914100330 Other Information (continued): Facts Agreed Upon: Facts in Dispute and Contentions with Respect to Facts In Dispute: BOTH PARTIES INCOMES - Guideline Amount: $ 0,00 I MONTII / MONTII DRS Recommended Amount: $ 0.00 DRS Recommended Order Effective Date: 09/15/99 Parties to be Covered by Recommended Order Amount: !fIFK Guideline Deviation: OYES or GU NO Reason for Deviation: THE AMOUNT WOULD BE CALCULATED UNDER RULE 1910"16-5(il Submitted by: R. j, SHADDAY Date Prepared: OCTOBER 20, 1998 Page 3 of 3 Porm CM.022 Worker 10 21005 Service Type: M NO. 98-00646 SUPPORT 98-1248 CIVIL marital home other than that the parties had agreed to separate.' 14) Plaintiff readily admitted that she has been involved in two extra marital sexual relationships since the time of separation. The first began shortly after separation and continued into the sununer. The second began after the first ended and was still ongoing at the time of the hearing in thia matter. 15) In November of 1997, the parties agreed that Plaintiff would quit her job at the funeral home so that ahe could enroll in law school. 16) Flaintiff was accepted to Dickinson School of Law in March of 199B. However, it is not clear whether the acceptance came before or after the parties' separation on March 12. 17) She became enrolled as a full time student at the Law School in September of 199B. lB) Plaintiff has not worked since the time of separation. 19) From the time of separation until September of 199B Plaintiff had an earning capacity of $21,000 per year gross, or $1406 per month net. Beginning in Septemberr her net earning capacity was reduced to $1,000 per month. 20) Defendant is the owner of all the stock of Myers-Harner Funeral Home, Inc. 21) The parties have accumulated a little over one million 'Defendant's Counsel did elicit testimony from Plaintiff to the effect that she had a suspicious relationship with a classmate of the parties' oldest son. However, the evidence adduced was insufficient to establish grounds for divorce. 4 NO. 98-00646 SUPPORT 98-1248 CIVIL ($1,000,000) dollars of marital property, almost all of whioh is in Defendant's possession. 22) Defendant has not been spending any of the interest dividends, or capital gains generated by the marital property. He supports himself and the children entirely from the income generated by the Myers-Harner Funeral Home, Inc. 23) Gross revenues at the funeral home are down approximately 15% in 1998 as compared to 1997. 24) Defendant has a net disposable income of $87,535.00 per year. This amounts to $7295.00 per month. 25) Neither party has offered any I'eason to justify a deviation from the support guidelines. DISCUSS ION SPOUSAL SUPPORT We will first address the issue of spousal support. There is no question that the Defendant has failed to prove that he had grounds for divorce at the time he left the marital residence. Therefore, as of the time of separation, the Plaintiff was entitled to spousal support. S~ Little v. Little, 47 Cumbo 131 (1998). However, our inquiry does not end there. The obligation to support a dependent spouse oontinues until the uonduct of the dependent spouse provides a ground for divorce. Roach V. RoacQ, 337 Pa.Super. 440r 487 A.2d 27, (1985). Plaintiff candidly admitted that she has been romantically and sexually involved with other men almost continuously since the 5 '~ NO. 98-00646 SUPPORT 98-1248 CIVIL parties' separation. This case is identical to the case of Williams v. Williams, 113 Dauph. 323 (1993) wherein Judge Turgeon held that a spouse's post separation adultery precluded her from obtaining spousal support.' Since the first meretriciDus relationship began well before the filing of her complaint for support, and since adultery is a ground for divorce,' we must conclude that Plaintiff is not entitled to spousal support. EARNING CAPACITY OF THE PARTIES Defendant has asked us to accept his w-2 figure of $49,400 as his gross income. Plaintiff argues that his actual gross income is no less than his 1997 gross income of $194,634 as determined by her expert. We find that neither position presents a true picture of Defendant's disposable income. We have determined Defendant's annual net disposable income to be $87,535. We started wi.th his 1997 net disposable income as determined by Plaintiff's expert on Schedule 1 of Plaintiff's Exhibit 1.' We subtracted the interest, dividends and capital gains which are accumulating on the marital property and which will be subject to equitable distribution at a later date. We 'Judge Turgeon did recognize that a defendant's prior infidelity would preclude him from raising the subsequent infidelity of his spouse as a defense to a claim for spousal support. Howeverr in the instant case, as in the Williams case, there is no allegation as to the Defendant's lack of fidelity. '23 Pa.C.S.A. S 3301(a) (2). 'We found the testimony of Plaintiff's expert to be generally more credible than that of Defendant's expert. 6 . . NO. 98-00646 SUPPORT 98-1248 CIVIL further subtracted the health insurance payments which are a legitimate fringe benefit paid by his employer. Finally, we reduced the resulting figure by 15% to account for the business downturn in 1998.' Our computations were as follows: $147r998 -6,671 -7,893 -24,901 -5,551 $102,982 - 15.447 $ 87r535 Disposable income after taxes Dividends and interest Capital gains Rental income' Health insurance Adjusted disposable income Business reduction Net annual disposable income In view of the above, we find that Defendant's net monthly income is $7295. We now move to the earning capacity of Plaintiff. According to the testimony, she is certified to teach. She did, in fact, work as a substitute teacher from time to time during the marriage. Plaintiff also had substantial experience as the bookkeeper for the family funeral home for many years. Based upml her educationr trainingr and experiencer we conclude that at the time of separation she was able to find another job making at least $21,000 per year. fIoweverr Plaintiff contends that she can no longer work full time because she is attending law school. Thereforer she argues; 'Defendant's expert testified that the business was off by about 15% during the first six months. Additionally, Plaintiff ~onfirmed that the number of funerals Defendant projected doing 1n 1998 was about 15% less than the number done in 1997. The new 'This income was used to pay Plaintiff's salary in 1997. rent has been reduced and the salary is now being paid to the employee from the funeral home. 7 NO. 98-00646 SUPPORT 98-1248 CIVIL hor net earning capacity is only $1000 per month. This poses an intoreating question. May the Plaintiff's decision to pursue her education in order to change careers operate to reduce her earning oapacity for the purpose of determining APL or child oupport? In the instant case, we conclude that it may. At the outset, we note that the case law is far from clear on this point. '1'here are those cases which hold that a spouse may not voluntarily reduce his or her income and thereby secure a reduction in child support. ~e~ser v. Weiser, 288 Pa. Super. 488, 362 A.2d 287 (1976). This is so even if the reduction in income is the result of a decision to pursue an education which would eventually result in greater earnings. Snivel~ Snively, 206 Pa. super 278, 212 A.2d 905 (1965). On the other hand, there are those cases which have held that a support obligation may be based upon the reduced earnings of a spouse who has aleeted to pursue an education. See Giamber v. Giamber, 255 Pa. Super. 111, 386 A.2d 160 (1978) dealing with child support, as well as Lazarou v. LazaroU, 180 Pa. Super. 342r 119 A.2d 605 (1956) dealing with spousal support and McNulty v. McNulty, 500 A.2d 876, 347 Pa. Super. 363 (1985) dealing with APL. The case before us is similar to Beeale v. Resler, 395_pa. Super. 174, 576 A.2d 1100, (1990). In Beeat~ the defendant lost his full time job through no fault of his own. '1'he Court held that Defendant's decision to further his education was appropriate. Therefore, he could not be penalized for only 8 ~ . NO. 98-00646 SUPPORT 98-1248 CIVIL working on a part time basis. In the case at bar, Defendant fired Plaintiff from a part time job where she was earning $21,000 per year. We cannot fault her for electing to pursue an education especially, where it had been previously agreed upon by the parties. We are satisfied that she could not find another part time position earning over $20 per hour while attending school. We find that a job paying $10 to $12 per hour is more realistic. Therefore, we hold that a net earning capacity of $1000 per month is reasonable conunencing in September of 1998. ALIMONY PENDENTE LITE While conduct providing a ground for divorce precludes spousal support, it is not a bar to Plaintiff's claim for APL, See Keller v. Keller, 419 A.2d 49, 275 Pa.Super. 573, (1980) and McKelvev v. McKelveYr 16 D&C 3d 611 (1980). Applying the Support Guidelines Formula contained in Pa. Rule of Civil Procedure 1910.16-3 we compute the APL due Plaintiff to be $1,889 per month. · In her briefr Plaintiff has requested that we make the APL award retroactive to the filing of the Divorce Complaint. We are unwilling to do this for several reasons. First and foremost, the parties agreed to use September 19, 1998 as the conunencement . $7,295 -1.000 $6,295 x .30 $1,889' Defendant's Net Monthly Income Plaintiff's Net Monthly Earning Capacity APL Due Plaintiff 9 . NO. 98-00646 SUPPORT 98-1248 CIVIL date of any APL award. Secondly, although Plaintiff raised a claim for APL in her divorce complaint, she did not file a pet.ition to bring the matter to issue until September 15, 1998. Pa. Rule of Civil Procedure 1920.31(a) provides that when a claim for APL is filed as a count in a divorce action, the award shall be retroactive to the date of the written demand for a hearing. In this case the petition filed with the Domestic Relations Office on September 15r 1998 constitutes the first such written demand for a hearing. In view of the above, we find that Plaintiff is entitled to an award of APL in the amount of $1889 per month commencing on September' 19, 1998. We also direct that Defendant maintain medical insurance on Plaintiff as part of this award of APL. CHILD SUPPORT Two of the parties' children lived with Plaintiff and one lived with Defendant from the time of separation until September 1998. All three of the children have lived with Defendant since that time. Therefore, we must determine the amount of child support Defendant owes to Plaintiff for the three mont.h period from June 16, 1998 through September 19, 1998. We must also determine the amount of child support Plaintiff owes to Defendant commencing September 19, 1998. In determining the support owed by Defendant to Plaintiff, we have applied the formula set forth in Pa. Rule of Civil Procedure 1910.16-3 in accordance with the directions set forth 10 , . . NO. 98-00646 SUPPORT 98-1248 CIVIL in Pa. Rule of civil Procedure 1910.16-5(h) dealing with divided custody situations. We have determined that the net child support obligation of Defendant to Plaintiff for the three month between June 16, 1998 and September 19, 1998 is $1319 per month. In determining the child support owed by Plaintiff to Defendant we have applied the formula set forth in Pa. Civil Procedure 1910.16-3 in accordance with the directions set forth in Pa. Rule of Civil Procedure 1910.16-5(j) dealing with child support obligations when the custodial parent owes APL to the non-custodial parent. We have determined that the child support obligation of Plaintiff to Defendant 1s $722 per month commencing September 19r 1998. Deducting that amount from the $1889 APL obligation of Defendant to Plaintiff, we hold that Defendant should pay Plaintiff net APL of $1167 per month effective September 19, 1998. CONCLUSIO~ Based upon the foregoing, we conclude that Plaintiff is not entitled to spousal support. Furthermorer based upon Defendant's net monthly income of $7295 and Plaintiffs net monthly earning capacity of $1406 until September 1998 and $1000 per month thereafterr we have determined the following: Defendant is obligated to pay Plaintiff child support of $1319 per month from June 16r 1998 to September 19, 1998. Defendant is obligated to pay Plaintiff APL of $1889 per month commencing on September 19r 1998, plus maintain health insurance coverage on her. 11 , . . NO. 98-00646 SUPPORT 98-1248 CIVIL Plaintiff is support of $ 72 2 1998. obligated to pay Defendant child per month commencing September 19r Defendant ehould maintain health insurance on the children. . Deducting the $722 child support which Plaintiff is obligated to pay Defendant from the $1889 APL which Defendant is obligated to pay Plaintiffr Defendant has a net APL obligation to Plaintiff in the amount of $1167 per month. The parties should share the unreimbursed medical expenses of the children in proportion to their incomes and earning capacity. QRDER OF COURT AND NOW, this 1&1'H day of DECEMBER, 1998, it is hereby ordered and directed as follows: 1) Plaintiff's claim for spousal Rupport is DENIED. 2) Defendant is directed to pay Plaintiff child support in the amount of $lr3l9 per month commencing June 16, 1998 and ending on Septerooer 1998. 3) Defendant is directed to pay PlaintifflU'L of $1,167.00 per month commencing September 19r 1998, said amount being the net amount due after deducting the child support obligation of Plaintiff to Defendant in accordance with the instructions of Pa, Rule of Civil Procedure 1910.16-S(j). He is further directed to maintain health insurance coverage on Plaintiff as part of the APL award. 4) Defendant shall maintain medical insurance coverage on the parties' children. Any unreimbursed medlcal expenses 12 In the Court of Common Pleas 01' CUMBERLAND County. Pellnsylvanla DOMESTIC RELATIONS SECTION MARTHA S. HAANER ) Docket Nlllllher 99-1249 tv Plahulff ) VS. ) PACSES Casc Nlllllher 914100330/D27802 ROBERT H, HAANER ) Defendant ) Oilwr Slale ID Numher ORDER AND NOW, to wit on this 4TH DAY OF AUGUST, 2000 IT IS HEREBY ORDERED that the support order in this case be 0 Vacated or 0 Suspended or (i) Terminated without prejudlcc, effective JULY 14, 2000 , due to: AN AGREEMENT OF THE PARTIES PURSUANT TO THE EQUITABLE DISTRIBUTION SETTLEMENT, THERE IS A REMAINING BALANCE OF $397.94, THE BALANCE IS TO BE PAID IN FULL WITHIN TEN DAYS UPON RECEIPT OF THIS ORDER, '0 ~ ,y\ ~ ()J~/ Edwdrd E, Glll do JUDGE DROI RJ Shudday Kel plu:lntJff defen:lant Kathleen Ikl1ey, Esqul re Sumuel. 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