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HomeMy WebLinkAbout356 S 2002KRISTINE L. HARRISON, Plaintiff Vo KEITH A. HARRISON, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOMESTIC RELATIONS SECTION PACSES NO. 890104462 NO. 02-356 SUPPORT IN RE: PLAINTIFF'S EXCEPTION TO SUPPORT MASTER'S REPORT BEFORE OLER, J. OPINION and ORDER OF COURT Oler, J., October 31, 2003. In this child/spousal support case, Plaintiff has filed an exception to the report of the support master recommending a support payment by Defendant of $441.11 per month, of which $210.37 was allocated to child support for the parties' son and $230.74 was allocated to spousal support.~ Plaintiff's exception may be summarized as follows: The Support Master should not have treated [a certain] $163.60 [monthly insurance payment] as income [to Plaintiff] because the amount does not represent financial resources that are actually available for [Plaintiff]; i.e. she does not receive the $163.60 per month and she has no expectation of receiving it for the foreseeable future. Furthermore, it is inequitable to count this unreceived money as income to [Plaintiff], thus lowering her spousal support, where both parties enjoyed the benefit of the overpayment during the time that they resided together during the marriage.2 After a careful review of the master's report and record, and consideration of the arguments presented in the parties' briefs, the exception will be dismissed. ~ Interim Order of Ct., Jul 28, 2003, Ex. A (Support Master's Report and Recommendation). 2 Pl.'s Exceptions to Support Master's Report and Recommendation, filed Aug. 6, 2003. STATEMENT OF FACTS Plaintiff, Kristine L. Harrison, resides in Mechanicsburg, Cumberland County, Pennsylvania.3 Defendant, Keith A. Harrison, resides in Dillsburg, York County, Pennsylvania.4 The parties were married on June 22, 1985, and separated in February of 2001.5 A divorce action is currently pending.6 The parties have one minor child, Andrew M. Harrison, born September 1, 1987, who resides with Plaintiff.7 Following the parties' separation, Plaintiff filed a complaint seeking both spousal and child support from Defendant.8 The parties have stipulated to a child support obligation on the part of Defendant for the benefit of their son Andrew, in the amount of $210.37 per month.9 Defendant resides with his girlfriend, Tina Watts, with whom he shares living expenses, l0 He filed joint federal tax returns with Plaintiff in both 2001 and 3 N.T. 4, Support Master's Hr'g., Jul. 25, 2003 (hereinafter N.T. ~). 4 N.T. 16. 5 N.T. 5. 6 N.T. 28. According to Defendant, the divorce is pending a resolution by the divorce master of issues related to the distribution of property. N.T. 28; see Harrison v. Harrison, 01-3221 Civil Term (Ct. Com. Pis. Cumberland). ?N.T. 5. 8 Compl., filed Apr. 24, 2002; Amended Compl., filed Apr. 29, 2003. It is noted that the Plaintiff requested and was granted a dismissal of the original complaint. However, about a year later she filed an amended complaint reviving the support action. See id; Order of Ct., May 9, 2002. 9 N.T. 3. An initial order with the incorrect amount of $201.37 was entered on June 11, 2003, but an amended order was entered, in order to correct this typographical error, stating the correct amount of $210.37. See Order of Ct., Jun. 11, 2003; Order of Ct., Jun. 17, 2003. l0 N.T. 29. 2 2002. ~ The parties have stipulated that Defendant has a gross monthly income of $2,382.50.~2 Plaintiff resides with her mother, her brother and the parties' son Andrew, and shares living expenses with her mother.~3 Plaintiff has been disabled since August 7, 1998,TM and receives $774.00 per month in social security disability benefits.~5 In addition, Plaintiff receives $163.60 per month from a third-party disability benefit paid by a private insurance company.~6 The amount of this benefit is determined in part by how much the insured is receiving in social security disability benefits.~7 However, Plaintiff initially failed to inform the private insurance company that she was receiving disability payments from social security,la In March or April of 2001, Plaintiff was put on notice that she had received an overpayment on her insurance policy, because she was receiving both government and private benefits, and would be required to return a portion of the private benefits.~9 Plaintiff estimates the overpayment was $20,000.00.20 This overpayment was received by Plaintiff during the time that the parties were residing together and ended shortly after Defendant left the marital residence.2~ Plaintiff is currently owed a private disability payment of $163.60 per month;22 il N.T. 28. 12 N.T. 3. 13 N.T. 5, 10-11. 14 N.T. 6. 15 N.T. 7. 16 N.T. 7. l? N.T. 9-10. 18 N.T. 10. 19 N.T. 7. 2° N.T. 8. 2~ See Notes 5, 22 N.T. 7. 18-19 and accompanying text. 3 however, Plaintiff is not sent this amount, because it is applied to the overpayment.23 Based upon this information, the support master made the following suggested findings and recommendations: Plaintiff had income from both social security disability benefits and the payments by the private insurance company that now serve to pay back the previously received overpayment.24 Specifically, the support master recommended that monthly payments being applied to the previous overpayment constituted income under the Domestic Relations Code, in the form of "temporary and permanent disability benefits" and/or "income in discharge of indebtedness.''25 The support master, therefore, added together the social security disability payments of $774.00 and the private disability payments, now being applied to the prior overpayment, of $163.60, both of these items being non-taxable, to result in a net monthly income of $937.60.26 The support master, calculating Defendant's net income utilizing a federal income tax filing status of married filing separately,27 determined that Defendant had a monthly net income of $1,917.11.2a The support master then subtracted from Defendant's net income the $210.73 paid each month in child support and Plaintiff's net income of $937.60, resulting in a figure of $768.78, and then multiplied that amount by 30%, 23 N.T. 7-8. 24 Interim Order of Ct., Jul. 28, 2003, Ex. A at 3. 25 Interim Order of Ct., Jul. 28, 2003, Ex. A at 3 citingAct of Oct. 30, 1985, P.L. 264 § 1, as amended, 23 Pa. C.S.A. § 4302 (West 2003). 26 Interim Order of Ct., Jul. 28, 2003, Ex. A at 3. 27 Interim Order of Ct., Jul. 28, 2003, Ex. A at 3-4. It is noted that the parties currently file jointly; however, the master found that it would be more beneficial financially for Defendant to file as married filing separately and based a determination of his income on this status. Id. citingPiso v. Piso, 761 A.2d 1215 (Pa. Super. Ct. 2000). 28 Interim Order of Ct., Jul. 28, 2003, Ex. A at 4. See Cunningham v. Cunningham, 49 Cumberland L.J. 219, 224 n. 32 (2000) (noting Cumberland County's use of a computer program to determine taxes applicable to a party's income). 4 yielding a spousal support obligation of $230.74 per month.29 The master did not deviate from the guideline support obligation.3° When added to the stipulated child support payment, this resulted in a support obligation on the part of Defendant of $441.11 per month.3~ DISCUSSION Statement of Law Review of a Support Master's Report. On a review of a support master's report, a trial court is to employ the same standard as is applicable to review of a divorce master's report. Goodman v. Goodman, 375 Pa. Super. 504, 507, 544 A.2d 1033, 1035 (1988). "While such a report is to be given the fullest consideration, especially with regard to the credibility of witnesses," the findings and conclusions are advisory rather than binding. Id; see McCurdy v. McCurdy, No. 02-0097 Support (Ct. Com. Pls. Cumberland Sept. 13, 2002) (Hess, J.). Insurance Repayment As Income. It is noted that the issue of whether this type of repayment is within the definition of income for purposes of support appears to be one of first impression in Pennsylvania.32 However, Pennsylvania law defining income and the manner in which other states have dealt with this issue are instructive. The Domestic Relations Code defines income, in relevant part, as "... income from discharge of indebtedness; . [and] temporary and permanent disability benefits; .... "Act of Oct. 30, 1985, P.L. 264, § 1, as amended, 23 Pa. C.S.A. § 4302 (West 2003). The Pennsylvania Supreme Court has held that, "in order to be included in the statutory definition of income, a resource must reasonably fit within one of the categories enumerated in Section 4302 [of the 29 Interim Order of Ct., Jul. 28, 2003, Ex. A at 4; see Pa. R.C.P. 1910-16-4(a) Part IV. 30 Interim Order of Ct., Jul. 28, 2003, Ex. A at 4; see Pa. R.C.P. 1910-16-4(a) Part IV. 3~ Interim Order of Ct., Jul. 28, 2003, Ex. A at 4. 32 See Pl.'s Brief at 4. 5 Domestic Relations Code]." Humphreys v. Deross, 576 Pa. 614, 619, 790 A.2d 281,284 (2002). it appears that the states of Hawaii and Delaware, in cases factually similar to the present case, have found that payments being applied to a previous overpayment should be included as income. The Delaware Family Court has explained that the payments should be considered income because, although not being received as tangible cash presently, the party receiving the repayment did receive this income as an asset in the past. Ryle v. Riley, 1999 WL 509702, 2 (Del. Fam. Ct. No. CN93-7i96, 1999) (unpublished opinion).33 The Hawaii intermediate Court of Appeals, although not addressing the matter in detail, has indicated that under certain factual situations this type of repayment may be considered income for purposes of support. Child Enforcement Agency v. Doe, 990 P.2d i 158, i 168 (Haw. Ct. App. 1999). Application of Law to Facts in the present case, based upon the forgoing principles of law, the court believes that Plaintiff's private insurance payments, which are currently being applied to a prior overpayment, properly fit within the statutory definition of income as "temporary and permanent disability benefits" and/or "income from discharge of indebtedness," and thus should be included as income to Plaintiff.34 33 It is noted that, although this opinion is unpublished, the majority of the opinions from the state of Delaware, especially those from the state's family court, are not published and common practice in Delaware is to allow for the citation of these unpublished opinions. See Del. S. Ct. R. 93(d); Del Fam. Ct. R. 107(c) (explaining how to cite unpublished opinions to Delaware Courts); dohnson v. Cambell, 332 F.3d 199, 212 n.9 (3rd Cir. 2003) (noting that Delaware allows for the citation of unpublished opinions); Aquaro v. Zoning BoardofAdjustment of City of Philadelphia, 673 A.2d 1055, 1061 n. 15 (Pa. Commw. Ct. 1996) (noting that, when citing opinions from other jurisdictions, Pennsylvania Courts are to follow the rules of citation from the jurisdiction where the opinion was issued). 34 Plaintiff also argues in her brief that it would be unfair to have the amount applied to the overpayment count as income when Defendant had enjoyment of this overpayment during the marriage. P1.'s Brief at 7-8. However, the court believes that the fairness of the distribution of this debt is an issue properly dealt with by the divorce master and not in 6 Accordingly, in the court's view, the recommendation of the master on this issue was correct. Therefore, the following order will be entered: ORDER OF COURT AND NOW, this 31st day of October, 2003, upon consideration of Plaintiff's exception to the report of the support master, and for the reasons stated in the accompanying opinion, the exception is dismissed and the interim order of court dated July 28, 2003, is entered as a final order. BY THE COURT, /s/J. Wesley Oler, Jr. J. Wesley Oler, Jr., J. Michael R. Rundle, Esq. Support Master Robert E. Rains, Esq. Lucy Johnson-Walsh, Esq. Supervising Attorneys Nicholas Aloia, Certified Legal Intern Family Law Clinic 45 North Pitt Street Carlisle, PA 17012 Counsel for Plaintiff Timothy J. Colgan, Esq. 1 South Baltimore Street Dillsburg, PA 17019 Counsel for Defendant the context of this support mater. See Howe v. Howe, 516 S.E.2d 240, 247 (Va. Ct. App. 1999). 7 8 KRISTINE L. HARRISON, Plaintiff Vo KEITH A. HARRISON, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOMESTIC RELATIONS SECTION PACSES NO. 890104462 NO. 02-356 SUPPORT IN RE: PLAINTIFF'S EXCEPTION TO SUPPORT MASTER'S REPORT BEFORE OLER, J. ORDER OF COURT AND NOW, this 31st day of October, 2003, upon consideration of Plaintiff's exception to the report of the support master, and for the reasons stated in the accompanying opinion, the exception is dismissed and the interim order of court dated July 28, 2003, is entered as a final order. BY THE COURT, J. Wesley Oler, Jr., J. Michael R. Rundle, Esq. Support Master Robert E. Rains, Esq. Lucy Johnson-Walsh, Esq. Supervising Attorneys Nicholas Aloia, Certified Legal Intern Family Law Clinic 45 North Pitt Street Carlisle, PA 17012 Counsel for Plaintiff Timothy J. Colgan, Esq. 1 South Baltimore Street Dillsburg, PA 17019 Counsel for Defendant