Landlord-Tenant Basics

A lease is the typical agreement outlining the arrangement to occupy property between the tenant, who will become the occupant, and the landlord, who is the legal owner of the property. Leases between landlords and tenants can be oral or written if the lease is for a period of less than three years, although written is always preferable. Lease agreements must be in writing for terms greater than three years. A tenant should make a careful review of the property prior to signing a lease. For example, a tenant should check to see if all appliances are in working order, if there are any plumbing issues, if the electric is properly wired and all light fixtures and outlets are in working order, whether the walls or ceilings have any cracks, holes or other damage, if the floors, railing and bathroom fixtures are in good repair, whether there are any rodent or insect problems, and whether the windows and doors are functional and secure. A tenant should be sure to note any existing damages to the landlord prior to signing a lease as the tenant is obligated to leave the property in the same condition at the termination of the lease.

The term of a lease will automatically terminate as stated in the lease but can terminate earlier in certain circumstances. A landlord can evict a tenant if they are behind on rent or break any other clause of the lease. A landlord must provide a notice to quit to be personally delivered to the tenant, posted to their residence, or left in a common area. The notice must allow a time frame to rectify the breach prior to eviction. If the tenant does not come into compliance, the landlord must then follow the steps to file a complaint in district court for eviction.

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Retirement Plan Distributions in Divorce

Retirement plans are often one of the significant assets up for distribution in the course of a divorce. Careful attention should be given to the type of retirement plan at issue to avoid tax penalties and/or early withdrawal penalties to the extent possible. First, retirement plans must be distinguished between qualified plans and non-qualified plans. Qualified plans include defined contribution plans such as 401Ks as well as defined benefit plans such as pensions. A Qualified Domestic Relations Order (QDRO) will be necessary to distribute a qualified plan. Non-qualified plans include individual retirement accounts or IRAs. A QDRO is not needed to distribute these plans.

Both qualified and non-qualified plans will be taxable as distributed. The QDRO effectuates a tax-free rollover of funds to the spouse being awarded a share of the retirement plan in divorce but the spouse will be taxed on it when they withdraw it. Distributions outside of a QDRO may also be subject to an early withdrawal fee. Typically, a 10% early withdrawal penalty applies to distributions before the plan participant is 59 ½ years old. There are a few ways to avoid the early withdrawal penalty including a loan from the retirement plan, disability of the plan participant, and scheduled equal payments. Additional exceptions for IRA plans include higher education expenses and for first-time home buyers.

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Improper Custody Relocation

Pennsylvania’s custody relocation statute, 23 PA C.S. 5337, requires the party seeking relocation to get court approval or the other parent’s permission prior to relocation. A relocation is defined as any move that would “significantly impair the ability of the nonrelocating party to exercise custodial rights.” Procedurally, the party intending to relocate should give at least 60 days notice or notice as soon as possible after they have knowledge of the relocation. A full hearing on the relocation should be held prior to the move if the relocation is contested. In addition to addressing the 16 factors to consider in any custody award, the moving party must also address the 10 relocation factors. The moving party has the burden of proof to show relocation will serve the best interests of the child(ren) and that there is no improper motive in seeking to move.

Failure to abide by the procedures listed in the statute has consequences. Specifically Section 5337(j) discusses the ramifications for failure to provide adequate notice and follow the appropriate channels. The court may consider the lack of notice as a factor when making a final determination on the relocation and whether custody rights should be modified. The court can also view the lack of notice as a basis for ordering the return of the child to the jurisdiction. The court may order the party who improperly relocated to pay attorneys fees and expenses on behalf of the party who must initiate litigation to indicate their opposition to the relocation. The court can also treat it as a matter of contempt and impose sanctions against the moving party. Finally, 5337(l) explains the court is not permitted to confer any presumption in favor of the relocation where it occurs before the court holds a final hearing.

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Increase/Decrease in Asset Value

Property acquired prior to the marriage or in exchange for said property is not marital however the increase in value of that property during the marriage is up for distribution. Pursuant to 23 Pa. C.S. §3501(a)(1), any increase in value for non-marital or separate property should be measured from the date of marriage or date of acquisition through the date of separation or date close to the equitable distribution hearing, whichever date results in a lesser increase. This provision is intended to protect the party with the interest in the non-marital property in situations where there may be a lengthy time period between when the parties separate and when they get to the point of dividing the property.

Section 3501(a)(1) also discusses the potential for offsets in any increase in non-marital property by a decrease in non-marital property. Accordingly, if Wife had an increase in non-marital property as well as a decrease in non-marital property of the same amount, the two occurrences would cancel each other out. However, if the increase is greater than the decrease, the increase would be reduced by the extent of the decrease for a net value. This rule applies to the non-marital property of each spouse. In other words, Wife’s increased value in non-marital property can only be offset by her decreased value in non-marital property, not Husband’s, and vice versa.

Click here to read more on equitable distribution.

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Guardian Ad Litem

A guardian ad litem (GAL) is an attorney the court appoints to represent the best interests, and often times the legal interests, of a child in a court proceeding. Once appointed, the GAL should participate in all future proceedings as necessary to continue to ensure the child’s interest. By law, the GAL is mandated to meet with the child as soon as possible following appointment. Additionally, the GAL should review all the relevant records related to the case and conduct further investigation as deemed necessary. Further investigation may include speaking with the child’s parents and/or guardians as well as interviewing other potential witnesses.

The GAL’s ultimate responsibility to the court is to make specific recommendations for an order that will address the child’s safety and provide for his or her best interests. The GAL’s responsibility as it relates to the child is to explain the proceedings to the child in a manner that they can understand. Additionally, the GAL is to explain the child’s position to the court along with any evidence in support of their position. A GAL must be appointed in any case where it is alleged that the child is a dependent. A GAL may be appointed in other instances such as custody cases or Protection from Abuse cases involving the child. It is possible that a child can be appointed a GAL to protect their best interests and a separate attorney to protect their legal interests.

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Non-Marital Property

Section 3501 of the Divorce Code defines what will be considered marital property versus what will be considered non-marital property. Specifically, marital property will include all property acquired by either party from the date of marriage through the date of separation. There is a presumption all property acquired during the marriage is marital regardless of how title is held (e.g. individually vs. jointly). It will also include the increase of value of any non-marital property during the course of the marriage. 23 Pa C.S. 3501 goes on to list what property will not be considered marital under the statute. Property acquired prior to the marriage or in exchange for said property is not marital as well as property expressly excluded by valid written agreement of the parties at any time.

Property received as a gift from any person other than the other spouse is not marital along with any property acquired after final separation but potentially prior to the entry of a divorce decree as long as marital property was not used in its acquisition. Any inheritance received is treated as a gift and will also be deemed non-marital so long as it is not subsequently commingled with marital funds. The court will also not look at property that was disposed of in good faith while the marriage was intact. An example would be property sold to a family member for its fair market value. Veterans’ benefits cannot be attached, levied or seized except in the case where a portion of the veteran’s retirement pay was waived in exchange for the benefits. Finally, any payment from a cause of action or lawsuit where the underlying claim occurred before the marriage or after separation.

Click here to read more on Equitable Distribution.

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New Rules for Montgomery County

Montgomery County has just adopted a number of changes to their local rules regarding divorce matters. Where there are pending claims for equitable distribution, the moving party should file a Motion for Entry of Grounds and Appointment of an Equitable Distribution Master. The moving party will now have to pay a $400 fee at the time the Motion is filed. The Motion should certify that all discovery is complete. A list of all the assets and debts at issue along with their corresponding values must also be included. Finally, the initial pre-hearing statement should be attached including a completed Inventory and Appraisement. Once the Motion and all its required accompaniments are filed, a copy of the same should be served on the other party. A Certificate of Service should then be completed and filed with the court.

The non-moving party has forty-five (45) days from the date of service to file their own pre-hearing statement and Inventory and Appraisement. Similarly, a copy should be served on the moving party and a Certificate of Service should be filed with the court. The non-moving party must also certify that all discovery is complete and include a list of all assets and debts with values as of the date of filing the certification. The failure of either party to comply the Rule may result in sanctions including the disallowance of testimony or introduction of evidence at the time of the equitable distribution proceedings from the party that failed to comply. Where equitable distribution, alimony or counsel fees is not at issue or has settled by agreement and grounds have been established, the moving party can file a praecipe to transmit the record for divorce decree.

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Same-Sex Marriage

Just short of a year following the US Supreme Court decision that the federal statute, the Defense of Marriage Act (DOMA), was unconstitutional, Pennsylvania has followed suit in recognizing its own marriage laws are also unconstitutional. In a decision rendered May 20, 2014, the Honorable John E. Jones, III, sitting for the US District Court in the Middle District on the case of Whitewood v. Michael Wolf, ruled that two of Pennsylvania’s laws regarding marriage were unconstitutional on the basis that they violated the Due Process and Equal Protection clauses of the Fourteenth amendment. 23 Pa. C.S. 1102, limiting marriage to heterosexuals, and 23 Pa C.S. 1704, prohibiting recognition of homosexual marriages even where the couples were legally married elsewhere, are no longer enforceable.

The case of Whitewood v. Michael Wolf was filed last July by 11 homosexual couples, five of which were unmarried and hoping to be married in Pennsylvania, and six couples who were legally married elsewhere but reside in Pennsylvania. The due process clause guarantees that all citizens shall have certain fundamental rights and the court held the right to marry the person of your choice is a fundamental right. The equal protection clause prohibits a state from denying a person in its jurisdiction equal protection of the laws. The Plaintiffs were successful in arguing for a heightened level of scrutiny to be applied as the classification on the basis of sexual orientation was quasi-suspect. Accordingly, Defendants were left with the burden to demonstrate an “exceedingly persuasive justification” as to how the statute prohibiting homosexual marriage served an important government objective. The court found the Defendants were unable to carry that burden. As the closing remark in the opinion by Judge Jones states: “We are a better people that what these laws represent, and it is time to discard them into the ash heap of history.” 

Click here to read more on issues regarding same-sex couples.

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Self Support Reserve

The self support reserve is the amount of money a parent paying support needs to have available to support themselves. It is intended to ensure low-income parties can meet their own basic needs as well as provide an incentive for continued employment. In Pennsylvania, the self-support reserve is presently $931 a month. This number reflects the federal poverty level for one person. In calculating a support award when the party to pay support has income equal or less to the self-support reserve amount, the court can only award support after consideration of the parties’ actual financial resources and living expenses instead of a strict adherence to the guideline amount.

New Jersey also has a self-support reserve to consider in determining a support award. The self-support reserve for New Jersey is calculated based on 105% of the U.S. poverty guideline for one person. If the net income of the party paying support drops below the self support reserve after consideration of the support award, the support should be adjusted. The exception to this rule is if the custodial’s parent’s net income minus the child support award is less than half the self support reserve amount in which case there is no adjustment. A court may impute income or assign an earning capacity to a party prior to a determination on whether application of the self support reserve is appropriate.

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New Custody Rules for Chester County

Chester County has just approved a number of changes to their local rules regarding custody matters. For all custody orders, it must be stated within the order that neither party will relocate with minor children without proper consent or court approval as required under Section 5337. For all initial complaints for custody or petitions for modification, the criminal history affidavit must be included. The non-moving party should file their criminal history affidavit within 10 days following service. After filing of the complaint or modification petition, the parties must attend an approved parenting class and provide proof of their attendance. Presently, the court approved parenting program is “Children in Between.” In some instances, the parties may also be ordered to attend a mediation session.

All temporary orders for custody should include language that it will become permanent in 180 days after filing of the underlying petition or 90 days after a conference, whichever is earlier, unless a demand for trial is filed including a certificate of trial readiness and pretrial statement. The pretrial statement must include a summary of the issues, concise statement of facts, list of all potential witnesses, exhibits that may be offered, a proposed final order, and an updated criminal history verification. An interim order shall be entered at the conference. Objections to the interim order shall be put in writing and filed with the prothonotary to be scheduled for a hearing. If the interim order would result in a change in primary custody, a request for a stay must be filed within 5 days.

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