CALLIE L. KEEGAN,
Plaintiff-Respondent,
v.
THOMAS J. KEEGAN,
Defendant-Appellant.
________________________________
Submitted October 25, 1999 - Decided December
8, 1999
Before Judges Keefe, Rodriguez and Lintner.
On appeal from the Superior Court of New
Jersey, Chancery Division, Family Part,
Mercer County.
Catherine Ross, attorney for appellant
(Deborah A. Rose, on the brief).
Ulrichsen, Amarel & Eory, attorneys for
respondent (Dale E. Console, on the brief).
The opinion of the court was delivered by
LINTNER, J.S.C. (temporarily assigned).
On March 16, 1994, plaintiff (Ms. Keegan) and defendant (Mr.
Keegan) were divorced by final judgment following a trial. In
April 1998, Mr. Keegan filed a notice of motion for emancipation
and modification of alimony and child support. Specifically, Mr.
Keegan sought to: (1) emancipate their oldest daughter (Jennifer)
who graduated from college in May 1998; (2) emancipate their
second daughter (Lea) who ended her full-time college status and
began working on a full-time basis; and (3) modify his child
support obligation for their youngest daughter (Michele) who was
in college at the time.
In response, Ms. Keegan cross-moved seeking: (1) collection
of arrears for Jennifer's college expenses; (2) retroactive
contribution for Lea's college expenses and denial of her
emancipation; and (3) contribution for college expenses
associated with Michele.
The central issue raised by this appeal is whether N.J.S.A.
2A:17-56.23a, applies to prevent retroactive increases in child
support. We conclude the anti-retroactive support statute's
applicability is limited to prevent retroactive modifications
decreasing or vacating orders allocated for child support.
On June 3, 1998, after conducting a hearing on cross-motions, the trial judge issued an order that: (1) emancipated
Jennifer, retroactive to May 29, 1998; (2) denied emancipation
for Lea; (3) modified and reduced child support retroactive to
May 29, 1998; (4) ordered Mr. Keegan to pay college expenses of
$2,050.00 for Jennifer, $1,291.67 for Lea, and $7,279.58 for
Michele; and (5) ordered Mr. Keegan to pay fifty-eight percent
and Ms. Keegan to pay forty-two percent of any remaining college
expenses for the two daughters not yet emancipated. On or about
June 16, 1998, Mr. Keegan filed a motion for reconsideration.
On July 17, 1998, Judge Williams denied Mr. Keegan's motion for
reconsideration and issued an opinion letter setting forth the
court's reasoning.
After the filing of the notice of appeal, a consent order
was issued rectifying a miscalculation, thereby correcting the
amount Mr. Keegan was to pay for Michele's college expenses from
$7,279.58 to $1,365.32.See footnote 1
Mr. Keegan appeals from the trial court's order denying his
motion to emancipate his daughter Lea and ordering him to
reimburse Ms. Keegan for college expenses incurred for Lea and
Michele, raising the following points: (1) the trial court erred
by retroactively modifying child support by ordering defendant to
reimburse plaintiff for college expenses incurred; (2) in the
alternative, the trial court erred by being inconsistent in
retroactively increasing the college expense aspect of the child
support obligation without retroactively reducing the
corresponding direct support, since the law of the case
inextricably linked both aspects of child support. (3) The trial
court erred by failing to emancipate Lea during the period that
she was not attending college on a full-time basis and reporting
on her income tax returns that she was independent.
The final judgment of divorce granted the parties joint
legal custody of the children and stipulated that Mr. Keegan was
to pay "child support in the amount of $305 per week" for the
parties' three daughters. It further provided that Mr. Keegan
pay seventy percent of Jennifer's college expenses, which Ms.
Keegan estimated "to be approximately $70 per month for interest
on loans, plus miscellaneous expenses of approximately $1,000 per
year." The final judgment was silent as to any potential
financial obligations Mr. Keegan might have for Lea's and
Michele's college expenses. By ordering him to pay fifty-eight
percent of the college expenses already incurred for both Lea and
Michele, Mr. Keegan argues that the trial court erred, as its
order is contrary to the anti-retroactive provisions of N.J.S.A.
2A:17-56.23a, which provides in pertinent part:
No payment or installment of an order for
child support, or those portions of an order
which are allocated for child support . . .
shall be retroactively modified by the court
except with respect to the period during
which there is a pending application for
modification, but only from the date the
notice of motion was mailed either directly
or through the appropriate agent.
Mr. Keegan urges that fundamental notions of due process and
fairness require timely notice before establishing or changing an
obligation for support, which includes by its nature the payment
of college expenses. Specifically, Mr. Keegan argues that the
legislative purpose of the statute was to provide parents with
the opportunity to budget their finances to prevent being faced
with the sudden obligation to pay arrearages. He also argues
that courts should comply with the anti-retroactive statute for
all forms of child support modifications, including college
education expenses.
Mr. Keegan misconstrues the legislative purpose of the anti-retroactive statute. The statute was designed to comply with
the Omnibus Budget Reconciliation Act of 1986 . . . ."See footnote 2 Bowens
v. Bowens,
286 N.J. Super. 70, 71 (App. Div. 1995). The federal
law conditions compliance "with various federal standards
governing child support" in order to receive "federal funding for
collection of child support arrearages." Ibid. The statute was
intended "to improve effectiveness of child support enforcement."
42 U.S.C.A.
§666. In part, the federal statute prohibits the
retroactive modification of "any payment or installment of
support under any child support order, . . . except that such
procedures may permit modification with respect to any period
during which there is pending a petition for modification . . . ."
42 U.S.C.A.
§666(a)(9)(C). Prior to the enactment of N.J.S.A.
2A:17-56.23a, New Jersey adhered to the "practice where
retroactive modification of support and vacation of arrearages on
equitable principles were long permitted . . . ." Bowens, supra,
286 N.J. Super. at 72 (citation omitted)(emphasis added).
Senators Bradley and Long introduced the Interstate Child
Support Enforcement Act, Senate Bill 2404, which added subsection
(a)(9)(A-C) to
42 U.S.C.A.
§666 to prohibit the retroactive
modification of child support arrearages. 132 CONG. REC. S5303-04
(daily ed. May 5, 1986). There were significant loopholes in the
Child Support Enforcement Amendments of 1984, such that
"[r]etroactive modification of interstate child support orders
poses serious problems in many States."See footnote 3 Ibid. In explaining
the problem sought to be remedied Senator Bradley said:
What we are seeking to prevent is the practice
of a noncustodial parent moving to another
State, allowing a substantial debt to his or
her child to pile up, and assuming that there
will be a retroactive modification of the
original order that substantially reduces or
totally dismisses the debt . . . . If a
parent's circumstances change, . . . this
legislation will require that the noncustodial
parent officially notify the custodial parent
and the court . . . .
. . . .
Debts that accumulate to children must be
treated with the highest regard. It should not
be possible to evade a debt to one's child
simply by moving from State to State.
[Ibid.]
Thus, the purpose of the statute was to remedy the loopholes
of interstate child support enforcement laws in order to benefit
children, not to eliminate any perceived unfairness as suggested
by Mr. Keegan. Nothing in the legislative history suggests that
the law was enacted to protect "parents" from retroactive
modifications increasing support obligations where equitable. See
Lanza v. Lanza,
268 N.J. Super. 603, 607 (Ch. Div. 1993)(ordering
a retroactive increase in defendant's child support to reflect
substantial increase in one year's earnings due to increased
commissions). Accordingly, we find that the trial court's order
requiring Mr. Keegan to reimburse Ms. Keegan $1,291.67 for Lea's
college expensesSee footnote 4 and $1,307 for Michele's first year at
American University is not contrary to the anti-retroactive
provisions of
N.J.S.A. 2A:17-56.23a and Mr. Keegan's contention that he should
have received a corresponding credit reducing his previous
support payments, by an amount equal to his obligation to pay
college expenses already incurred, is without merit.
We also agree with Judge Williams's determination not to
emancipate Lea for the period of time that she was a full-time
employee on hiatus from college. At the time of the motion in
June 1998, Lea was twenty years old. She had terminated her
full-time status as a college student at Beaver College in
December 1996, after her third semester. Her cumulative grade
point average at the time she left school was 2.36. Lea returned
home to live with Ms. Keegan. Shortly thereafter, Lea was
employed with a temporary agency on a full-time basis from
January 21, 1997, through June 3, 1997. She then obtained full-time employment with Corestates Bank from June 16, 1997, through
June 13, 1998. Her annualized salary as evidenced by her 1997 W2
form was approximately $20,000. On her 1997 tax return, Lea
indicated that neither parent could claim her for purposes of
their returns.
The trial court considered that Lea's employment with
Corestates was going to terminate in June 1998, due to a
corporate reorganization resulting from the bank's merger with
First Union. During this time, Lea was attending Mercer County
Community College on a part-time basis. Lea then planned to
matriculate at Mercer County on a full-time basis in pursuit of
completing the school's Physical Therapist Assistant Program.
Addressing Lea's status, Judge Williams noted that courts today
hold that "a brief hiatus between high school and college
is common place," such that "a child's right to parental
contribution to college should not be summarily determined."
Judge Williams explained that this holds true for children who
take a brief hiatus from educational pursuits as well. Judge
Williams ultimately denied Mr. Keegan's motion to declare Lea
emancipated because Ms. Keegan presented evidence which
indicates that Lea has not moved beyond the sphere of influence
of her parents." We agree with Judge Williams's application of
the facts of Mr. Keegan's emancipation claim for Lea to the
factors enumerated by the Supreme Court in Newburgh v. Arrigo,
88 N.J. 529 (1982).
Finally, Mr. Keegan argues that the trial court should have
emancipated Lea during the period of time that she was working
and changed her status to that of unemancipated upon return to
school. However, as pointed out by Ms. Keegan, Mr. Keegan's
motion for emancipation did not seek emancipation effective from
the date Lea obtained full-time employment, but simply sought
emancipation. Importantly, Mr. Keegan did not raise the issue of
retroactively emancipating Lea as of December 1996, until he
filed his motion for reconsideration of the court's June 3, 1998,
order. "When a declaration of emancipation is entered, all a
judge has before him are the facts as they exist at that time."
Sakovits v. Sakovits,
178 N.J. Super. 623, 631 (Ch. Div. 1981).
Ms. Keegan's cross-motion seeking to continue Lea's unemancipated
status, given the termination of her employment and intention to
become a full-time student, essentially accomplishes what Mr.
Keegan sought by his motion for reconsideration, i.e., a
declaration that Lea be considered unemancipated as of the time
her status changes from full-time employee to full-time student.
We therefore agree with Judge Williams's denial of Mr. Keegan's
motion for reconsideration.
Affirmed.
Footnote: 1 The consent order renders moot the issue raised on appeal concerning the trial court's miscalculation of Mr. Keegan's contribution to Michele's college expenses. Footnote: 2P.L. 99-509, 100 Stat. 1874 to 2078, codified at 42 U.S.C.A. §666(a)(9)(C). Footnote: 3 Senator Bradley noted that although New Jersey's "interstate child support cases" comprise "only 30 percent of the caseload . . . these interstate cases comprise 70 percent of the complaints about child support enforcement." 132 CONG. REC. S5303-04 (daily ed. May 5, 1986). The Senator cited a specific example where debts of over $4,000 for a child in New Jersey was "reduced to $400 by other States." Ibid. Footnote: 4 This represents Mr. Keegan's share of Lea's expenses at Beaver College only. The court did not hold him responsible for Lea's expenses at Mercer County Community College because she was employed on a full-time basis, while attending Mercer County part-time.