Court Opinion

ID: 9649489
Source: CourtListenerOpinion
Date Created: 2023-08-23 14:56:09.069015+00
Date Added: 2024-06-11T09:53:27.484611
License: Public Domain

HUDOCK, J.:
¶ 1 In this appeal, we are asked to determine whether the trial court erred when it held that an inheritance received by William DeRoss (DeRoss) should be considered in the calculation of his income for child support purposes. The trial court’s order directed DeRoss to pay $607.45 per month in child support for his minor daughter, Angela. The order also set ar-rearage payments at $84.55 per month, for a total payment of $692.00 per month. Angela, born March 3, 1981, lives with her adult sister, Beth A. Humphreys (Hum-phreys), the appellee herein. Because we conclude that the statutory definition of income properly includes DeRoss’s inheritance under the circumstances of this case, we affirm.
¶ 2 DeRoss was the sole beneficiary of his mother’s estate. Upon her death in August 1997, the estate sold DeRoss’s mother’s residence, realizing $83,696.65 from the sale, and this sum was subsequently distributed to DeRoss. DeRoss purchased a new home with this money, and also purchased other items for his current family’s benefit. Thereafter, Humphreys petitioned the court for a modification of the existing support order based upon DeRoss’s changed circumstances, i.e., the inheritance. Following a hearing on the modification petition, the hearing officer imputed to DeRoss an additional $4,525.00 a month in income based upon the money he received as his inheritance. The hearing officer determined this additional amount by amortizing the lump sum received from the sale of the house over the period from the date of the modification petition until Angela’s eighteenth birthday. This appeal followed.
¶ 3 DeRoss raises two issues on appeal, namely:
I. Whether the Court below committed error in the holding that the entire amount of an inheritance received by Appellant is “income”, as that term is defined under 23 Pa.C.S.A. § 4302, for purposes of determining [the] level of child support.
II. Whether the attachment issued pursuant to the support order entered herein was in excess of the mandatory amounts prescribed by the Consumer Credit Protection Act, 15 U.S.C.A. § 1601, et seq.
Brief for Appellant at 3.
¶ 4 “When evaluating a support order, this Court may only reverse the trial court’s determination where the order cannot be sustained on any valid ground.” Calabrese v. Calabrese, 452 Pa.Super. 497, 682 A.2d 393, 395 (1996), appeal denied, 547 Pa. 722, 689 A.2d 230 (1997). We will not interfere with the broad discretion afforded the trial court absent an abuse of that discretion or insufficient evidence to sustain the support order. Id. An abuse of 'discretion is not merely an error of judgment; if, in reaching a conclusion, the court overrides or misapplies the law, or the judgment exercised is shown by the record to be either manifestly unreasonable or the product of partiality, prejudice, bias, or ill will, discretion has been abused. Depp v. Holland, 431 Pa.Super. 209, 636 *777A.2d 204, 205-06 (1994). See also Funk v. Funk, 376 Pa.Super. 76, 545 A.2d 326, 329 (1988). In addition, we note that the duty to support one’s child is absolute, and the purpose of child support is to promote the child’s best interests. Depp, 636 A.2d at 206.
¶ 5 In Pennsylvania, an award of child support is based upon the Child Support Guidelines promulgated by our Supreme Court. The guidelines were enacted to ensure “that persons similarly situated shall be treated similarly.” 23 Pa.C.S.A. § 4322(a). When faced with a request for child support, a trial court utilizes the guidelines to determine the reasonable needs of the child and the ability of the obligor to provide support. Id. “In determining the ... ability of the obligor to provide support, the guideline shall place primary emphasis on the net incomes and earning capacities of the parties, with allowable deviations for unusual needs, extraordinary expenses and other factors, such as the parties’ assets, as warrant special attention.” Id. (emphasis added).
¶ 6 In considering this matter, we emphasize that our analysis must begin with the relevant statutory language contained in the Pennsylvania Domestic Relations Code. Although the term “income” may have a particularized meaning to an accountant who would treat it as wages or earnings from principal, we are not bound by such meanings. Rather, we must look to the statutory definition of the term; all reasoning must begin with that definition.
¶ 7 In the present case, “income” is defined in support actions as follows:
“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 entitlements to money or lump sum awards, without regard to source, including lottery winnings; income tax refunds; insurance compensation or settlements; awards or verdicts; and any form of payment due to and collectible by an individual regardless of source.
23 Pa.C.S.A. § 4302.1
¶ 8 It is thus clear from a cursory reading of the definition that the term includes more than just earnings from *778principal or wages. This Court has held that the above examples of what constitute income are not intended to be an all-inclusive list. Darby v. Darby, 455 Pa.Super. 68, 686 A.2d 1346, 1348 (1996), appeal denied, 548 Pa. 670, 698 A.2d 594 (1997).2 Rather, the list contains examples that may guide a court when determining what constitutes income. Moreover, when determining what is income under this section, we have stated that “actual earnings are not necessarily utilized; courts are required to determine ability to pay from all financial resources” of the parties. Id. See also Calabrese, 682 A.2d at 396 (stating that the definition of income in a support case must “reflect the actual available financial resources of the payor”). A court must consider every aspect of a parent’s financial ability to pay child support, including that parent’s property interests, stocks, and other investments. Blaisure v. Blaisure, 395 Pa.Super. 473, 577 A.2d 640, 642 (1990). See also Babish v. Babish, 361 Pa.Super. 118, 521 A.2d 955, 957 (1987) (stating that a court should recognize the “full nature and extent” of a parent’s property interests and financial resources when determining a support obligation).
¶ 9 Because the money he realized from his inheritance does not come under any of the particularized examples of income enumerated in 23 Pa.C.S.A. section 4302, DeRoss argues that this sum cannot be considered income when computing his child support obligation. DeRoss attacks specific portions of the above definition. First, he maintains that this money, although derived from an inheritance, is not “income from an interest in an estate or trust.” DeRoss argues that the plain meaning of these words from the above definition refers merely to the income derived from any interest in an estate, not from the actual corpus of such an estate or trust. Since DeRoss reinvested the money received by his inheritance in a family home, he argues that he did not receive “income” from the interest in the estate he had received. In other words, DeRoss’s inheritance does not generate earnings in the way that an annuity or bank account would. We agree with DeRoss’s assertion that this clause contained in the definition only pertains to income (whether a monthly payment, a yearly stipend, or however calculated) that a party receives from an estate or trust. Accordingly, we agree that the cited statutory language does not mandate the conclusion that the money received from the sale of DeRoss’s inheritance is income for support purposes. However, this determination is not dispositive of the issue.
¶ 10 DeRoss also contends that the statutory phrase “gains derived from dealings in property” does not apply to render his inheritance income. When he inherited his mother’s home, DeRoss argues that his basis in the property was equal to its current market value. Thus, when the property was sold, DeRoss’s gain would only be whatever he received from the sale over and above his basis in the property. While DeRoss concedes that this gain could be considered to be income, he disputes that the entire portion of the inheritance is income under this part of the definition.
*779¶ 11 DeRoss also argues that he actually realized no gain from the sale of his mother’s residence because he immediately reinvested the money in a new home. Hum-phreys counters with the assertion that DeRoss sold his previous residence, as well as his mother’s residence, and used the money received from both these sales to buy a larger, more expensive home. Thus, Humphreys maintains, DeRoss did receive a gain from the sale of his mother’s home. Although Humphreys’ argument is initially appealing, there is no evidence in the record before this Court to support Hum-phreys’ factual assertions. Thus, we cannot conclude that the money received from DeRoss’s sale of his mother’s home is income based upon this fact. Again, however, this does not end our analysis.
¶ 12 We are guided in our determination by recognizing that the ultimate purpose of a support order is to provide for the best interests and welfare of children from broken homes, and not to punish the payor parent. See Joanne Ross Wilder, PENNSYLVANIA Family Law PRACTICE and Procedure 27 (4 th ed.1998); see also Opie v. Richart, 410 Pa.Super. 52, 598 A.2d 1321, 1322 (1991) (stating that child support orders may not be punitive or confiscatory). Because of a parent’s inescapable duty to provide for the reasonable needs of one’s children to the best of his or her ability, Pennsylvania courts have sometimes required a parent to make sacrifices in order to achieve the support goal. Opie v. Richart, supra; Babish, 521 A.2d at 958 (emphasizing that a parent has the primary obligation to support his children and that he may not diminish his ability to pay child support in order to ensure a more comfortable existence for himself). Our courts have uniformly held that a parent has the obligation to share the benefits of his financial achievements with his children. See, e.g., Melzer v. Witsberger, 505 Pa. 462, 480 A.2d 991 (1984).
¶ 13 The key to determining the legislative intent here is that part of the definition of income described as “other entitlements to money or lump sum awards, without regard to source, including lottery winnings.” 23 Pa.C.S.A. § 4302. In his brief to this Court, DeRoss acknowledges this phrase but claims that it does not apply because the interest in question here is “income from an interest in an estate or trust.” DeRoss’s Brief at 8. We determined above, however, that the money involved here is not income derived from an interest in an estate; it is the interest in the estate itself. We conclude that this portion of the statutory definition is broad enough to include the money received from DeRoss’s inheritance; his inheritance is properly considered an entitlement to money without regard to source.
¶ 14 In reaching this decision, we have also reviewed how other jurisdictions have dealt with the issue of including lump sum gifts or inheritances in the calculation of income available for support purposes. Several of our sister states consider a lump sum inheritance as income available for support, at least when there is a definite sum involved. See Crayton v. Crayton, 944 P.2d 487 (Alaska 1997) (holding that a one-time gift from the payor’s father was includable as income because the court was not dealing with indeterminate payments arriving at some future time; the court must consider the actual resources available to the payor parent); Goldberg v. Goldberg, 698 So.2d 63 (La.App. 4 th Cir.1997) (considering a party’s inheritance when calculating an alimony award because the court must examine the entire financial condition of the parties); Ford v. Ford, 1998 Tenn.App., 1998 WL 730201 LEXIS 703 (Tenn.Ct.App.1998) (holding that money received by inheritance can be considered income when it is regularly distributed; a one-time distribution from a life insurance trust that was received prior to the filing of the support petition, however, was not considered income); Forsythe v. Forsythe, 41 Va. Cir. 82, 1996 WL 1065613 (Cir. Ct. of Fairfax County, Va.1996) (finding that, because of the all-inclusive definition of “income” contained *780in the Virginia Code, a party’s inheritance was properly considered as income for the year in which it was received; the court equated an inheritance with a gift, which was specifically included in the statute). Compare Bryant v. Bryant, 235 A.D.2d 116, 663 N.Y.S.2d 401 (N.Y.App.Div.1997) (including the full value of a party’s inheritance in the calculation of “additional child support,” but not in the calculation of a basic child support obligation).
¶ 15 Other states have reached a contrary conclusion, choosing only to include any earnings that an inheritance may generate, i.e., interest payments, when calculating income. See Halter v. Halter, 60 Ark.App. 189, 959 S.W.2d 761 (1998) (under statute which refers to the federal income tax definition of income, only earnings that could be generated from an inheritance are considered when calculating support); Armstrong v. Armstrong, 831 P.2d 501 (Colo.Ct.App.1992) (imputing interest income on an inheritance and including this interest in the calculation of a support obligation); Stula v. Stula, 1998 WL 457694, 1998 Conn.Super. LEXIS 2132 (Conn.Super.Ct.1998) (holding that “income” includes only the income generated by an inheritance when calculating a support obligation); Connell v. Connell, 313 N.J.Super. 426, 712 A.2d 1266 (1998) (holding that, in making a support calculation, a court must consider a party’s inheritance, whether the inheritance is producing income for the party involved, and the best interests of the children; even though the father had reinvested the totality of his inheritance in real estate that was not providing him with income, the court could impute interest earnings based upon the peculiar facts of the case); Gainey v. Gainey, 89 Wash.App. 269, 948 P.2d 865 (1997) (only the interest earned on an inheritance is included in a support calculation).
¶ 16 After considering the purposes behind the Pennsylvania statute, we agree with those of our sister states which hold that the lump sum receipt of an inheritance, part of the overall financial picture of the party owing support, must be considered as income to that party when calculating the support obligation. Accordingly, in the present case, we conclude that, although the money DeRoss received from his inheritance does not neatly fit into the delineated examples contained in the statutory definition of income, the trial court correctly held that this money was available for his daughter’s support. This sum, in essence, represents a windfall to DeRoss in the same manner as if DeRoss had won the lottery. Whether DeRoss continues to hold the money from his inheritance in a bank account or he reinvests the inheritance in a new home is immaterial.3 Cf. Babish, 521 A.2d at 958 (remanding a support action where the trial court failed to include a lump sum workers’ compensation award as income available for support, stating, “It does not matter that [Father] depleted the substantial award” by . using the money to purchase a home for his new family). Thus, the trial court properly included DeRoss’s inheritance in the calculations for determining his support obligation.
¶ 17 DeRoss next claims that the order directing attachment of his workers’ compensation benefits is in excess of the mandatory permissible amounts under the Consumer Credit Protection Act (the Act), 15 U.S.C.A. section 1601, et seq. Specifically, DeRoss argues that, where the party owing support has a second family and is in arrears on existing support orders, the Act only permits attachment of a maximum of fifty-five pércent of such party’s earnings. DeRoss’s income consists of $858.00 in monthly workers’ compensation benefits, although DeRoss has a continuing *781obligation to pay his workers’ compensation attorney twenty percent of this amount. In addition, DeRoss receives $355.00 per month in social security disability benefits. Thus, DeRoss’s disposable income is $1,213.00 per month. The maximum amount attachable under the Act ($1,213 x 55%) is, therefore, $667.15 per month. The attachment order under review directs attachment of $692.00 per month. DeRoss urges this Court to correct this violation of the Act.
¶ 18 In its opinion prepared pursuant to Pa.R.A.P.1925(a), the trial court explains that DeRoss had filed an objection based on an alleged violation of the Act prior to the hearing de novo. Trial Court Opinion, 7/8/98, at 2. The trial court denied DeRoss’s request to hold the attachment in abeyance, and indicated that it would address the issue at the de novo hearing. Id. However, the court states, “When the de-novo [sic] hearing was held several months later, [DeRoss] never raised this issue at all, and we did not address the issue at all. Accordingly, we believe that it has been waived.” Id.
¶ 19 We have no evidence of record to contradict the trial court’s assertion that DeRoss abandoned this issue by failing to raise it at the hearing. DeRoss has failed to provide this Court with a transcript of the hearing, as is his duty to do. See Pa.R.A.P.1911(a), (d). See also Cade v. McDanel, 451 Pa.Super. 368, 679 A.2d 1266, 1268-69 (1996) (holding that appellant’s failure to ensure that a complete certified record is transmitted to the Superior Court, including transcripts of the proceedings below, constitutes a waiver of the issues sought to be examined); Smith v. Smith, 431 Pa.Super. 588, 637 A.2d 622 (1993) (same). Accordingly, we find no abuse of discretion in the trial court’s conclusion that the issue has been waived.
¶ 20 Order affirmed.
¶ 21 JOYCE, J. files a concurring opinion.
¶ 22 EAKIN, J. files a dissenting opinion in which DEL SOLE, MUSMANNO and ORIE MELVIN, JJ. join.
¶ 23 McEWEN, President Judge files a concurring Statement.

. We note that the Pennsylvania Supreme Court has amended the Support Guidelines, effective April 1, 1999. The definition of monthly gross income contained in the guidelines is substantially similar to the definition contained in 23 Pa.C.S.A. section 4302. See Pa.R.C.P.1910.16-2(a). Pertinent to our discussion infra, we note that Rule 1910.16— 2(a)(8) includes as monthly gross income “other entitlements to money or lump sum awards, without regard to source, including lottery winnings, income tax refunds, insurance compensation or settlements; awards and verdicts; and any form of payment due to and collectible by an individual regardless of source.” Moreover, the explanatory note following this subsection states that a trial court has the discretion to determine the most appropriate method for imputing lump-sum awards as income for support purposes, whether by annualizing the award or averaging it over a period of time, all depending upon the circumstances of the case. Thus, this note provides additional support for the trial court's actions in the present case. See Pa.R.C.P. 129(e) ("A note to a rule or an explanatory comment is not a part of the rule but may be used in construing the rule.”). See also Rieser v. Glukowsky, 435 Pa.Super. 530, 646 A.2d 1221 (1994) (explaining that, while the explanatory notes following rules of procedure are not binding precedent, they may aid in interpreting the meaning of the rules).

. The Darby court emphasized the words "including, but not limited to” contained in the above definition. Using principles of statutory construction which require that all the words of a statute be given their plain meaning whenever possible, we concluded that "the list plainly is not intended to be all-inclusive.” 686 A.2d at 1348. In his brief to this Court, DeRoss contends that the first semi-colon in the definition confines this phrase to modification of only those-first categories of income; i.e., wages, salaries and similar items. We find that limiting this clause "including, but not limited to” to only this first set of examples contained in the definition would lead to an absurd result contrary to the clear intent of the legislature. Thus, we refuse to follow DeRoss's interpretation of this phrase. See 1 Pa.C.S.A. § 1922(1) (stating the presumption that "the General Assembly does not intend a result that is absurd, impossible of execution or unreasonable”).

. Although the Dissenting Opinion states, “One must conclude [that DeRoss] will have to sell his new house to comply with the last months of the support order,” Op. at 785, we note that there are other less drastic alternatives available. Should the support order create a temporary problem with DeRoss's cash flow, he could, just as one example, use his house as security for a loan.