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HomeMy WebLinkAbout2001-945 CivilH. CYRIL B1NGHAM, JR. V. CHRISTINA J. BINGHAM IN THE COURT OF COMMON PLEAS OF BEDFORD COUNTY, PENNSYLVANIA NO. 2001 CIVIL 945 IN RE: DIVORCE, EQUITABLE DISTRIBUTION ALIMONY AND COUNSEL FEES BEFORE GUIDO, J. OPINION AND ORDER OF COURT Currently before us is the divorce action between H. Cyril Bingham, Jr. (hereinafter "husband") and Christina J. Bingham (hereinafter "wife"). We have been asked to sever the bonds of matrimony and decide several economic issues including the equitable distribution of marital property, as well as wife's entitlement to alimony and counsel fees. We have conducted an evidentiary hearing and the parties have submitted briefs in support of their respective positions. This matter is now ready for disposition. FINDINGS OF FACT 1.) The parties were married on November 12, 1977. It was the first marriage for husband and second for wife. 2.) The parties separated on April 26, 2001. They have lived separate and apart continuously since that date. 3.)Their marriage is irretrievably broken. 4.) Two children, a son and a daughter, were born of the marriage. Their adult son died on December 10, 2000. Their daughter has reached the age of majority. NO. 2001 CIVIL 945 5.) 6.) 7.) 9.) 10.) 11.) 12.) Prior to his death their son was the owner of several life insurance policies. Two of those policies are at issue in these proceedings because husband had been named as the sole beneficiary on them. Prior to separation, husband received a death benefit of $50,000 on one policy and $19,000 on the other. Those proceeds were kept in a separate account titled in husband's name alone. Husband was born on July 20, 1951. Husband has been employed by the Pennsylvania Judiciary as a District Justice since the first Monday in January 1986. He was recently elected to a new six year term commencing the first Monday in January 2004. Husband's current salary is $61,472. By statute he receives an annual cost of living increase effective the first Monday in January. His net monthly income is approximately $3,500.~ Wife was born on July 4, 1950. Wife has a bachelor's degree and was employed as a case manager and director of social services at Bedford Hospital from 1975 through December 1999. Wife lost her job as the result of a merger and without any fault on her part. She was earning approximately $30,000 at the time she was terminated. ~ We used his net pay of $2,835 and added back credit umon and deferred compensation deductions totaling $500 plus $155 representing a refund of his taxes. See Joint Exhibits 14(a) and 17. NO. 2001 CIVIL 945 18.) 19.) 20.) 13.) In the support action at No. 23 - Support 2002 we previously determined that wife had an earning capacity of $1600 per month or $19,200 per year. This was a conservative figure and should be increased by 25%. 14.) Husband has been paying wife the sum of $750 per month as spousal support since January 2, 2002 in accordance with an order entered in the aforesaid support action. 15.) Although her health is good, wife has not had any substantial employment since she lost her job in 1999. 16.) Wife had started a business shortly before the hearing in this matter. While she had made very little income to that point, she was enthusiastic about her prospects for future income. 17.) Wife has reasonable current expenses of $1700. However, in order to maintain some semblance of the standard of living she had enjoyed prior to separation, monthly expenses of $2400 would be more appropriate. Husband has paid $1,618 to obtain appraisals of the marital property. Wife has incurred reasonable attorney fees in the amount of $9,800.2 The parties agreed to the following marital assets and values.3 PSECU Account (ID 50) PSECU Account (money handler) Altoona 1st Savings Altoona 1st Checking Husband's deferred compensation Merrill Lynch IRA FNB Stock Proceeds Bedford Memorial Account Tax Deferred Annuity Ameritrade Account 2 She had previously paid $2500 from a partial distribution of the marital estate. 3 We have deleted the "cents" in all of our values. $1162 222 6070 617 44,053 21,644 6,536 45,535 55,117 4,939 NO. 2001 CIVIL 945 21.) 22.) 23 .) 24.) Ameritrade Account 317 Marital Real Estate 112,500 Cemetery Plot 2,500 TOTAL $301,212 We make the following findings with regard to the remaining marital assets and values: Husband's PSERS Pension $208,6134 Lumina Van Wife' s Jewelry Fostoria Collection Fenton Glass Collection Beanie Babies Household Personal Property Personal Property in Husband's Possession TOTAL 2,275 9,015 6,000 28,125 No Value5 28,8996 3,428 $286,355 The parties incurred the following marital debt which must be divided: Discover Card 4,6027 First USA Visa 2,260 Home Equity Line of Credit 25,003 TOTAL $31,865 The total net value of marital assets available for distribution is $555,702. Husband paid substantial sums (almost $12,000) toward the upkeep of the marital home after separation but prior to the entry of the support order which became effective on January 2, 2002. Those amounts were paid by 4 The parties have submitted a post hearing stipulation agreeing to this value. s We were not comfortable accepting either parties' evaluation of the Beanie Baby collection. We will deal with this asset separately. 6 We accepted the appraisal of Stanley Claycomb valuing the household items at $35,263. See Joint Exhibit 9. However, we deducted $1,445 for pre-marital items, $1241 for gifts to defendant, $1485 for property received by defendant through inheritance, $583 for items bought post separation and $1610 for items belonging to the parties' daughter. See defendant's Exhibit 10. 7 We reject husband's claim for interest paid on this account since the date of separation. Despite having the ability to pay it in full, he chose to make only the minimum monthly payments. NO. 2001 CIVIL 945 2.) 3.) 4.) 5.) husband after he left the marital home. They were voluntary payments for which no credit was expected and for which no credit will be given. CONCLUSIONS OF LAW Grounds for divorce under Section 3301(d) of the Divorce Code have been established. The proceeds received from the insurance policies on their son's life are 8 not marital property. The marital estate should be distributed 55% to wife and 45 % to husband. Wife is not entitled to receive alimony. Each party should be responsible for the payment of his or her own counsel fees and costs. DISCUSSION Divorce The parties have lived separate and apart for more than two consecutive years. The marriage is irretrievably broken. A decree in divorce will be entered pursuant to Section 3301(d) of the Divorce Code.9 Equitable Distribution Section 3502 of the Divorce Code sets forth numerous factors to be considered in determining the appropriate division of marital property, l0 We will discuss the factors which are relevant to the case before us. 8 Neither counsel has directed our attention to a case directly on point. However, we are satisfied that the proceeds are excluded from the definition of marital property because they were acquired "by gift... bequest, devise or descent." 23 Pa. C.S.A. § 3501(a) (3). 9 23 Pa.C.S.A. 3301(d). l0 23 Pa.C.S.A. § 3502(a). NO. 2001 CIVIL 945 The parties were married for more than twenty three years. Both parties are of relatively equal age (early fifties) and in good health. Husband is in a stable position as a District Justice earning more than $60,000 per year. He will receive annual cost of living increases. Wife has not held a full time job since more than a year prior to separation. She has a bachelor's degree along with substantial experience in the field of health care services. We are satisfied that she could earn sufficient sums to support herself if she chose to do so.~ Neither party has any significant assets outside of the marital estate.~2 Nor does either party have any significant liabilities. With his stable employment at a salary of over $60,000, husband is in a much greater position to acquire capital assets and income in the future. Further, he has excellent medical benefits provided to him without cost. After the entry of the divorce decree, wife will be required to expend funds to secure her own coverage. The parties contributed equally to the acquisition of the marital estate. Husband and wife both worked full time for most of the marriage. While husband had greater earnings, wife made other significant contributions, including the acquisition of the valuable antiques and collectibles as well as performing the duties of a homemaker. The standard of living established by the parties during the marriage was comfortable and middle class. Based upon his employment, husband will be able to enjoy a similar standard of living into the future. If and when wife chooses to reenter the labor market, she will also be able to maintain a similar standard of living. ~ Even so, her earning potential is only one third to one half of husband's. ~: While husband received a substantial sum in life insurance on the death of his son, most of those proceeds had been spent prior to the hearing in this matter. The expenditures included, inter alia, some funeral expenses for the son, college expenses for the daughter as well as amounts to keep the marital home running after separation and prior to the entry of a support order. NO. 2001 CIVIL 945 Based upon the above, we are satisfied that the net marital estate should be distributed 55% to wife and 45% to husband. The net value of the marital estate is $555,702~3 and will be divided $305,636 to wife and $250,066 to husband. The following assets and liabilities shall be retained by or distributed to wife: Assets Bedford Memorial Account Tax deferred annuity Marital Home (208 Windwood Circle) Ameritrade Account Ameritrade Account Proceeds of FNB Stock Lumina Van Jewelry in her possession Fostoria Collection Fenton Glass Collection Household Personal Property & Antiques $45,535 55,117 112,500 4,939 317 4,585 2,275 9,015 6,000 28,125 26,909TM Liabilities Home Equity Line of Credit First USA Visa <25,003> <2260> Net Assets to Wife $268,054 The following assets and liabilities shall be retained by or distributed to husband: Assets PSERS Pension Personal Property in his possession Personal Property per footnote 8 supra PSECU (ID 50) PSECU (money handler's) Altoona First Savings Altoona First Checking PSERS Deferred Compensation Merril Lynch IRA $208,613 3,428 1,990 1,162 222 6,070 617 44,053 21,644 ~3 Gross assets of $603,151 less marital debt of $31,865. ~4 This includes all of the items currently in the home except the Duck's Unlimited Prints, Barrister Bookcase, Howard Miller Clock (living room) and the Bedford Lithograph having a total value of $1990. Those items shall be distributed to husband. NO. 2001 CIVIL 945 FNB Stock Proceeds 1,951 Cemetery Plot 2,500 Liabilities Discover Card <4602> Net Assets to husband $287,648 The above distribution would require husband to pay wife $37,582. to achieve the desired division of the marital estate. Husband will be given a credit of $808 for lA of the cost of the appraisal fees he advanced in this matter, resulting in a net payment to wife of $36,774.~5 We will direct husband to pay $10,774 within thirty (30) days and the balance in monthly payments of not less than $598.77 to be applied first to the payment of interest on the unpaid balance at the rate of 5% per annum and the balance to the reduction of principal. ~6 In addition, the Beanie Baby collection shall be sold at auction with the net proceeds divided 55% to wife and 45% to husband. ~7 Alimony Many of the factors discussed above are also relevant to our decision with regard to alimony. Of the factors that do not overlap, we find the factor in Section 3701(b) (16) to be controlling. ~8 In other words, we are satisfied that the funds received by wife pursuant to the equitable distribution award coupled with the earning capacity we have ~s Husband did advance costs in the amount of $1618 to secure various appraisals of the marital estate. Since these appraisals were for the benefit of both parties, fairness dictates that they share those costs. 16 At this rate the monthly payments would continue for 48 months. Husband could, of course, pay the balance due sooner if he desired to do so. ~7 Since we were not comfortable with the valuation placed upon the Beanie Baby collection by either party, this is the most equitable way to divide this particular marital asset. ~8 23 Pa. C.S.A. § 3701(b) (16). NO. 2001 CIVIL 945 attributed to her, are sufficient to enable her to meet her reasonable needs. In January of 2002 we determined that wife had an earning capacity of $1600 per month. This was a conservative figure based upon the recent trauma she had experienced including the death of her son, the break up of her marriage, and the unexpected requirement that she be forced to re-enter the work force. We are satisfied that, with her education and experience, wife could easily earn $25,000 per year if she was serious about finding employment. This would be sufficient to meet her reasonable needs. "Alimony following a divorce is a secondary remedy and is available only where economic justice and the reasonable needs of the parties cannot be achieved by way of an equitable distribution award and development of an appropriate employment skill." Twilla v. Twilla, 445 Pa. Super. 86, 90, 664 A.2d 1020, 1022 (1995) (emphasis in original) (citations omitted). Counsel Fees and Costs Wife's request for counsel fees will be denied. Husband's payment of support throughout the pendency of these proceedings as well as the award of marital property have provided wife with sufficient resources to pay her own counsel fees. Stated another way, we are satisfied that economic justice would best be accomplished by each party paying their own counsel. For the reasons set forth above, we will enter the order that follows. NO. 2001 CIVIL 945 ORDER OF COURT AND NOW, this day of AUGUST, 2004, it is hereby ordered and directed as follows: 1 .) H. Cyril Bingham, Jr., Plaintiff and Christina J. Bingham are divorced from the bonds of matrimony. 2.) The following items of marital property and marital debt shall be distributed to husband and shall hereinafter be his sole and separate property (or responsibility): Assets PSERS Pension Personal Property in his possession Personal Property per footnote supra PSECU (ID 50) PSECU (money handler's) Altoona First Savings Altoona First Checking PSERS Deferred Compensation Merril Lynch IRA FNB Stock Proceeds Cemetery Plot $208,613 3,428 1,990 1,162 222 6,070 617 44,053 21,644 1,951 2,500 Liabilities Discover Card <4602> 3.) The following items of marital property and marital debt shall be distributed to wife and shall hereinafter be her sole and separate property (or responsibility): Assets Bedford Memorial Account Tax deferred annuity Marital Home (208 Windwood Circle) Ameritrade Account Ameritrade Account Proceeds of FNB Stock Lumina Van $45,535 55,117 112,500 4,939 317 4,585 2,275 10 NO. 2001 CIVIL 945 Liabilities Jewelry in her possession Fostoria Collection Fenton Glass Collection Household Personal Property & Antiques Home Equity Line of Credit First USA Visa 9,015 6,000 28,125 26,909 <25,003> <2260> 4.) Husband shall pay to wife the sum of $36,774 as follows: a. $10,774 within 30 days. b. The balance of $26,000 in monthly payments of not less than $598.77 to be applied first to the payment of interest on the unpaid balance at the rate of 5% per annum and the balance to the reduction of principal. Said payments to commence thirty (30) days after this order becomes final. 5.) The Beanie Baby collection shall be sold at auction and the net proceeds distributed 55% to wife and 45% to husband. 6.) Wife's claims for alimony, counsel fees and expenses are DENIED. By the Court, /s/Edward E. Guido Edward E. Guido, J. Darlee E. Sill, Esquire 314 Wayne Street Hollidaysburg, Pa. 16648 Jeffrey A. Muriceak, Esquire 415 Wayne Street P.O. Box 487 Hollidaysburg, Pa. 16648 11 NO. 2001 CIVIL 945 :sld 12