HomeMy WebLinkAbout00-5837 CivilKENNETH B. BEAM,
Plaintiff
Vo
DENISE K. BEAM,
Defendant
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
NO. 00-5837 CIVIL TERM
IN RE: PLAINTIFF'S EXCEPTIONS TO DIVORCE MASTER'S REPORT
BEFORE OLER, J.
OPINION and ORDER OF COURT
OLER, J., December 30, 2003.
In this divorce action, which has been pending for more than three years,
Plaintiff husband has filed exceptions to a report of the Cumberland County
Divorce Master.2 The recommendations of the master included a division of
marital property in proportions of 55% for Defendant wife and 45% for Plaintiff
husband, an award of alimony payable to Defendant wife in the amount of
$900.00 per month, and an award of attorney's fees and expenses payable to
Defendant wife in the amount of $1,800.00.3
Plaintiff husband filed the following exceptions to the divorce master's
report:
1. The Master's Report does not contain the determination
of Monthly Net Income... for either party. The Master's
Report states that Husband's tax return was unsigned and [the
Master's Report states that Husband's tax return] also "failed
to note approximately $10,000.00 that Husband had earned
which was not included on the tax return." Plaintiff is a
salaried employee and his salary is fully reflected on his W-2
form. About $10,000.00 of Plaintiff's salary is a pension
contribution which is not taxable and not reflected on the
[Federal Income Tax] return. To the extent that the Master's
Report implies that Plaintiff was less than forthcoming with his
Plaintiff's complaint was filed on August 24, 2000.
Plaintiff's Exceptions to Master's Report, filed August 29, 2003.
Master's Report, filed August 20, 2003, at 8-9, 13, 16.
income, it is simply not supported by the record; on the
contrary, every cent of Plaintiff's income was fully disclosed
and Plaintiff was available for cross-examination with regard
to any questions which were not self-evident in the
documentation of his income.
2. [Monthly Net Income] is not only necessary to know the
appropriateness of the alimony awarded, but also as a
benchmark with regard to any future modification of alimony.
3. Alimony is awarded on an indefinite basis and without
any benchmark to use in determining when the alimony
payment should be terminated.
4. The learned Master erred in ordering Plaintiff to pay
counsel fees and expenses to Defendant where (1) Plaintiff
paid Defendant alimony pendente lite thoughout the pendency
of the divorce proceedings, and is continuing to do so, (2)
Plaintiff incurred essentially the same counsel fees and
expenses as Defendant, and (3) Defendant has sufficient
property set aside to pay her counsel fees and expenses.
5. In the tenor of his report and in his award of counsel
fees and expenses, the learned Master criticizes, and appears to
penalize, Plaintiff for having an unreasonable position on
settlement. Even if Plaintiff took a hard line on settlement, this
is not a factor that can be considered in an award, whether for
counsel fees or expenses, or any other matter.
6. The learned Master erred in awarding the entire
household contents to Defendant without any evidence of the
value of same, again appearing to blame Plaintiff for the lack
of that evidence. This is especially inappropriate where
Defendant had exclusive possession of the marital residence,
and its contents, for years. At the hearing on March 27, 2003,
the Master directed the parties, and the parties agreed, to hold a
private sale of the household contents with the proceeds
distributed and a percentage assigned to each party. The
household contents contained many valuable articles, including
antiques, collectibles and custom-made pieces. Plaintiff
understood that the private sale would result in a division of the
household contents, and was taken by surprise that the Master
then awarded the entire household contents to Defendant
without knowing the value of what he was awarding to her.
2
7. The learned Master erred in closing the record on July
31, 2002, and denying Plaintiff the opportunity to present
evidence on issues that had been left open following the
hearing on March 27, 2003. This included income and
property values.
8. Following the hearing on March 27, 2003, the learned
Master advised the parties that he would hold the record open
"indefinitely" pending receipt of additional evidence on certain
issues. The Master later scheduled a hearing for July 31, 2003.
At the beginning of that hearing, the Master announced that the
record was closed, except for testimony on counsel fees and
expenses. Attempts by Plaintiff to introduce evidence on the
value of household contents and monthly net income were
denied.
9. The learned Master erred when awarding the marital
residence to Defendant without also ordering that Plaintiff be
removed for liability for the debt which was a mortgage against
the marital residence.4
Relief requested by Plaintiff in connection with the purported errors of the
divorce master was as follows: (1) a remand to the master for receipt of further
evidence on the value of household contents or an order directing a private sale of
the household contents and distribution of the proceeds in accordance with the
proposed 55/45 scheme; (2) a remand to the master for further evidence on the
amounts of the parties' net incomes; (3) a limitation on the duration of alimony to
five years or the inclusion of an express provision in the alimony supplemental
decree that a termination of Plaintiff husband's employment or his disability
would constitute an event of termination of the alimony obligation; (4) a denial of
Defendant wife's claim for attorney's fees and expenses; (5) a remand to the
master for a revised recommendation as to the amount of alimony, based on net
incomes and without reference to Plaintiff husband's behavior in the case or for a
fuller explanation of the manner in which the recommended alimony figure was
calculated; and (6) an order directing that Defendant wife effect Plaintiff
4 Plaintiff's Exceptions to Master's Report, filed August 29, 2003, at 1-2.
3
husband's removal as an obligor with respect to the mortgage debt on the marital
residence.5
Briefs have been submitted on behalf of the parties on the exceptions of
Plaintiff husband to the divorce master's report. For the reasons stated in this
opinion, the exceptions will be dismissed, and a decree in divorce and
supplemental decrees respecting equitable distribution, alimony, and attorney's
will be entered in accordance with the master's
fees and expenses
recommendations.
STATEMENT OF FACTS
In a divorce action, a divorce master's report and recommendations, while
entitled to real consideration, are advisory only and not binding on the court.
Morschhauser v. Morschhauser, 357 Pa. Super. 339, 349, 516 A.2d 10, 15 (1986).
However, on issues of credibility the master's report will be given full
consideration, because it is the master who had the opportunity to observe the
parties' demeanor. Margolis v. Margolis, 201 Pa. Super. 129, 192 A.2d 228
(1963).
The procedural history of this case has been well summarized in the divorce
master's report as follows:
A complaint in divorce was filed [by Plaintiff husband] on
August 24, 2000, raising grounds for divorce of irretrievable
breakdown of the marriage. No economic claims were raised
in the complaint. The parties signed affidavits of consent and
waivers of notice of intention to request entry of divorce decree
on December 5, 2002, which were filed with the Prothonotary
on December 6, 2002. Consequently, the divorce can proceed
under Section 3301(c) of the Domestic Relations Code.
A petition was filed [by Defendant wife] on September 5,
2000, raising economic claims of equitable distribution,
alimony, alimony pendente lite, and counsel fees and expenses.
The Master was appointed on August 6, 2001. Upon his
appointment, the Master sent to counsel certification
Plaintiff's Exceptions to Master's Report, filed August 29, 2003, at 2-3.
4
documents regarding discovery on August 13, 2001.
[Discovery was significantly delayed by the failure of Plaintiff
husband to respond to a request for production of documents,
and to timely comply with an order of court directing such
response.6] It was not until April 23, 2002, that wife's attorney
wrote the Master a letter indicating that all discovery motions
were resolved so that the Master could then proceed with a
directive for pretrial statements.
Pretrial statements were directed to be filed by May 6,
2002, followed by a pre-hearing conference on August 6, 2002.
Following the pre-hearing conference, there were subsequent
conferences with counsel and the parties leading to the
scheduling of a hearing on December 5, 2002, on the factor of
marital misconduct and the value of the marital residence. At
that hearing, the Master found that there was no evidence
presented by husband which rose to the level of marital
misconduct, and the Master dismissed the marital misconduct
allegations as irrelevant. The Master, at the hearing following
the testimony on the market value of the marital residence, set
the value at $251,000.00.
At the conclusion of the hearing on December 5, 2002,
another hearing was scheduled for March 27, 2003, to take
testimony on the remaining issues. Following the hearing on
March 27, 2003, the Master kept the record open to allow
counsel and the parties, pursuant to the Master's
recommendation and direction, to obtain an appraisal of a
vehicle, conduct a private auction of the personal property, and
provide income calculations. Nearly four months passed and
the Master was not advised at any time as to there having been
a consensus reached with regard to these outstanding matters.
Counsel for wife, because she apparently was not receiving any
communication and cooperation from husband and his counsel,
requested a hearing be scheduled on the issue of counsel fees
and expenses only. That hearing was held on July 31, 2003,
and the record was closed. The Master limited the testimony at
the hearing on July 31, 2003, to the issue of counsel fees and
costs, although husband and his counsel claimed that the
6 See Defendant's Motion To Compel, filed January 17, 2002; Defendant's Motion To Make Rule
Absolute, filed February 21, 2002; Defendant's Motion To Compel and Seek Sanctions, filed
April 5, 2002. Defendant had also been forced to file a Motion To Compel Discovery on
December 26, 2000.
5
Master had previously indicated in correspondence following
the March 27, 2003, hearing that the Master did not set any
deadlines establishing a time when the issues to be resolved
should be concluded. [T]he [said] remaining issues
continued to be unresolved four months later at the July 31,
2003, hearing.7
As noted by the divorce master, the initial hearing on December 5, 2002,
disposed of one or more preliminary issues and set the stage for an evidentiary
hearing on March 27, 2003, at which evidence was to be received on the economic
claims of Defendant wife. At the commencement of the hearing on March 27,
2003, several valuations were stipulated toa and the parties agreed that a period of
two weeks would be provided by the master following that date for receipt of
supplemental materials respecting the parties' net incomes.9 The master then
proceeded to receive evidence.
The evidence at the master's hearing~° on March 27, 2003, supports the
following recitation of facts pertinent to the issues raised in Plaintiff's exceptions:
Plaintiff is Kenneth B. Beam, 52; he resides with a female friend at 1400 Twigg
Avenue, Lebanon, Lebanon County, Pennsylvania.~ Defendant is Denise K.
Beam, 51; she resides at 301 Front Street, Boiling Springs, Cumberland County,
Pennsylvania, with one of the parties' children.~2
7 Master's Report, filed August 20, 2003, at 1-2.
8 N.T. 5-9, Divorce Master's Hearing, March 27, 2003.
9 N.T. 4-5, Divorce Master's Hearing, March 27, 2003.
l0 Although the divorce master conducted the hearing over the course of three days, the notes of
testimony of the first day (December 5, 2002) have not been transcribed and filed. This initial
proceeding, as noted supra in the text, dealt with Plaintiff's unsubstantiated contention that
marital misconduct had been committed by Defendant which disqualified her from an award of
alimony. N.T. 4, Divorce Master's Hearing, March 27, 2003.
~ N.T. 10, 18, Divorce Master's Hearing, March 27, 2003.
~: N.T. 49-50, Divorce Master's Hearing, March 27, 2003.
6
The parties were married on November 26, 1971.~3 Two children were
bom of the marriage: Chad Beecher Beam (October 7, 1977) and Brandon Beam
(September 19, 1981).TM The parties separated in June of 2000.~5
Plaintiff husband is a college graduate~6 with a background in computer
systems programming,~7 presently employed by IBM in "service delivery.''~8
When questioned at the master's hearing as to the amount of his salary in 2001, he
indicated on direct examination that it was $83,650.00.~9 With the addition of
$938.00 in dividends, he testified that his total income for 2001 was $84,588.00.2°
For the year 2002, he indicated on direct examination that his wages were
$85,771.00,2~ with dividend receipts expected to be comparable to those in 2001.22
Although this would suggest a gross income for Plaintiff husband of $86,709.00,
he acknowledged on cross-examination that his gross wages for 2002 were
$95,222.23,23 suggesting a gross income of $96,160.23. With regard to the
discrepancy in figures, the brief of Plaintiff's counsel on Defendant's exceptions
to the master's report indicates the following:
[H]usband does not have a pension plan provided by his
employer, but his employer does sponsor a 401(k) Plan to
24
which he contributes about $10,000.00 per year ....
~3 N.T.
~4 N.T.
~5 N.T.
16 N.T.
~7 N.T.
~8 N.T.
19 N.T.
20 N.T.
2~ N.T.
22 N.T.
23 N.T.
10, Divorce Master's Hearing, March 27, 2003.
13, Divorce Master's Hearing, March 27, 2003.
10, 50, Divorce Master's Hearing, March 27, 2003.
11-12, Divorce Master's Hearing, March 27, 2003.
13, Divorce Master's Hearing, March 27, 2003.
17, Divorce Master's Hearing, March 27, 2003.
18, Divorce Master's Hearing, March 27, 2003.
18-19, Divorce Master's Hearing, March 27, 2003.
19, Divorce Master's Hearing, March 27, 2003.
20, Divorce Master's Hearing, March 27, 2003.
40, Divorce Master's Hearing, March 27, 2003.
24 Plaintiff Husband's Brief in Support of His Exceptions to Master's Report, at 2.
7
The Court will accept this representation. Accordingly, Plaintiff Husband's
gross annual income appears to be $96,160.23,25 yielding a gross monthly income
figure of $8,013.35, and a net monthly income figure of $5,484.75.26
Defendant wife is not a college graduate.27 She has been employed as a
proofreader for the Pennsylvania Legislative Reference Bureau since 1989.28
Evidence in the record would support a finding that Plaintiff's gross annual
income is $35,504.88,29 resulting in a gross monthly income figure of $2,958.74,
and a net monthly income figure of $2,007.77.30 Evidence in the record would
also support a finding that Defendant's net monthly income is $2,163.34.3~
The major assets of the parties include (a) the marital residence, in which
Defendant resides,32 having a fair market value of $251,000.00 and in which the
parties have equity worth $154,176.00,33 (b) IBM stock with a stipulated value of
$109,481.00,34 (c) Plaintiff husband's IBM pension plan with a stipulated value of
$107,596.00,35 (d) Plaintiff husband's 401(k) retirement account with a stipulated
25 See Portugal v. Portugal, 798 A.2d 246, 252 (Pa. Super. Ct. 2002) (voluntary contributions to
retirement plan considered income for purposes of support calculation).
26 The net monthly figure results from an application of the standard tax computer program
utilized by the Cumberland County Domestic Relations Office for computation of net incomes.
See Cunningham v. Cunningham, 49 Cumberland L.J. 219, 224 n.32 (2000) (use by Cumberland
County of computer program to determine taxes applicable to a party's income). In this case,
utilizing Plaintiff's married-filing-separately status (see Plaintiff's Ex. 2A, Divorce Master's
Hearing, March 27, 2003), deductions from the gross monthly income figure of $8,013.35, as
projected by the program, are as follows: Fed. Inc. Tax $1,656.80; FICA $449.50; Medicare
$116.19; Local Inc. Tax $80.13; and State Inc. Tax $225.98.
27 N.T. 12, Divorce Master's Hearing, March 27, 2003.
28 N.T. 52, Divorce Master's Hearing, March 27, 2003.
29 Plaintiff's Pretrial Statement, Exhibit x (Support Master's Report).
30 Plaintiff's Pretrial Statement, Exhibit x (Support Master's Report).
3~ Defendant's Exhibit 2, Divorce Master's Hearing, March 27, 2003 (Order of Court).
32 This residence had been the family home of Defendant wife. N.T. 58, Divorce Master's
Hearing, March 27, 2003.
33 N.T. 5-6, Divorce Master's Hearing, March 27, 2003.
34 N.T. 8, Divorce Master's Hearing, March 27, 2003.
3s N.T. 8, Divorce Master's Hearing, March 27, 2003.
8
value of $99,468.00,36 and (e) Defendant wife's state pension plan with a
stipulated value of $54,094.00.37 (The stipulated values of the retirement accounts
were in accordance with an expert report for which Defendant wife paid
$600.00.38)
The standard of living of the parties can be described as having been
comfortable and middle class.39 As of the hearing, Defendant wife was receiving
spousal support from Plaintiff husband in the amount of $1,426.00 per month.4°
Much of the testimony at the hearing focused on the value of items which
were not particularly consequential. For instance, the parties argued over the
value of a 1989 Honda with more than a quarter of a million miles on it,4~ the
value of a 1963 Chevrolet Impala,42 and the value of a 1969 Chevrolet Camaro
which lacked an engine, seats, axles and windows.43 No evidence having been
presented as to the value of the parties' household goods, it was agreed that they
would be sold at auction.44
The master's hearing on March 27, 2003, concluded with no indication that
a further hearing would be held.45 The two weeks referred to at the beginning of
the hearing, within which the parties were to be permitted to supplement the
record, passed. During this period, Plaintiff's counsel submitted to the divorce
36 N.T. 8, Divorce Master's Hearing, March 27, 2003.
37 N.T. 9, Divorce Master's Hearing, March 27, 2003.
38 N.T. 66-68, Divorce Master's Hearing, March 27, 2003.
39 N.T. 57-58, 77, Divorce Master's Hearing, March 27, 2003.
40 N.T. 51, Divorce Master's Hearing, March 27, 2003; Defendant's Exhibit 2, Divorce Master's
Hearing, March 27, 2003.
41 N.T. 27-28, 33-36, 47-48
42 N.T. 29-30, 37-38.
43 N.T. 30-32, 36-37.
44 N.T. 21, Divorce Master's Hearing, July 31, 2003.
45 N.T. 81, Divorce Master's Hearing, March 27, 2003.
9
master an unsigned 2002 federal income tax form of Plaintiff.46 On April 16,
2003, the divorce master, in obvious frustration at the record which had been
developed, sent counsel the following letter:
I have reviewed the correspondence of both counsel
relating to the continuing effort to determine income and
valuation of some assets. I intend to keep the record open
indefinitely until certain matters are finally resolved There is
no point in imposing any further deadlines inasmuch as the
hearing date should have been the final deadline for all matters
to be resolved; however, we are still dealing with certain issues
which require resolution for proper evidence before I render
my recommendations.
First, let me point out that the unsigned 2002 proposed
income tax return from Mr. Beam in an effort to state his
income does not consider the wages on the 2002 W-2 form as
stated at $95,222.23. How [am I] to deal with the additional
$10,000.00 with respect to the income determination?
The 1963 Chevrolet Impala needs to be appraised. I intend
to award it to Mr. Beam and we need to have a value
established.
The parties are continuing to wrangle over the value and
distribution of the household contents. The distribution of
those assets and the valuation are important in my final report
inasmuch as I will put the total value of the assets as part of the
marital estate and then assign assets that each party is to
receive in the proposed distribution. Inasmuch as I do not
intend to find an equal distribution of the marital estate, it is
important that I know the value that each of the parties are
receiving with respect to the household tangible personal
property.
· . . Perhaps neither party can achieve the same standard of
living that they had during the marriage; however, certainly I
believe that the standard of living issue is important in my
consideration and do not find that this divorce is an "economic
disaster" for the parties as there are substantial assets and Mr.
Beam earns $95,000.00 annually and Mrs. Beam over
$40,000.00 annually. The disaster in this case is the inability
46 See Plaintiff's Exhibit 6, Divorce Master's Hearing, July 31, 2003.
10
of the parties, because, as [Plaintiff's counsel] believes, this is
an "emotionally charged divorce case(s)" to come to terms
with what ! consider to be some basic matters that could have
been resolved more expeditiously and less acrimoniously.
Mostly, all divorce cases are "emotionally charged".
Consequently, counsel can have all of the time they need to
finalize the remaining issues that need to be addressed before I
render my report and recommendations. In any event, I will
essentially be out of the office until April 28, 2003, leaving the
17th. ! had hoped to be able to complete the report before my
departure but obviously that is not going to happen so we may
as well take the time needed to make sure that all of the
evidence is properly presented and available to me for
consideration.47
Regrettably, the implication of immortality on the part of the divorce
master contained in the words "I intend to keep the record open indefinitely" and
"counsel can have all the time they need" is supported only in certain sections of
the Bhagavad Gita, which also do not appear in the record. A third of a year later,
in spite of the best efforts of Defendant wife and her counsel,48 the master had
been placed in little better position with respect to the record than he had been in
at the conclusion of the hearing on March 27, 2003.49 NO auction of the household
goods had been held or arranged. S°
With a view toward concluding the case on the basis of the record which
had been made, a final master's hearing was scheduled for July 31, 2003, limited
to the issue of attorney's fees and expenses incurred by Defendant following the
prior evidentiary hearing.5~ At that hearing, Defendant wife substantiated her
position that responsibility for the lack of a more developed posture of the case lay
47 Plaintiff's Exhibit 6, Divorce Master's Hearing, July 31, 2003 (emphasis added).
48 See generally N.T. 4-46, Divorce Master's Hearing, July 31, 2003.
49 N.T. 10, Divorce Master's Hearing, July 31, 2003.
50 N.T. 10, Divorce Master's Hearing, July 31, 2003.
5~ Order and Notice Setting Hearing, July 3, 2003; N.T. 4, Divorce Master's Hearing, July 31,
2003.
11
with Plaintiff husband,52 one of whose e-mails to Defendant during this period
included the following statement: "I will continue this until we have no money left
to split or we decide to work this out.''53
By the time of the July 31, 2003, hearing, attorney's fees charged to
Defendant wife by her present attorney~4 had totaled almost $8,000.00.~ Of this
amount, $1,409.00 related to defense of a wholly meritless~6 marital misconduct
allegation by Plaintiff57 and $359.00 related to pursuit of discovery by means
necessitated, in the court's view, by Plaintiff's failure to comply with rules and
orders.~8
Although no objection was initially made by Plaintiff's counsel to the
limitation of evidence at the July 31, 2003, hearing to the issue of counsel fees,59
as the hearing proceeded to a conclusion he introduced, and secured admission of,
the letter of the divorce master quoted above, and sought to introduce Plaintiff
husband's 2002 tax return as filed, on the subject of his income.® In declining to
admit the latter item into the record, the divorce master pointed out that the initial
period during which the record was to have been supplemented on this subject had
passed, that a sufficient basis for determining Plaintiff husband's wages was
already of record by way of his 2002 W-2 form, that four months had passed from
5: See generally N.T. 4-46, Divorce Master's Hearing, July 31, 2003.
53 Defendant's Exhibit 6, Divorce Master's Hearing, July 31, 2003.
54 Defendant had been initially represented in these proceedings by another attorney. N.T. 65,
Divorce Master's Hearing, March 27, 2003; N.T. 11, Divorce Master's Hearing, July 31, 2003.
55 Defendant's Exhibit 10, Divorce Master's Hearing, July 31, 2003; N.T. 11.
56 See N.T. 62, Divorce Master's Hearing, March 27, 2003.
57 N.T. 65, Divorce Master's Hearing, March 27, 2003.
58 N.T. 60-61, 65, 67-69, Divorce Master's Hearing, March 27, 2003; Defendant's Exhibit 3,
Divorce Master's Hearing, March 27, 2003.
59 The notice of hearing as issued advised of this limitation, as did the divorce master at the
commencement of the hearing. See Order and Notice Setting Hearing, June 3, 2003; N.T. 4,
Divorce Master's Hearing, July 31, 2003.
60 N.T. 31-35, Divorce Master's Hearing, July 31, 2003.
12
the prior hearing, and that the present hearing was noticed as being limited to the
6~
issue of counsel fees and expenses.
With respect to his letter suggesting an indefinite period for the record to be
completed, the master conceded that
I was not articulate enough in the process of trying to bring
this [case] to a conclusion, but I certainly did not anticipate
that this would take four months, and also I am confronted
here today with testimony that there were efforts made to
bring this to resolution and this was not accomplished. So we
have a situation where the one side apparently is attempting
to call this to a termination and the other side is not
responding, I think there has to be a presumed date at which
we say, well, there is not going to be anymore time.
Otherwise, this could go on indefinitely. Unfortunately I used
that kind of phraseology but it certainly was not anticipated
by me that this case could hang open here for three, four, five
years until somebody decided to do something on the other
side.62
In his report, the divorce master recommended a 55/45 distribution of the
valued marital estate ($576,063.64)63 and proceeds of a sale of the Chevrolet
Camaro automobile shell,64 with the share to be received by Defendant wife to
include the marital residence (subject to encumbrances securing debts, for which
Defendant wife would be responsible),65 a distribution of certain household items,
including a deep freezer and John Deere tractor, to Plaintiff husband and retention
of the balance of the items by Defendant wife,66 alimony in favor of Defendant
wife in the amount of $900.00 per month, subject to modification and termination
61 N.T. 31-35, Divorce Master's Hearing, July 31, 2003.
6: N.T. 33, Divorce Master's Hearing, July 31, 2003.
63 Divorce Master's Report, filed August 20, 2003, at 8-9.
64 Divorce Master's Report, filed August 20, 2003, at 10.
65 Divorce Master's Report, filed August 20, 2003, at 9.
66 Divorce Master's Report, filed August 20, 2003, at 10; Defendant's Exhibit 6, Divorce
Master's Hearing.
13
in accordance with the Domestic Relations Cede,67 and an award to Defendant
wife of attorney's fees in the amount of $1,500.00 and expenses in the amount of
$300.00 (representing half of the retirement fund appraiser's fee).68 The master
did not condition the recommended scheme upon the ability of Defendant wife to
secure a release of Plaintiff husband by creditors secured by the marital residence,
but did provide for Defendant's indemnification of Plaintiff for any loss he might
incur in that respect.
The master predicated his report upon net monthly incomes of $5,387.00
and $2,266.00 for Plaintiff husband and Defendant wife respectively. The record,
as indicated above, would have supported higher figures, less favorable to Plaintiff
husband.
In his report, the divorce master prefaced his recommendations with a
thorough analysis of the circumstances of the parties, including an explicit review
of the factors set forth in Section 3502(a) of the Domestic Relations Cede69 and
Section 3701(b) of the Domestic Relations Cede.7° The Court is in agreement
with the findings of the master, as well as the rationale for the recommendations as
expressed in the report, which are adopted herein.
DISCUSSION
The exceptions of Plaintiff husband to the divorce master's report may be
classified as involving the determination of income, the propriety of alimony of an
indefinite duration, the propriety of an award of counsel fees and expenses, the
disposition of household goods, and the perpetuation of liability of Plaintiff
husband on debts secured by liens on the marital home. These matters will be
discussed seriatim.
67 Divorce Master's Report, filed August 20, 2003, at 13.
68 Divorce Master's Report, filed August 20, 2003, at 16.
69 Act of December 19, 1990, P.L. 1240, §2, 23 Pa. C.S. §3502(a) (factors to be considered in
scheme for equitable distribution).
70 Act of December 19, 1990, P.L. 1240, §2, as amended, 23 Pa. C.S. §3701(b) (factors to be
considered with respect to alimony).
14
Determination of income. As indicated by the recitation of facts above, the
record does not, in the court's view, support Plaintiff's position that the divorce
master failed to determine the net incomes of the parties.TM To the extent that
Plaintiff's position is that the master's conclusion as to Plaintiff's income was
inflated because the calculation included voluntary contributions to a retirement
plan, the exception is not consistent with the present state of the law. See Portugal
v. Portugal, 798 A.2d 246, 252 (Pa. Super. Ct. 2002) (voluntary contributions to
retirement plan considered income for purposes of support calculation).
Finally, to the extent that Plaintiff's position is that the divorce master
failed to afford a sufficient opportunity for him to make a record upon which a
determination of income could be based, two factors tend to weaken the effect of
this argument. First, as the master pointed out, the record contains a copy of
Plaintiff's most recent W-2 form; Plaintiff fails to suggest in what way his wages
would be shown to be different from those reflected on the form by the submission
of supplemental evidence, and in this sense the argument lacks any element of
prejudice necessary to entitlement to relief.
Second, Plaintiff did not, within the time initially provided by the master,
supplement the record with further evidence of a reliable nature on the subject of
his salary, nor did he cooperate to complete the record thereafter. Under these
circumstances, the court does not believe that it is necessary to extend this case,
which was commenced in 2000, into 2004 by remanding it to the master with a
direction to the master that he reopen the record, conduct a fourth hearing, and file
7~ In this regard, Plaintiff concedes in his brief on the exceptions that "we can surmise from the
record and from the Master's report what was likely the figures used..., [but] husband believes
this is something that should be clear." Plaintiff Husband's Brief in Support of His Exceptions to
Master's Report, at 8. Although the Court is unable to agree that the figures used were not
explicit in the report, where a determination may be made on the basis of necessary implication a
lack of explicitness will not be deemed a material defect. See, e.g., Peerless Publications Inc. v.
County of Montgomery, 656 A.2d 547, 552 (Pa. Commw. Ct. 1995) (that is certain which can be
made certain).
15
a new master's report, solely to facilitate the submission of further evidence on the
subject of income by Plaintiff.
Award of alimony of indefinite duration. "Where a divorce decree has
been entered, the court may allow alimony, as it deems reasonable, to either
party.., if it finds that alimony is necessary." Act of December 19, 1990, P.L.
1240, 32, as amended, 23 Pa. C.S. §3701(a). "Alimony is based upon reasonable
needs in accordance with the lifestyle and standard of living established by the
parties during the marriage, as well as the payor's ability to pay." Twilla v. Twilla,
445 Pa. Super. 86, 90, 664 A.2d 1020, 1022 (1995).
Factors relevant to the nature, amount, duration and manner of payment of
alimony include those statutorily prescribed in Section 3701(b) of the Domestic
Relations Code. Id; Act of December 19, 1990, P.L. 1240, 32, as amended, 23
Pa. C.S. §3701(b). An award of alimony may be modified, suspended, terminated
or reinstituted, or replaced by a new order, upon a change of circumstances of
either party of a substantial and continuing nature. Id §3701(e).
"The court in ordering alimony shall determine the duration of the order,
which may be for a definite or an indefinite period of time which is reasonable
under the circumstances." Id §3701(c). Where a court expressly recognizes the
prospect of a modification or termination of alimony in the event of changed
circumstances, the indefinite duration of an award of alimony at its inception is not
uncommon. See, e.g., Nemoto v. Nemoto, 423 Pa. Super. 269, 620 A.2d 1216
(1993).
In the present case, where circumstances include a marriage of almost 30
years during which the parties established a comfortable standard of living, a
substantial disparity in the parties' incomes and earning potentials, a modest
income on the part of Defendant wife, and her assumption of a substantial debt
obligation in connection with her residence, the award of alimony to her in the
amount of $900.00 per month seems, to the court, entirely appropriate. Nor does it
appear to be unreasonable to decline to assign a termination date to such an award
16
in the absence of an ability to predict when the circumstances of the parties will
materially change, where the prospect of a termination or other modification upon
a change of circumstances is expressly recognized.
Counsel fees and expenses. With respect to counsel fees and expenses, the
Domestic Relations Code expressly authorizes an award reimbursing, in whole or
in part, a party for such expenditures in an appropriate case. "In proper cases,
upon petition, the court may allow a spouse.., reasonable counsel fees and
expenses." Act of December 19, 1990, P.L. 1240, §2, as amended 23 Pa. C.S.
§3702. In this regard, "counsel fees are not awarded to either spouse
automatically. Actual need must be shown in order to justify an award. Counsel
fees are appropriate when necessary to put the parties on a par in defending their
rights or in allowing a dependent spouse to maintain or defend an action for
divorce." Johnson v. Johnson, 365 Pa. Super. 409, 415, 529 A.2d 1123, 1126
(1987).
In addition, a more general statutory provision in Pennsylvania provides as
follows:
The following participants shall be entitled to a reasonable
counsel fee as part of the taxable costs of the matter:... [a]ny
participant who is awarded counsel fees as a sanction against
another participant for dilatory, obdurate or vexatious conduct
during the pendency of a matter... [and a]ny participant who
is awarded counsel fees because the conduct of another party in
commencing the matter or otherwise was arbitrary, vexatious
or in bad faith ....
Act of July 9, 1976, P.L. 586, §2, 42 Pa. C.S. §2503(7), (9).
Thus, in Isralsky v. Isralsky, 824 A.2d 1178 (Pa. Super. Ct. 2003), the
Pennsylvania Superior Court upheld a lower court's award of attorney's fees to a
spouse where credible evidence had been presented that the opposing party had
threatened to "run her [the opposing spouse] out of money" and the lower court
believed that an award of counsel fees was necessary in order to place the parties
on a par and effectuate economic justice. Id at 1192-93.
17
In the present case, the assessment of one half of the $600.00 expense for
an expert's report that served as the basis for a stipulation on retirement plan
values seems fair and reasonable to the court. In addition, upon consideration of
Plaintiff's own e-mailed threat as recounted above, the disparity of the parties'
incomes, and Plaintiff' s pursuit of a meritless allegation of marital misconduct and
failure to comply with discovery obligations, the assessment of a modest
attorney's fee amounting to less than Defendant's bills in connection therewith
and to a fraction of her overall legal expenses, seems equally appropriate.
Disposition of household goods. "At some point litigation must end."
Commonwealth v. Peterkin, 554 Pa. 547, 557, 722 A.2d 638, 643 (1998). It is, as
a general rule, the responsibility of the parties to generate the record upon which a
case will be decided. See, e.g., Commonwealth v. Gi//en, 798 A.2d 225 (Pa.
Super. Ct. 2002). In this regard, the master concluded that the imperfect state of
the record in the present case was primarily attributable to Plaintiff, and his
conclusion finds support in the history of the proceedings.
Under these circumstances, and in view of the age of the litigation, the
court finds itself in agreement with the master's decision to proceed on the basis of
the record which had been made to bring a case, which as of this writing is well
into its fourth year, to a practical conclusion. The vast bulk of the marital estate
was exclusive of the household items, and under the scheme proposed by the
master each party will receive some of the household items. Plaintiff's share of
these will include at least two major items.TM
Accordingly, Plaintiff's position on the matter of household goods is
viewed as less than compelling and the court will decline to further complicate and
delay the process herein by sustaining Plaintiff's exceptions to the divorce
master's report as they relate to the disposition of household goods.
7: In so finding, the court intends no reflection upon either counsel in the case, neither of whom
was the client's initial counsel and both of whom have zealously pursued the interests of their
clients with their accustomed competence and professionalism.
18
Liability of PlaintifJ~ husband on debts secured by marital residence.
Whether a party who receives an item of property in equitable distribution which
is encumbered on a joint debt should be required to effect a release of the other
party on the debt, by means of refinancing or otherwise, is dependent upon the
circumstances of the case. It is not uncommon that a scheme of distribution does
not depend upon the effectuation of such a release. See, e.g., Ruth v. Ruth, 316 Pa.
Super. 282, 462 A.2d 1351 (1983).
While a release is obviously desirable from the point of view of the party
who does not receive the property, the record in the present case does not
demonstrate that a lending institution would be willing to accept the risk inherent
in a substantial loan to a person with Defendant's income from employment as a
proofreader. In addition, in view of the market value of the residence in question,
the practical risk to Plaintiff that he will actually sustain any loss from remaining
as an obligor on the debts secured by the premises is almost nonexistent. Because
the feasibility of requiring Defendant to secure a release of Plaintiff is uncertain,
and the risk to Plaintiff marginal, the court is in agreement with the absence of
such a requirement in the scheme of distribution proposed by the divorce master.
For all of the foregoing reasons, Plaintiff's exceptions to the report of the
divorce master will be dismissed, a divorce decree will be issued, and
supplemental decrees regarding economic claims will be entered in accordance
with the recommendations of the master.
ORDER OF COURT
AND NOW, this 30th day of December, 2003, after careful consideration of
Plaintiff's Exceptions to Master's Report, and for the reasons stated in the
accompanying Opinion, the exceptions are dismissed.
OF EVEN DATE herewith, a divorce decree and supplemental decrees
respecting equitable distribution, alimony, and counsel fees and expenses are
being entered in accordance with this Order and the accompanying Opinion.
19
BY THE COURT,
E. Robert Elicker, II, Esq.
Cumberland County Divorce Master
Thomas J. Williams, Esq.
Attorney for Plaintiff
Debra Denison Cantor, Esq.
Attorney for Defendant
s/ J. Wesley Oler, Jr.
J. Wesley Oler, Jr., J.
20
21
KENNETH B. BEAM,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
Vo
CIVIL ACTION - LAW
DENISE K. BEAM,
Defendant
NO. 00-5837 CIVIL TERM
IN RE: PLAINTIFF'S EXCEPTIONS TO DIVORCE MASTER'S REPORT
BEFORE OLER, J.
ORDER OF COURT
AND NOW, this 30th day of December, 2003, after careful consideration of
Plaintiff's Exceptions to Master's Report, and for the reasons stated in the
accompanying Opinion, the exceptions are dismissed.
OF EVEN DATE herewith, a divorce decree and supplemental decrees
respecting equitable distribution, alimony, and counsel fees and expenses are
being entered in accordance with this Order and the accompanying Opinion.
BY THE COURT,
E. Robert Elicker, II, Esq.
Cumberland County Divorce Master
Thomas J. Williams, Esq.
Attorney for Plaintiff
Debra Denison Cantor, Esq.
Attorney for Defendant
J. Wesley Oler, Jr., J.