Ark. Office of Child Support Enforcement v. Hearst
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Cite as 2009 Ark. 599
SUPREME COURT OF ARKANSAS
No. 09-135
ARKANSAS OFFICE OF CHILD
SUPPORT ENFORCEMENT
APPELLANT,
VS.
JASON S. HEARST
APPELLEES,
Opinion Delivered
December 3, 2009
APPEAL FROM THE FAULKNER
COUNTY CIRCUIT COURT,
NO. E-2000-27
HON. MICHAEL A. MAGGIO, JUDGE
REVERSED AND REMANDED.
ANNABELLE CLINTON IMBER, Associate Justice
The Office of Child Support Enforcement (OCSE) appeals from an order modifying
child support payable to Angela Hearst, the custodial parent of Appellee Jason Hearst’s two
minor children. Specifically, OCSE challenges the Faulkner County Circuit Court’s ruling
that Social Security Disability (SSD) benefits paid directly to Appellee’s two children as a
result of his disability should not be considered income under Administrative Order No. 10.
The Arkansas Court of Appeals certified the case to this court as an issue of first impression,
a significant issue needing clarification or development of the law, and an issue of substantial
public interest. Thus, our jurisdiction is pursuant to Ark. R. Sup. Ct. 1-2(b)(1),(4),(5) (2009).
Cite as 2009 Ark. 599
For the reasons we set forth below, we reverse the order of the circuit court and remand the
case for proceedings consistent with this opinion.
OCSE filed a motion on behalf of Appellee’s ex-wife Angela Hearst to modify child
support. In the motion, OCSE asked the court to modify support based on the fact that
Appellee was now drawing monthly Social Security benefits in the amount of $1362. In
addition, OCSE was seeking to collect an arrearage in the sum of $6642 for past-due child
support owed by Appellee. Appellee’s two children each received $232 in Social Security
Disability benefits, or a total of $464, as a result of their father’s disability. These payments
went directly to Angela Hearst, the custodial parent. OCSE asked the court to consider the
disability benefits paid to the children as income attributable to Appellee. Based on income
totaling $1826 (the sum of $1362 and 464), Appellee’s monthly child support payment,
according to the child-support chart, would be $574. Appellee would then be credited with
the amount already paid to the children by Social Security, $464, resulting in a balance of
$110 per month in additional child support owed by Appellee.
In support of its requested increase in child support, OCSE relied upon Section III(c)
of Administrative Order No. 10, which provides that the “court should consider the amount
of any separate awards made to the disability recipient’s spouse and children on account of the
payor’s disability.” Administrative Orders of the Supreme Court, No. 10, § III(c) (2009).
Appellee, on the other hand, asserted that the benefits paid to his children went directly to
the custodial parent and that, if he did not have children, no one would receive that extra
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sum. The circuit court ruled that the benefits paid to the dependent children would not be
considered as income attributable to Appellee, reasoning that the sum of $464 (a) was paid
directly to the children, (b) never passed through Appellee’s hands, and (c) never went
through Appellee’s bank. Thus, the court determined Appellee’s income without considering
the additional benefits totaling $464. The court then set the monthly child support payment
at $414, and credited the $464 in SSD benefits paid to the children against Appellee’s monthly
child-support obligation, thereby satisfying the obligation. Appellee also requested a deviation
from the child-support chart, but the circuit court denied that request. OCSE now appeals
from the circuit court’s order modifying child support.
For its only point on appeal, OCSE contends that the Social Security Disability benefits
paid to Appellee’s dependent children should be considered as part of his income for the
purpose of determining child support. According to OCSE, the amount of the separate awards
made to Appellee’s children on account of his disability clearly fall under Section III(c) of
Administrative Order No. 10. Appellee counters that the separate awards are paid directly to
the custodial parent; therefore, they do not contribute to his household income and should
not be considered as such. He further suggests that because Section II of Administrative Order
No. 10 provides for the deduction of certain expenditures, based on the fact that the payor
has no discretion over payment of those amounts, the court should follow suit as he has no
discretion over the separate awards that are not made available to him for his use.
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The instant appeal raises an issue of first impression: whether the term “income,” as
defined by this court’s Administrative Order No. 10, includes Social Security Disability
benefits paid directly to a noncustodial parent’s children as a result of that parent’s disability.
In an appeal from a child support order this court reviews the case de novo on the record and
will not reverse a finding of fact by the trial court unless it is clearly erroneous. McWhorter v.
McWhorter, 346 Ark. 475, 58 S.W.3d 840 (2001). However, a trial court’s conclusion of law
is given no deference on appeal. Ward v. Doss, 361 Ark. 153, 205 S.W.3d 767 (2005). In
interpreting administrative orders, we have held that because these orders are, in essence, rules
promulgated by the court, they are to be interpreted using the same canons of construction
that are used to interpret statutes. Montgomery v. Bolton, 349 Ark. 460, 79 S.W.3d 354 (2002).
The first rule in considering the meaning and effect of a statute is to construe it just as it reads,
giving the words their ordinary and usually accepted meaning in common language. Id. When
the language of a statute is plain and unambiguous, there is no need to resort to rules of
statutory construction. Id.
Section II of Administrative Order No. 10 sets forth the following definition of
“income” for purposes of determining child support:
Income means any form of payment, periodic or otherwise, due to an
individual, regardless of source, including wages, salaries, commissions, bonuses,
workers' compensation, disability, payments pursuant to a pension or retirement
program, and interest less proper deductions for:
1. Federal and state income tax;
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2. Withholding for Social Security (FICA), Medicare, and railroad retirement;
3. Medical insurance paid for dependent children; and
4. Presently paid support for other dependents by court order, regardless of the
date of entry of the order or orders.
Administrative Order of the Supreme Court, No. 10, § II (2009). Section III of
Administrative Order No. 10 further identifies benefits that should be considered as
“income” for disability recipients:
c. Nonsalaried Payors. For Social Security Disability recipients, the court
should consider the amount of any separate awards made to the disability
recipient's spouse and children on account of the payor's disability. SSI benefits
shall not be considered as income.
For Veteran's Administration disability recipients, Workers' Compensation
disability recipients, and Unemployment Compensation recipients, the court
shall consider those benefits as income.
Administrative Orders of the Supreme Court, No. 10, § III(c) (2009).1 This Court has stated
that the term “income” is “intentionally broad and designed to encompass the widest range
of sources consistent with the State’s policy to interpret ‘income’ broadly for the benefit of
the child.” Evans v. Tillery, 361 Ark. 63, 70, 204 S.W.3d 547, 552 (2005) (citing Ford v. Ford,
347 Ark. 485, 65 S.W.3d 432 (2002)).
1
Despite the dissent’s assertion to the contrary, Section III(c) of Administrative Order No.
10 expressly states what amounts should be considered as “income” for nonsalaried payors,
such as those who receive disability or unemployment benefits, military personnel,
commission workers, and self-employed payors.
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In distinguishing federal Supplemental Security Income (SSI) benefits, which may not
be considered as income for child support purposes, from Social Security Disability (SSD)
benefits, we noted in Davis v. Office of Child Support Enforcement, 341 Ark 349, 20 S.W.3d 273
(2000), that
SSI benefits are not remuneration for any past or present employment. No
premiums, deposits, or other payments have been paid to qualify for them. Put
simply, SSI is federal welfare for the poorest of the nation's citizens.
....
SSI and SSD differ substantially. Under SSD, the applicant seeks “insurance”
benefits based upon payments withheld from his paychecks. To qualify, the
applicant must have paid into the program at least five out of the prior ten
years, or twenty out of forty quarters. SSI recipients, however, either never
paid this “premium” or never paid enough into the system to qualify for SSD.
In other words, the benefits an SSI recipient receives are not based on how
much he paid into the system, but instead how much he or she needs to
maintain “a Federal guaranteed minimum income level for aged, blind, and
disabled persons.”
Id. at 356, 20 S.W.3d at 277. See also Davie v. Office of Child Support Enforcement, 349
Ark. 187, 76 S.W.3d 873 (2002).
Other jurisdictions have addressed the issue of whether Social Security Disability
benefits paid to a noncustodial parent’s children should be considered income for the purpose
of determining child support. In ruling that such benefits should be considered as income, the
Alaska Supreme Court in Miller v. Miller, 890 P.2d 574 (Alaska 1995), focused on the fact that
SSD insurance benefits are based upon payments withheld from the recipient’s paychecks. Id.
The Miller court reasoned that, given the broad definition of income applied by the state, and
to avoid any possible “windfall” to the payor, it was necessary to include this amount as
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income. Id. Furthermore, the Alaska Supreme Court stated that because the benefits were
essentially earnings based on the father’s past contributions to Social Security and, therefore,
credited as child support payments, by parallel reasoning the payments should be considered
as income for purposes of calculating child support. Id.
Similarly, in In the Matter of Angley-Cook, 151 N.H. 257, 855 A.2d 431 (2004), the
New Hampshire Supreme Court held that Social Security retirement dependency benefits
constitute income for child support purposes. According to the Angley-Cook court, New
Hampshire’s child-support statute broadly defines the term “gross income” as “all income from
any source,” and explicitly lists social security benefits in the items that are to be included in
income. Id. at 260, 855 A.2d at 435. The New Hampshire Supreme Court distinguished
Social Security benefits from other public programs and stated that “unlike welfare and other
forms of public assistance, social security benefits represent contributions that a worker has
made throughout the course of employment . . . .” Id. (citing Miller v. Miller, 890 P.2d 574
(Alaska 1995)).
The Massachusetts Supreme Judicial Court has also held that Social Security Disability
Income (SSDI) dependency benefits should be included in the income of a noncustodial
parent:
The fairest approach for calculating the credit here is to treat the SSDI
dependency benefits as if they were first paid directly to the noncustodial
parent, who then pays that same amount to the custodial parent to satisfy some
part of the support obligation. Specifically, the amount of the SSDI dependency
benefits should be included in the income of the noncustodial parent and the
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guidelines should then be applied to that amount. As in any other
determination of a proper support obligation, the judge may adjust the amount
as calculated by this approach on making findings that such amount is unjust or
inappropriate . . . The noncustodial parent is then allowed a credit equal to the
amount of the SSDI dependency benefits. The net amount of the noncustodial
parent's support obligation thus is simply the difference between the support
amount calculated above (or as adjusted by the judge) minus the amount of the
credit.
Rosenberg v. Merida, 428 Mass. 182, 188, 697 N.E.2d 987, 991 (1998). See also, In re Marriage
of Briscoe, 949 P.2d 1388 (Wash. 1998) (SSD dependent benefits to be offset against childsupport obligation and to be included in calculating the father’s income); Jenkins v. Jenkins,
704 A.2d 231 (Conn. 1998) (noncustodial father allowed an offset against child support for
dependency benefits paid to children but required to include these amounts as income for
purposes of determining the amount of his child-support obligation under the guidelines); In
re Marriage of Hilmo, 623 N.W.2d 809 (Iowa, 2001) (father’s income would include SSD
dependent benefits paid to children, as well as an offset credit toward his child-support
obligation).2 In sum, in the majority of jurisdictions that have addressed the issue, SSD
dependent benefits are treated as income to the noncustodial parent and then deducted as a
credit against his or her child-support obligation.
As early as 1962, this court determined that dependent benefits paid to a child after his
father became entitled to Social Security benefits upon retirement should be credited against
the father’s child-support obligation. Cash v. Cash, 234 Ark. 603, 353 S.W.2d 348 (1962). In
We note that SSD benefits paid to dependent children are neither included as income
nor credited against the noncustodial parent’s child-support obligation in Maryland and
New York. See Drummond v. State, 714 A.2d 163 (Md. 1998); Graby v. Graby, 664 N.E.2d
488 (N.Y.1996) (based on a “combined parental income” statutory model).
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making that determination, we stated that the Social Security payments to the dependent son
were earned in part by the father and were not altogether a gift from the federal government.
Id. In other words, such benefits were not gratuitous but earned.
We have also considered whether to allow a credit for a lump-sum Social Security
payment to an adult child. In Grays v. Arkansas Office of Child Support Enforcement, 375 Ark.
38, 289 S.W.3d 12 (2008), this court held that equitable considerations were applicable in
determining whether a noncustodial parent should receive a credit against past-due child
support owed to the mother by the payment of SSD benefits to his child. Id. In that case, our
court refused to credit any of the lump-sum payment against the child-support arrearage. Id.
Because child-support cases necessarily involve the consideration of equitable factors in an
effort to reach a fair and just result, we reiterated that there must be flexibility in determining
the level of support needed by the dependents. Id. Accordingly, “we have not foreclosed the
possibility that Social Security benefits may affect a noncustodial parent’s child support
obligation.” Id. at 44, 289 S.W.3d at 17. See Office of Child Support Enforcement v. Harris, 87
Ark. App. 59, 185 S.W.3d 120 (2004) (allowing a credit against father’s accrued child-support
arrearages as a result of a lump-sum social security disability payment to his child).
In the instant case, Appellant OCSE urges this Court to recognize Social Security
disability benefits paid to the dependent children of noncustodial parents as income for the
purpose of determining child support. Based on the plain and unambiguous language of
Administrative Order No.10, we hold that these dependent benefits are income for the
purpose of determining child support. Section II of the order states that income “means any
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form of payment . . . due to an individual, regardless of source, including . . . disability.”
Administrative Orders of the Supreme Court, No. 10, § II (2009). With regard to those
individuals who receive disability benefits, Section III of Administrative Order No. 10
expressly provides that “the court should consider the amount of any separate awards made
to the disability recipient’s spouse and children on account of payor’s disability.” Id. at § III.3
While disability benefits paid to dependent children are to be considered income, the order
makes clear that SSI benefits “shall not be considered as income.” Id. To construe
Administrative Order No. 10 so as to exclude SSD dependent payments from “income”
would be contrary to the plain language of the order. It would also be contrary to our case
law interpreting the order: the definition of “income” is intentionally broad and designed to
encompass the widest range of sources consistent with this State’s policy to interpret “income”
broadly for the benefit of the child. Evans v. Tillery, 361 Ark. 63, 204 S.W.3d 547 (2005);
Ford v. Ford, 347 Ark. 485, 65 S.W.3d 432 (2002); McWhorter v. McWhorter, 346 Ark. 475, 58
S.W.3d 840 (2001); Davis v. Office of Child Support Enforcement, 341 Ark 349, 20 S.W.3d 273
(2000).
Although not authoritative, the rationale adopted by most of our sister states is
persuasive. We recognize, as did the Alaska Supreme Court in Miller v. Miller, supra, that SSD
dependent payments are the direct result of the earnings and contributions by the payor. See
Cash v. Cash, supra. Social Security disability payments to the payor and his or her dependents
We reject Appellee’s argument that the phrase “disability recipient’s . . . children” refers only
to children living in the payor’s household. There is nothing within Section III that suggests
such a limitation.
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represent contributions made by the worker throughout the course of employment.
Furthermore, our state’s policy of defining “income,” so as to encompass as many sources as
possible is similar to that of New Hampshire. See In the Matter of Angley-Cook, supra.
One final point is the role that equity plays in determining the amount of child
support. Our court recently refused to credit a lump-sum disability payment made to an adult
child against a child-support arrearage. Grays v. Arkansas Office of Child Support Enforcement,
375 Ark. 38, 289 S.W.3d 12 (2008). However, we stated that our determination in the Grays
case should not be construed as a bright-line rule; rather, such determinations should always
include the consideration of equitable factors. Id. We note that the circuit court in the instant
case declined to consider Social Security disability benefits paid to the Appellee’s children as
income. In view of that ruling, the court summarily denied Appellee’s request for a deviation
from the child-support chart. For the reasons set forth above, we reverse the circuit court’s
order that erroneously excluded the SSD dependent benefits from “income.” The case is
remanded in order for the court to (a) determine Appellee’s income in accordance with the
holding herein, and (b) set the appropriate amount of child support. We reiterate that while
a trial court must reference the child-support chart, and presume that the amount specified
in the chart is reasonable, that presumption is rebuttable. Evans v. Tillery, 361 Ark. 63, 204
S.W.3d 547 (2005). The presumption that the chart is correct may be overcome “if the trial
court provides specific written findings that the chart amount is unjust or inappropriate.” Id.
at 70, 204 S.W.3d at 552.
Reversed and remanded.
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HANNAH, C.J., CORBIN, AND GUNTER, J. J., dissent.
HANNAH, C.J., dissenting. The majority states the issue on appeal is “whether the term
‘income,’ as defined by this court’s Administrative Order No. 10, includes Social Security
Disability benefits paid directly to a non custodial parent’s children as a result of that parent’s
disability.” However, the majority fails to rely on the plain language of Administrative Order
No. 10. Instead, the majority inexplicably turns to foreign jurisdiction cases under dissimilar
rules to justify holding that the payments constitute income when Administrative Order No.
10 clearly excludes the payments from income.
Administrative Order No. 10 is a rule promulgated by our court and is construed using
the same cannons of construction that are used to interpret statutes. Montgomery v. Bolton, 349
Ark. 460, 465, 75 S.W.3d 354, 357 (2002). The first rule in considering the meaning and
effect of a statute is to construe it just as it reads, giving the words their ordinary and usually
accepted meaning in common language. Id. 75 S.W.3d at 357. We need not consider any
further rules of construction to resolve this case because the plain language of the Order
declares the payments are not income.
Section II of Administrative Order No. 10 defines income and declares that income
includes all funds “due to an individual . . . regardless of source.” Social Security Disability
benefits paid to dependents that are never received or controlled by the payor of child support
cannot constitute income because they are not funds due to the payor. Our analysis on
whether the payments constitute income should end here.
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Section III(c) of Administrative Order 10 does declare that SSI benefits are not to be
considered as income, that veteran’s disability, workers’ Compensation benefits, and that
unemployment compensation benefits are considered as income. However, where the
majority errs is in concluding that Section III(c) declares Social Security Disability payments
to a recipient’s spouse and children is income. It does not. Section III(c) provides in
pertinent part that “the court should consider the amount of separate awards.” The trial court
should consider the payments in calculating support. The majority’s conclusion that Section
III defines Social Security Disability awards to a recipient’s spouse or children as income is in
error.
Social Security Disability payments received by dependents are to be considered by the
trial court in determining the proper amount of support. Those payments may raise or lower
the payment by the payor if the trial court deviates from the amount set by the chart4 in
Administrative Order 10, but they do not constitute income under any possible analysis.
“Like public assistance, Social Security disability dependents’ benefits are an entitlement
granted by Congress at no cost to the disabled parent . . . Social Security payments to
dependent children do not reduce the disabled parent’s benefits or in any way increase that
parent’s financial obligations.” Graby v. Graby, 664 N.E.2d 488, 491 (N.Y. 1996) (citing
Stultz v. Stultz, 659 N.E.2d 125, 127 (Ind. 1995) and Sergi v. Sergi, 395 N.Y.S.2d 759, 759
(N.Y. App. Div. 1977).
By abandoning the clear definition of income set out in
4
“The trial court is required to reference to the child-support chart, and the amount specified in the chart
is presumed to be reasonable.” Akins v. Mofield, 355 Ark. 215, 222, 132 S.W.3d 760, 763 (2003).
“However, the presumption that the chart is correct may be overcome if the trial court provides specific
written findings that the chart amount is unjust or inappropriate.” Id., ____ S.W.3d at ____.
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Administrative Order No. 10, the majority errantly changes the law on income. This holding
introduces confusion where there was none before, and makes the trial judge’s task of
consistently applying the law much more difficult. For the foregoing reasons, I dissent.
CORBIN and GUNTER, JJ., join.
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