Price v. Price (In re Price), 545 B.R. 114

Kimberly Price filed a complaint to object to discharge of a debt owed by James W. Price in a bankruptcy case.
The dispute arises from a Consent Order (Dec 14, 2011) modifying a 2002 Separation Agreement and Property Settlement.
The Consent Order affected child custody, child support (paragraph 2), and a mortgage obligation (paragraph 7) tied to the residence.
Plaintiff asserts paragraph 7 payments are nondischargeable domestic support under 11 U.S.C. § 523(a)(5); Defendant argues they are dischargeable mortgage obligations.
The Chapter 13 case was filed Jan 9, 2015; the adversary proceeding was filed Apr 21, 2015, and the matter was decided on documents and stipulations.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether paragraph 7 mortgage obligation is nondischargeable under 523(a)(5).	Price; the mortgage payment is part of alimony/support tied to child welfare.	Price; paragraph 7 is a mortgage obligation to a lender and dischargeable.	Nondischargeable under 523(a)(5).
Whether the four elements of 523(a)(5) are satisfied for paragraph 7.	Obligation owed to a non-governmental party, arises from a settlement, is for support, and not assigned.	Obligation not in the nature of support and is a dischargeable property settlement.	All four elements satisfied; paragraphs 2 and 7 are nondischargeable.

In re Gianakas, 917 F.2d 759 (3d Cir. 1990) (factors for determining nature of obligation; focus on intent and surrounding circumstances)
Buccino’s Buccino, 580 A.2d 13 (Pa. Super. 1990) (flexible factors for distinguishing alimony from property settlement)
In re Calhoun, 715 F.2d 1103 (6th Cir. 1983) (alimony/maintenance can be owed to ex-spouse even when tied to a mortgage)
In re Spong, 661 F.2d 6 (2d Cir. 1981) (obligations can be owed to ex-spouses under 523(a)(5))
In re Hayden, 456 B.R. 378 (Bankr.S.D. Ind. 2011) (mortgage payments linked to child welfare can be nondischargeable)