Tag Archive for: support

Questions regarding insurance policies often come up in the context of a divorce. Married couples may have commingled auto insurance policies, health insurance plans, and/or life insurance policies with their spouse as beneficiary. Technically, there are no rules on maintaining certain policies that existed at the commencement of the divorce in the sense that there is no automatic punishment or sanction for dropping these policies at separation. On the other hand, the courts have the power to order certain policies be maintained through their general equity powers in the period between separation and divorce. Perhaps, the most prudent action is to maintain all policies until finalization of the divorce or other mutual agreement or seek the advice of an attorney first to avoid the potential of additional fees that may be incurred if you are ordered to reinstate any policy and/or be responsible for any liability incurred while the other party was uninsured. Additionally, as it relates to health insurance specifically, it is routinely ordered as part of a support action and unreimbursed medical expenses, which can be substantial if there is a lapse insurance coverage, will also be shared.

Section 3502(d) of the Divorce Code provides that the court can order the continued maintenance and beneficiary designations of certain policies or even the purchase of new policies as part of equitable distribution. For example, life insurance policies may often be utilized as part of an equitable distribution award to ensure the receipt of ongoing support obligations such as alimony. If there is no agreement or Order on life insurance policies post-divorce, the insured should update their policies immediately to reflect their desired beneficiary. Pennsylvania estate law does provide that post-divorce the ex-spouse is no longer entitled to receive payment on the policy even if the beneficiary designation on the policy was never updated. However, this will only be the end result for a private policy. Policies sponsored by an employer are governed by federal law and under ERISA, the proceeds must be paid per the plan documents regardless of the termination of the marriage.

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Discovery is the process of obtaining information from the opposing party in the course of a lawsuit. Discovery is governed by the Pennsylvania Rules of Civil Procedure (Pa. R.C.P.). Rule 1930.5 states that there shall be no discovery in a simple support, custody or Protection from Abuse proceeding unless authorized by court. In order for you to be allowed to send discovery in a support matter, you must get your case deemed complex by the court. An example of a potentially complex support case requiring discovery would be one where one, or both, of the parties are self-employed. Procedure in Bucks County calls for a hearing date on the issue of whether or not discovery should be permitted. If so, the substantive portion of the hearing will be postponed pending completion of discovery as granted.

Formal discovery methods must adhere to the Rules of Civil Procedure and the acceptable methods include interrogatories, depositions, production requests, subpoenas to produce things and/or documents, and/or requests for admission. Interrogatories and production request are the most frequent methods of discovery in family law cases. Interrogatories are a written set of questions for the other party to answer. A production request lists all the documents a party is seeking. Subpoenas are a good tool when it is necessary to get information directly from the source in the instance a party does not have it, will not cooperate in turning it over, or you suspect they may tamper with the documentation. Examples of relevant documentation to seek in a support may include personal and business tax returns, W-2s, 1099 Forms, pay stubs, income projections, profit and loss statements, balance sheets, business ledgers, summaries or appraisals of all assets/property/equipment owned by the business, and statements for all personal and business bank accounts and/or credit cards.

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Former military members may be eligible to receive a number of different veterans benefits from the Department of Veterans Affairs (VA). Possible benefits include disability compensation, pension benefits, life insurance, educational benefits and more. The former service member may also be entitled to additional benefits for dependents. Where the service member is also responsible for paying child support, certain benefits can be garnished to ensure the support obligation is met. The first step is to correctly categorize the benefit to determine if it is subject to garnishment. The second step is establishing a need on the part of the party seeking support and other dependents as well as a failure by the veteran to supply the need. Thirdly, the VA must be assured that there will not be an undue hardship on the veteran as a result of the garnishment.

Procedurally, the party seeking the garnishment must apply for an apportionment. The form asks for information on the total income, sources of income, and expenses for the veteran as well as the custodial parent. The VA will review the request for apportionment and determine if it is appropriate. In either event a formal decision will be rendered. The final decision can be appealed to the Board of Veterans’ Appeals. The state child support agency will need to be involved with apportionment requests. Copies of the current support order and records of any arrears owed and former payment history will need to be supplied to the VA to review as evidence when making its determination on whether garnishment is appropriate and a reasonable amount to be garnished.

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Support in Pennsylvania is calculated based on a statewide guideline amount. Pennsylvania Rules of Civil Procedure 1910.16-6 outlines potential adjustments to a basic support obligation. Reasonable child care expenses paid by either parent can be added to a support calculation. The additional cost is then allocated between the parties in proportion to their income. Most additional expenses will be similarly divided among the parties based on their net income. Health insurance premiums on behalf of the other party and/or children can be included. Further, the portion of the premium attributable to the party paying it can also be allocated as long as a duty of support is owed to that party. Unreimbursed medical expenses are also covered. The first $250 is built into the calculations such that the party receiving support is expected to cover it. Expenses over $250 are split by the parties based on their relative amount of income. Expenses include co-pays, deductibles, dental and optical services as well as orthodontia. Expenses that are usually excluded include chiropractic, cosmetic and psychiatric/psychological services.

Private school tuition and summer camp may also be included in a support award if the court deems the expenses reasonable and necessary. Parties usually need to agree on private school in order for the tuition to be shared through a support award. Mortgage payments are the final category of potential adjustments. This provision only applies for a marital residence where only one of the parties continues to reside there. If the mortgage payment exceeds 25% of the net income of the party residing there, there may be a deviation resulting in an increase in support if the residing party is receiving support or a decrease in support if the paying party is residing there. The term “mortgage payments” is inclusive of all real estate taxes and homeowners insurances. At the court’s discretion, it may also include second mortgages, home equity lines and other obligations secured during the marriage secured by the marital residence.

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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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An out of state order may be enforced in Pennsylvania following registration of the order here pursuant to 23 Pa. C.S. 7605. Notice will be given to all interested parties regarding the proposed registration. If there is no response, the order will be registered. If a party contests the registration, a hearing will be scheduled. There are several defenses available to a party contesting registration of a support order under 23 Pa. C.S. 7607. First, the party can assert that the court that initially entered the order lacked personal jurisdiction. Second, the party can assert the order was obtained by fraud. Next, the party can establish the order has been vacated, suspended or subsequently modified by another order.

The fourth defense is that the order has been stayed pending appeal by the issuing court. Fifth, a defense under Pennsylvania law can be raised. Sixth, the party can establish full or partial payment has already been made. Finally, the party can assert the statute of limitations has already run barring enforcement on past due support amounts. If a party successfully proves one of the above-listed defenses, the court can decline to register the order. Additional options available to the court include continuing the matter for additional evidence and/or registration of the uncontested portion of the order. Once an order is registered, the court does not allow any further argument or defense so all defenses must be raised at the initial notice of registration.

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Many courts will recognize legal property and/or support rights arising from cohabitation of non-married parties. Palimony refers to the support obligation that may arise following the end of the relationship. NJ previously recognized palimony claims however a recent change to the law has made it more difficult to obtain by requiring a written agreement on support between the parties. This new statute did not result in the end of all palimony type claims however. Just a few months ago, in Joiner-Orman v. Orman, the court allowed a palimony award for Wife. The relationship lasted 39 years and Wife stayed home to raise the parties’ 4 children. The court relied on the doctrine of full performance to justify the palimony award in that Wife had fulfilled her end of the bargain as a homemaker and full-time Mom and so allowing Husband to leave the relationship without paying support would be unfair. The Orman case is not precedential as it is only a trial court decision and unreported.

Pennsylvania may also recognize some rights between unmarried couples as a matter of equity. Generally title controls ownership in the case of unmarried couples however there are exceptions to the general rule including unjust enrichment and quantum meruit. Unjust enrichment is the theory that it is unfair to allow the person that does not have title to be excluded from wealth they helped create. Quantum meruit is a Latin phrase meaning what one has earned. In this context, the court must consider whether the conduct of the parties evidences an agreement and/or expectation of some form of compensation for performance. Quantum meruit requires a contract or agreement, tacit or otherwise, whereas unjust enrichment does not and is just about the courts doing what is fair. The best way to avoid a legal battle if things go awry in any relationship is to have all agreements clearly stated and reduced to writing.

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A claim for spousal support may be denied where the spouse seeking support has engaged in conduct that would constitute grounds for a fault-based divorce. The fault grounds under the Pennsylvania Divorce Code include: (1) willful and malicious desertion without reasonable cause for at least one year; (2) adultery; (3) cruel and barbarous treatment of an injured and innocent spouse; (4) bigamy; (5) imprisonment for at least two years after conviction of a crime; and (6) indignities to the innocent and injured spouse which makes that spouse’s condition intolerable and life burdensome.

Many cases have touched on the issue of whether spousal support is appropriate due to alleged existence of another relationship outside of the marriage. It is up to the spouse who is objecting to a spousal support award to prove a fault ground for divorce by clear and convincing evidence. Adultery is defined as voluntary sexual intercourse with a person other than his/her spouse. Alternatively, indignities may be established even when the evidence does not necessarily support adultery. “Indignities may consist of vulgarity, unmerited reproach, habitual contumely, studied neglect, intentional incivility, manifest disdain, abusive language, malignant ridicule, and every other plain manifestation of settled hate and estrangement.” A single act by a spouse will not support a finding of indignities. Instead, it must be a course of conduct that renders the life of the innocent party intolerable or burdensome. Conduct which takes place after separation is generally not relevant, however, such conduct may be introduced if it will go to show the conduct began before separation.

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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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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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