Chobot v. ChobotChobot v. Chobot
- Reporters:
- ,
- Before:
- Baime, Ashbey J.A.D.
The novel issues raised by this appeal are the applicability of child support guidelines,
By judgment dated June 5, 1984, plaintiff husband and defendant wife were divorced. The final judgment incorporated a property settlement agreement signed by plaintiff on February 10, 1984 and by defendant on December 22, 1983. On January 9, 1987, defendant filed a motion for an increase in child support. Following oral argument the Family Part judge ordered that child support for the partiеs’ four children be increased from $70 to $105 per week; that plaintiff be responsible for one-half of all uncovered medical expenses of the children; that support payments be made through the Morris County Probation Department; that support arrears be fixed at $1,053.32 as of March 7, 1987; that plaintiff pay $20 per week toward the arrears and that if plaintiff were to miss two consecutive payments, a wage execution would issue. Plaintiff moved for reconsideration which was denied.
Plaintiff appeals from the ensuing orders of March 16, 1987 and May 11, 1987, and by leave granted defendant cross-appeals from the amount of support ordered.
On appeal plaintiff contends that,
Point I.
The court‘s modification of the property settlement agreement was not supported by evidence of a substantial change of circumstances.
Point II.
The child support guidelines enacted by court rule were impropеrly applied retroactively.
In her cross-appeal defendant contends that,
The trial judge abused his discretion by considering plaintiff‘s consumer debts, pension fund payments, retirement fund and life insurance expenses when computing child support payments.
From the parties’ submissions, the judge found that defendant received $200.28 per week net from her full time emplоyment, $70 per week from plaintiff and $50 per week from her second husband, giving her $1,379.20 monthly available income for one adult and five children. Defendant also received $204 per month in foodstamps.3 Her monthly expenses totalled $1,883.55, leaving her with a monthly shortfall of $504.35. She certified that she owed utility bills of over $600, and rent of over $200.
Plaintiff certified that he had stopped paying support because his second wife had been ill. He said that in November of 1986 his wife had begun a part-time job but was injured in a car accident. He also claimed that his poor health caused him to cut down the hours on his part-time job. In his case information statement plaintiff said that he owed nine creditors $11,443 and that his wife owed 25 creditors $12,674, of which $7,014 was for her car. At oral argument plaintiff admitted that over $2,000 of debt was for various consumer goods purchased at Bamberger‘s and J.C. Penney‘s.
The judge computed plaintiff‘s obligation in accordance with the child support guidelines as set forth in
Plaintiff‘s net weekly income $252.944 (56%) Defendant‘s net weekly income 200.28 (44%) ______ Total 453.22 (100%)
Weekly child support $188.00 Plaintiff‘s contribution 105.00 Defendant‘s contribution 83.00
On appeal plaintiff first contends that defendant was not entitled to an increase because she did not establish a change of circumstances. He relies upon the judge‘s statement in his statement of reasons that, “the file does not contain any Preliminary Disclosure Statements or other financial information that would allow a comparative analysis of the income earned by the parties, or either of them, when they were divorced or their present earnings.” Plaintiff further asserts that, despite the fact that he did not request onе, he was entitled to a hearing to disclose whether plaintiff transferred assets to defendant which she could use to support the children5 and to determine the needs of the children as well as the parties’ abilities to pay.
We find this argument unpersuasive.
Plaintiff also asserts that the trial court‘s application of the child support guidelines imposed a manifest injustice upon him because his agreement was based upon the law as it existed at the time of his divorce.
The guidelines set forth in Appendix IX of these Rules shall be applied when an appliсation for support, made pursuant to any section of these Rules, is considered by the court. The guidelines may be modified or disregarded by the court only where good cause is shown. Good cause shall consist of (a) the considerations set forth in Appendix IX-A or the presence of other relevant factors which may make the guidelines inapplicable or subject to modification, and (b) the fact that injustice would result from the application of the guidelines. In all cases, the determination of good cause shall be within the sound discretion of the court.
We are satisfied that the court properly reviewed the current circumstances of the parties according to the guidelines, despite a prior agreement. Plaintiff had no vested contract right which might defeat his obligation to meet the needs of his dependents. See Lepis v. Lepis, supra, 83 N.J. at 145-146.8 The Family
We agree with defendant on the cross-appeal, however, that, to the extent the trial court reduced plaintiff‘s available annual income by $3,404, representing life insurance, unsubstantiated pension and retirement contributiоns and wage garnishments, the court erred.9
On this issue the trial judge issued a statement of reasons. He said,
In his Case Information Statement the plaintiff deducts the sum of $1,825.00 per year for wage executions before arriving at a net monthly income of $1,087.64 or $252.94 per week. While there may be some dispute with respect to whether or not the debts set forth by the plaintiff are legitimate deductions for purposes of arriving at his net income the court is satisfied thаt it would be unreasonable to completely ignore the economic realities of the present situation. Mr. Chobot and his wife have incurred a significant amount of debts and it is going to take a significant period of time to satisfy those debts. It appears that there may be some economic relief in sight for the plaintiff since it now appears that his wife is in a position to return to work following a lengthy period of disability.
Plaintiff‘s counsel rеpresented that the wage executions were for the following debts: (1) Hayne‘s department store, $300 (for plaintiff and all his children); (2) Medical Associates, $295.27 (for plaintiff and his wife); (3) Dr. Martin, $170.14 (for plaintiff); (4) First Fidelity Bank, $4,078.05 (plaintiff‘s personal loan to repay accumulated debts); (5) Bamberger‘s department store, $1,729.96 (for plaintiff, his children and his wife); (6) Mastercard, $1,446.95 (for plaintiff‘s attorney‘s fees); (7) J.C. Penny‘s department store, $573.99 (for plaintiff‘s wife‘s and his wife‘s daughter‘s dresses), and (8) Americаn Express, $350 (for
The child support guidelines detail how to calculаte net available parental income. Starting with gross income, a parent is credited with mandatory deductions for state, federal and local taxes, social security, mandatory retirement contributions and union dues. Allowable exemptions also include unreimbursed premiums for medical and dental insurance and support orders in other support cases (see Pressler, Current N.J.Court Rules, Appendix IX-D (1988)). There is no question but that the challenged deductions were not permissible. Plaintiff asserts that the application of the guidelines was not required, however, but, rather, discretionary.
The extent to which the Family Part judge remained free to determine “economic realities” following promulgation of the support guidelines must be judged in light of preceding legislative history. The support guidelines were implemented according to the mandate of the Federal Child Support Enforcement Amendments of 1984,
In particular,
Plaintiff further argues that, assuming the guidelines were applicable, the judge applied the “good cause” exception for deviation which the guidelines provide for.
Considerations which may make these child support guidelines inapplicable or cause the child support amount to be adjusted are:
1. These tables and procedures are not generally intended to apply to parents with a combined net income which is below the poverty level (as set forth in the Federal Register) оr in excess of $42,000 per year. Parents at these extreme income levels should be subject to child support orders based upon individual case review. However, obligor parents earning less than the poverty level shall be ordered to pay a nominal child support amount to
establish the principle of payment and lay the basis for increased orders if income increases in the future (See Appendices IX-B and IX-C). 2. Thesе child support guidelines are based upon traditional custody and visitation arrangements.
3. These child support guidelines do not take into account the economic impact of the following factors:
(a) spousal support;
(b) equitable distribution of property;
(c) tax consequences;
(d) fixed direct payments;
(e) unreimbursed extraordinary medical/dental expenses for the obligor parent;
(f) educational expenses for the child(ren) or the spouse (i.e. those incurred for private, parochial, or trade schools, other secondary schools, or post-secondary education where there is tuition or other costs beyond state/local tax contributions);
(g) verified non-court ordered support needs of children from other relationships;
(h) families having more than six (6) children.
* * * * * * * *
The above enumerated considerations should not limit the Court from taking into account other significant factors which may cause these child support guidelines to be inapplicable or cause the child support amount to be adjusted.
Conspicuously absent from this list is debt created by consumer spending, life insurance or non-mandatory retirement contributions. Under the New Jersey Support Enforcement Act (
The Subcommittee Report of 1985 also emphasized that effectiveness of the guidelines depended on the method of calculating each spouse‘s available income. The ability to pay for рarental goods and services was separated from relevant available parental income. 116 N.J.L.J. at 826-827 (Subcommittee Report 1985). The only articulated caveat was that the obligated spouse must be able to maintain a minimum adequate standard of living as defined by federal standards, 116 N.J.L.J. at 826.
Because we are persuaded that relevant child support guidelines were not applied, we remand the matter to the trial court to make a redetermination of child support after considering appropriate submissions by the parties and the guidelines. We do not pass upon the question of whether plaintiff‘s submissions, if properly related to the guidelines, represented “good cause” for deviation.
The order appealed from is otherwise affirmed.