B.J.S. v. D.F.K.

Superior Court of Pennsylvania·Decided April 20, 2018·No. 1005 MDA 2017·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

B.J.S. IN THE SUPERIOR COURT OF

PENNSYLVANIA

Appellant

v.

D.F.K.

Appellee No. 1005 MDA 2017

Appeal from the Order Entered May 19, 2017 In the Court of Common Pleas of Columbia County Domestic Relations at No: 00306-DR-2009, PACSES NO. 421111164

BEFORE: PANELLA, STABILE, and PLATT,* JJ. MEMORANDUM BY STABILE, J.: FILED APRIL 20, 2018 Appellant, B.J.S. (“Mother”), appeals from an order dated May 19, 2017 that recalculated the child support obligation of D.F.K. (“Father”). The trial court lacked jurisdiction to enter this order, because the record in this case had not yet been remanded to the trial court from Mother’s prior appeal to this Court at 1293 MDA 2016. Thus, we quash Mother’s appeal from this order. We also take the opportunity to make several observations that might assist the trial court during further proceedings in this case.

* Retired Senior Judge assigned to the Superior Court.

PROCEDURAL HISTORY

I. Background. Mother and Father married in 1999 and separated in 2009. Two children were born during the marriage in 2002 and 2006.

In September 2009, Mother filed a complaint for child support and spousal support. On November 4, 2009, Mother obtained a child support award in the amount of $1,005.12 per month. The court did not award Mother spousal support.

In early 2015, Mother filed a petition for modification. On December 17, 2015, a master held a hearing during which Mother presented testimony regarding unreimbursed medical and tutoring expenses. Father testified about his income from wrestling camps that he operated and defended discrepancies between his total bank deposits and the income he claimed in his federal taxes. Father attributed the discrepancies to money he earned from investments and contributions by his paramour, L.C., to a shared credit account. On March 24, 2016, the master held a second hearing in which Mother and Father provided further detail regarding their income and child- related expenses.

On March 31, 2016, the master authored a recommendation and report awarding Mother child support of $764.68 per month. The master calculated this award using an agreed-upon monthly earning capacity for Mother of $2,164.70. The master determined that Father’s monthly earning capacity was $5,096.92 by averaging his Schedule C net income for 2013, 2014 and 2015. Utilizing the support guidelines, the master arrived at a child support

award of $955.98 per month, which it deviated downward pursuant to Pa.R.C.P. 1910.16–5 due to substantial other income in Mother’s household provided by her current husband, G.S. The master made an additional twenty percent reduction pursuant to Pa.R.C.P. 1910.16–4(c) due to Father’s significant period of partial custody.

Mother filed exceptions to the master’s recommendation and report, and by order dated July 25, 2016, the trial court denied and dismissed her exceptions. The court adopted the master’s report and confirmed the previously calculated child support award. Mother appealed to this Court at 1293 MDA 2016. Mother filed a brief in this Court; Father did not.

II. This Court’s May 4, 2017 memorandum. In a memorandum dated May 4, 2017, this Court vacated the trial court’s order and remanded for further proceedings. We held:

[W]e find the court did not abuse its discretion in deviating from the support guidelines in regards to Father’s substantial partial custody or L.C.’s contributions to Father’s household expenses.

The court did err in calculating Father’s income, applying a deviation from the guidelines based on G.S.’s 2013 income, and failing to attribute to Father his proportionate share of the childrens’ tutoring expenses. Accordingly, we vacate the support order and remand for recalculation of Father’s net income and support obligation in accordance with this memorandum.

B.J.S. v. D.F.K., 1293 MDA 2016, at 15-16 (Pa. Super., May 4, 2017).

We rejected Mother’s argument that the trial court erred in reducing Father’s child support obligation by twenty percent due to “substantial or shared physical custody.” Id. at 6-8. We held that the trial court’s ruling on

this subject was supported by Father’s credited testimony that he exercised custody over the children 43½ percent of the year. Id. at 7-8.

On the other hand, we held that the trial court erred in calculating Father’s income. We reasoned:

Mother alleges that Father’s bank records showed deposits of approximately $141,000[.00] for 2014. However, Mother continues, Father only reported a net income of $68,000[.00], after deducting his business expenses of approximately $30,000[.00] . . . Hence, she concludes that the trial court miscalculated Father’s income, and that he should be assessed a higher monthly income than what was utilized in arriving at his support obligation.

The master’s report and recommendation included the following findings of fact with regard to Father’s income:

1. Father’s [wrestling] camp income was only [$]696[.00] in 2015, and no camps planned [sic] for 2016. Not assigning income from this in making this recommendation.

2. [Father’s] business fluctuates. Gross income varies, but expenses are similar year-to-year. Using average of past 3 years income in this recommendation.

3. [Mother] presented evidence of $141,000[.00] in cash flowing through [Father’s] bank [account]. [Master was] not persuaded that this was all from his business. However, for sake of argument, even if there was some [additional] business income, you need to subtract business expenses to get net.

That net would be subject to self-employment taxes in addition to income taxes, resulting in much lower amount than the $8,948 net/month proposed by [Mother].

Master’s Report, 3/31/16, at unnumbered 3. The trial court adopted this position, observing, “[Father’s] income was properly calculated . . . [t]he cash flow through [Father’s] bank accounts does not alter this figure, as [Father] had adequate credible explanations (e.g., holding his [m]other’s investments for placements[.] )” Final Order, 7/25/16, at unnumbered 1 n.1. As it stands, the master attributed Father’s additional income to his

business, and the trial court attributed the difference to cash he received on behalf of his mother. We find that the record does not support either of these findings.

Instantly, Mother presented evidence of a discrepancy between Father’s reported 2014 income and the deposits in his sole bank account. N.T. Modification Hearing, 12/17/15, at 35–36, 70.

Mother noted that Father had deposits totaling $141,617.83 in 2014, but he had reported income from his business tallying only $96,908[.00]. Id. at 70. When asked to explain the difference, Father averred, “I may have liquidated some investments—moved them into my account and reinvested them. Stuff like that.” Id.

at 71. Father conceded that some of the difference was due to his income from wrestling camps, but when he was pressed to explain the remainder, he stated, “I am thinking [I liquidated]

other investments.” Id. at 72. In addition, Father acknowledged that half of a $26,661.13 deposit in 2015 was his portion of a shared investment with his mother. Id.

We find the trial court erred in failing to include Father’s deposits from his investments as income. Father’s testimony indicated that he obtained large cash payments from his investments in 2014 and 2015. Although he did not explain the nature of his investments, in light of the expansive definition of “income”

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