Debt Compromise

It can be difficult to catch up on support if a large arrears balance accrues. Unfortunately, sometimes the party paying support has good intentions to pay support but due to circumstances out of their control, end up falling behind. It may be possible to arrange a settlement to clear up an arrears balance. The settlement will generally involve a reduced total in exchange for a lump sum payment. Such an arrangement can be agreed upon between two private parties at any time. There is more gray area when the debt is owed to the State.

The majority of the states either have a fully implemented debt compromise plan or make a decision on debt compromise proposals on a case-by-case basis. The rationale in even allowing debt compromise is to increase the likelihood the states will receive some of the debt owed as opposed to no payment at all. Pennsylvanian and New Jersey both consider debt compromise plans on a case-by-case basis. In Pennsylvania, by rule of the Supreme Court, any compromise on debt owed to the state must be approved by court order.

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County Differences: Support

There are some differences in procedure among the different counties even though the same law applies. One example is as it relates to support proceedings. Bucks County uses a two-tier system for handling support matters. The first step involves a conference before a court officer. At the conference level, both parties are required to bring proof of their income in the form of pay stubs, tax returns, W-2’s, etc. The officer presiding over the conference will use the income information provided to determine the net income of the parties and subsequently run a calculation based on the state-wide guidelines for support. If the parties are agreeable to the support number generated by the calculations, they can sign a final order for support in that amount. If either party is not agreeable, the next step is a hearing before a Judge.

Montgomery and Philadelphia Counties use a three-tier system in support cases. The first step is a conference as is the case in Bucks County. The second step is a Masters Hearing. The Master is not a Judge but an attorney specially trained in support matters. The Master will hold a hearing where they can hear testimony from both parties and review exhibits. At the conclusion of the hearing, the Master will make a report outlining recommendations for support. The parties receive a copy of the recommendations and are advised that if they do not file exceptions to the recommendations within the time frame allotted, the recommendation becomes a Final Order. If exceptions to the Master’s recommendation are filed, then the matter proceeds to the third-step which is a hearing before a Judge.

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National Adoption Day

November is National Adoption Month. This is the 18th year for recognition of National Adoption Month. It started as National Adoption Week in 1984 on the motion of President Ronald Reagan. In 1995, President Clinton extended the recognition from a week to the entire month of November. Pennsylvania participates in presentation of a proclamation every year regarding National Adoption Month pledging its commitment to make sure every child has a place to call home. Pennsylvania specifically recognizes the Statewide Adoption & Permanency Network and PA Adoption Exchange as organizations that work towards the overall goal of permanency for all children.

In addition to a month-long awareness, a National Adoption Day is also recognized. This year it will be November 23, 2013. Philadelphia celebrated last week by completing eighteen adoptions on November 15, 2013. In addition to the completion of the adoptions, the Philadelphia Family court provided face painters, balloons and  Mummers as part of their celebration. Another event was held on November 19th in Harrisburg, PA as Dauphin County celebrated National Adoption Day. PA estimates that currently there are approx. 2,500 children in foster care awaiting adoption. You can visit www.adoptpakids.org for more information on the adoption process as well as many of the children in need of a home.

 

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Service in Divorce

Once a divorce complaint is filed it must be served on the opposing party before the matter can proceed. Pennsylvania Rule of Civil Procedure 1930.4 discusses acceptable methods of service for all domestic relations matters. The complaint must be served by personal service or certified mail, restricted delivery, return receipt requested. If personal service is accomplished, the person effectuating service should complete an affidavit of service indicating when and where the opposing party was served. Personal service can be carried out by any adult that is not a party to the action. The Sheriff can be contacted to effectuate personal service for a fee. There are also numerous process server companies that will effectuate service for a fee. Alternatively, the opposing party can opt to sign an Acceptance of Service form which serves to waive any defects of service under the rules.

Service in a divorce matter generally must be accomplished within 30 days of when the complaint was filed. The exception is where service will be done outside of the Commonwealth in which case 90 days is permitted. If service is not completed within the applicable time frame, the complaint must be reinstated. After the reinstatement, a new time period begins to run. However service is accomplished, proof of service should be filed with the court. If service cannot be accomplished, the court can be petitioned to allow service by publication. The petition for service by publication must describe all the efforts made to find the other party by other means. If the petition is granted, notice would be published in a legal publication and a newspaper of general circulation in the county of the other party’s last known residence.

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Vanishing Credit

The court may give credit for individual property brought into the marriage depending on the circumstances. Generally, any credit to be received decreases with the length of the marriage. For example, Bucks County will reduce the credit by 5% a year such that there is no longer a credit after 20 years. A prime example of a situation where this rule would be applicable is the purchase of a marital home. Say Spouse A contributed $40,000 of their pre-marital money to the purchase of the house. If the parties separated after 5 years, the amount of Spouse A’s individual contribution is reduced by 25%. Accordingly, Spouse A would argue that 75% of the $40,000 down payment, or $30,000, is their separate property and not subject to equitable distribution in the divorce.

The rules on credit for individual or pre-marital property can vary county to county since it’s not a statute, but more or less a policy used by the respective Masters when looking at the marital estate in a divorce matter. Be careful with the commingling of individual property with marital property. It will be hard to make an argument on the amount of individual property that should be credited to a party if it’s hard to trace the source of the funds. If you encounter a situation in your divorce where it may be necessary to make a distinction between assets that are clearly marital versus those that you can trace back as being pre-marital and/or separate, you should be sure to consult with an attorney with experience in the valuation of these type of assets or risk all of the assets being addressed in equitable distribution and subject to division with your spouse.

Click here to read more on dividing marital property in divorce.

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Pre-Trial Conferences in Custody

A number of changes to the Pennsylvania Rules of Civil Procedure regarding custody took place this summer. One change, Rule 1915.4-4, provides the opportunity for a pre-trial conference in a custody matter. Either party may request the conference by written request in the form of a praecipe. Alternatively, the court can schedule one on its own motion. The timing of the pre-trial conference is after the parties have made their initial appearance at a custody conference but prior to the hearing scheduled before a Judge. The Rule provides the pre-trial conference should be scheduled at least 30 days prior to the start of a custody hearing. The Judge will preside over the pre-trial conference in chambers if both parties are represented.

 

At least 5 days prior to the pre-trial conference, each party must submit a statement to the court as well as the opposing party. The statement must include the name and address of all anticipated witnesses, including expert witnesses, along with their relationship to either of the parties, if any. The statement should also include a proposed custody order setting forth the schedule sought. Finally, all exhibits and/or reports that may be referenced in a hearing must be served on the opposing party but not submitted to the court. The goal of the pre-trial conference is to narrow and/or resolve any issues remaining for trial and encourage settlement of the case. At the conclusion of the conference, the court will enter an order outlining any agreements reached and limiting the issues for trial to those not already resolved. Hopefully this new procedure will be useful and reduce the likelihood of unnecessarily contentious custody battles in open court.

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Service Members Civil Relief Act

The Service Members Civil Relief Act (SCRA) was signed into law by President Bush in 2003. It was an overhaul of the SSCRA which had been law since 1940. The main purpose of the SCRA is to protect service members from civil lawsuits while they are on active duty and unable to adequately defend themselves. The protections of the SCRA, accordingly, apply to family law matters such as divorce, custody and support. Divorce complaints must either include a statement that neither party is a service member on active duty or be accompanied by an affidavit of non-military service. The service member has the right to waive their protection under the SCRA and still proceed if they desire to. Any waiver of rights under the SCRA must be in writing.

The SCRA provides for a mandatory stay of civil proceedings if the case does involve a service member in active duty. The stay period may be extended if necessary. An application for a stay should establish that the present active duty impairs the ability of the service member to appear and defend themselves in the civil action. The application should also indicate when the service member expects to be available to participate. A statement by the service member’s commanding officer needs to be provided corroborating the facts alleged by the service member in the application. An SCRA website is available where inquiries can be made into the active duty status of any individual.

Click here to read more on the impact of military obligations.

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Health Insurance for Children

Health insurance for minor children is an issue dealt with in the context of child support. If the children are presently covered under a plan through one of the parents, the children can remain on that plan. The other parent would then contribute to the premium being paid if applicable. This can be achieved by an increase over the guideline support amount if the party receiving support is paying the premium or a decrease if the parent who is receiving support is not the one providing the coverage. A change in which parent provides the coverage may be beneficial if one parent’s coverage is better than the other or less expensive but with similar coverage. Sometimes, the motive in changing plans is for the parent paying support to reduce the support paid directly to the other parent by adding the children to their plan instead.

If the children are receiving health insurance at no cost to either party it does not affect the guideline support amount. This may happen if one of the parents is employed by a company that covers 100% of the premium. This can also occur if the children are insured through a government program such as medical assistance or CHIP (Children’s Health Insurance Program). Health insurance is only to be provided by one of the parents if at a reasonable cost. The court does not go so far as to mandate health insurance regardless of the financial circumstances of the parties. Again, thanks to programs like CHIP it is possible to ensure the children have health insurance even if the parents cannot afford it. However, even parents should reconsider the financial consequence of not having health insurance given the enactment of the Affordable Health Care Act and the penalties of failing to obtain health insurance going forward. Subsidies may be available based on income to ensure health insurance coverage at a reasonable cost.

 

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Consenting to Adoption

One of the ways an adoption can proceed is if the natural parent(s) consent to the adoption. Pursuant to 23 Pa. C.S. Section 2711, a consent must be signed by the following individuals where applicable: (1) the child(ren) being adopted if over 12 years of age; (2) the spouse of the adopting parent if that spouse is not also a petitioner; (3) the natural parent(s) of any minor child(ren) being adopted; (4) the guardian of an incapacitated child up for adoption; and (5) the guardian of a minor child or persons having custody when the adoptee has no parent whose consent is required. There are several timing rules that must be adhered to. First, the consent cannot be signed by a natural mother within 72 hours, or three days, after the birth of a child. A consent can be signed by a natural father at any time after he has been notified the child is expected to be born or has been born. Executed consents become irrevocable after 30 days. The can be revoked on the basis of fraud or duress within 60 days.

As far as other technical requirements, the consent must include the date, full address of place of execution, and be witnessed by two adults whose name, address and relationship to the person executing the consent are provided. It is good practice to also have the consent notarized nad the notary’s complete address should be included. Another practical tip is to be careful who you select as a witness. The persons witnessing the consents may be called upon in court to testify as to the circumstances under which the consent was executed. The court must be satisfied that there was no fraud or duress and the person executing the consent was of sound mind. Having the prospective adoptive parents as witnesses can lead to an inference of duress whereas relatives of the natural parents can be biased so it is preferable to use impartial and credible witnesses with no interest in the outcome of the adoption. Without either proper consent or termination of parental rights, an adoption cannot proceed.

 

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Military Service and Child Support

There are several options in providing for child support of minor children when one of the parents is in the military. One option is the traditional method of pursuing court-ordered support through the state court with jurisdiction. An issue that may pop up in this instance is the Servicemember’s Civil Relief Act (SCRA) which mandates a stay on civil matters while a servicemember is on active duty. A servicemember can waive this statutory protection in writing and proceed with any civil matter, including family law issues, at their discretion. Another option is to reach an agreement on support. Written support agreements can be enforced through the military or the state court with jurisdiction.

A final option where there is no agreement and the servicemember has not elected to proceed with a state court child support proceeding is for the relevant branch of military to establish an interim support amount based on their regulations. All branches of the military maintain regulations that require a duty of support by the servicemember to their family/dependents. Most branches of the military have established support requirements that are tied to the number of dependents requiring support (spouse and minor children) and their gross pay and/or Basic Allowance for Housing (BAH). See the links below or specific information on how support is calculated by the various branches of the military in the absence of a court order or agreement.

Air Force: www.e-publishing.af.mil/shared/media/epubs/AFI36-2906.pdf

Army: http://armypubs.army.mil/epubs/pdf/R608_99.PDF

Navy:http://www.public.navy.mil/bupers-npc/reference/milpersman/1000/1700Morale/Documents/1754-030.pdf

Marine Corps: http://www.lejeune.usmc.mil/legal/dependent_support_regulations.pdf

Coast Guard: http://www.uscg.mil/lsc/coast_guard_provisions.asp 

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