Humphreys v. Deross2/20/2002
We granted allocatur in this case to address the issue of how the receipt of an inheritance affects child support obligations of a payor. For the reasons that follow, we reverse the Order of the Superior Court that affirmed a decision by the Court of Common Pleas of Crawford County (trial court), which held that an inheritance was income available for support.
FACTS AND PROCEDURAL HISTORY
Appellant, William DeRoss (DeRoss), is the father of Angela, born March 3, 1981. Angela lives with her adult sister, Beth A. Humphreys (Humphreys), who is the Appellee in this matter. DeRoss receives $858.00 in Workers' Compensation benefits, twenty percent of which he owes to his attorney. He also receives $355.00 in social security disability payments per month. In 1997, DeRoss' mother died, leaving him as the sole beneficiary of her estate. On August 25, 1999, the estate sold his mother's house, and realized $83,696.50, which it distributed to DeRoss. From the proceeds, DeRoss purchased a home and other items for his current family. On August 28, 1997, Humphreys filed a petition for modification of an existing support order asserting a change in DeRoss' circumstances because of the inheritance.
A hearing officer determined that the entire amount of the inheritance was income to DeRoss, and prorated it over the remaining period of Angela's minority. Thus, he imputed to DeRoss an additional $4,525.00 per month in income. Based on the Support Guidelines, DeRoss' obligation was $723.45 per month minus $108.00, which Social Security paid to Angela on behalf of DeRoss. On November 24, 1997, the trial court adopted the hearing officer's recommendation and set the support obligation at $615.45 per month, retroactive to August 31, 1997. With an adjustment for arrears, the court ordered him to pay $700.00 per month for Angela's support. DeRoss sought a de novo hearing, following which the trial court issued an Order on May 20, 1998, reducing the support obligation of DeRoss to $609.45 per month due to an increase in the amount Angela was receiving from Social Security. Appellant filed an appeal to the Superior Court, which affirmed the Order of the trial court.
DISCUSSION
In reviewing child support matters, appellate courts apply the abuse of discretion standard. Ball v. Minnick, 648 A.2d 1192 (Pa. 1994). This Court has defined an abuse of discretion as follows:
Not merely an error of judgment, but if in reaching a conclusion the law is overridden or misapplied, or the judgment exercised is manifestly unreasonable, or the result of partiality, prejudice, bias or ill-will, as shown by the evidence of record, discretion is abused. Blue v. Blue, 616 A.2d 628, 631 (Pa. 1994) citing In re: Women's Homeopathic Hospital of Philadelphia, 142 A.2d 292, 294 (Pa. 1958).
Our analysis begins with the definition of "income" set forth in Section 4302 of the Domestic Relations Code, 23 Pa.C.S. ยงยง 101 - 8215:
"Income." Includes compensation for services, including, but not limited to, wages, salaries, bonuses, fees, compensation in kind, commissions and similar items; income derived from business; gains derived from dealings in property; interest; rents; royalties; dividends; annuities; income from life insurance and endowment contracts; all forms of retirement; pensions; income from discharge of indebtedness; distributive share of partnership gross income; income in respect of a decedent; income from an interest in an estate or trust; military retirement benefits; railroad employment retirement benefits; social security benefits; temporary and permanent disability benefits; workers' compensation; unemployment compensation; other entitlemen
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