Cygan, C. v. Cygan, D.
525 WDA 2017
| Pa. Super. Ct. | Oct 27, 2017Background
- Parties married in 2004, separated in 2014; no children of the marriage. Marriage lasted ~10 years but parties lived in separate households for ~8 years.
- Husband (physician) paid most household and family expenses during marriage, depleted substantial premarital assets, incurred large debts (HELOC on farm, IRS tax debt).
- Husband’s premarital farm decreased in value; his premarital 401(k) increased substantially during the marriage.
- Wife received APL during litigation, limited work history during marriage, claims poor health and limited earning capacity; she received a portion of the marital estate and minimal marital debt allocation.
- Master issued recommendations on equitable distribution, alimony, APL, and counsel fees; trial court overruled Wife’s exceptions and entered divorce decree. Wife appealed; Superior Court affirmed.
Issues
| Issue | Wife's Argument | Husband's Argument | Held |
|---|---|---|---|
| Classification and offset of HELOC and 401(k) (equitable distribution) | HELOC was non‑marital; Husband didn’t prove HELOC proceeds funded marital expenses; court erred offsetting HELOC against Husband’s 401(k) increase | HELOC obtained during marriage and used for living/marital expenses; decrease in farm value offsets increase in Husband’s non‑marital 401(k) per §3501(a.1) | Court affirmed: HELOC is marital debt; decrease in farm value properly offsets increase in 401(k) value. |
| IRS tax debt classification | IRS debt arose from Husband’s pre‑marital retirement liquidation and bookkeeping error; Wife was granted innocent spouse relief, so debt is non‑marital as to Wife | Debt was incurred during marriage and Wife benefited from the funds/undistributed income; debt is marital | Court affirmed: IRS debt is marital and may be allocated as such despite IRS relief to Wife. |
| Termination/reinstatement of alimony pendente lite (APL) | APL should continue through appeal and any remand; termination upon decree was error | Trial court may terminate upon decree; but court granted emergency relief reinstating APL pending appeal | Moot: Trial court reinstated APL pending appeal (emergency motion granted); appellate disposition affirmed divorce decree. |
| Post‑divorce alimony and counsel fees | Wife needs alimony given poor health, lack of work history, and inability to access Social Security on Husband’s earnings for two years; requests counsel fees due to disparity and expenses | Husband already supported two households; assumed most marital debt; Wife received bulk of distributable estate and ongoing APL/arrear payments; no extraordinary counsel‑fee basis | Court affirmed denial of alimony and counsel fees: equitable distribution and support already reached economic justice; factual findings on Wife’s capacity supported. |
Key Cases Cited
- Morgante v. Morgante, 119 A.3d 382 (Pa. Super. 2015) (standards and factors for equitable distribution)
- Moran v. Moran, 839 A.2d 1091 (Pa. Super. 2003) (master’s credibility findings entitled to fullest consideration; alimony is secondary remedy)
- Litmans v. Litmans, 673 A.2d 382 (Pa. Super. 1996) (debts incurred during marriage are marital debts)
- Schenk v. Schenk, 880 A.2d 633 (Pa. Super. 2005) (APL ordinarily continues through appeal)
- O'Callaghan v. O'Callaghan, 607 A.2d 735 (Pa. 1992) (physical impairment and ability to earn income are factual determinations for trial court)