PASCALE V. PASCALE
Case Date: 07/10/1995
Docket No: SYLLABUS
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(This syllabus is not part of the opinion of the Court. It has been prepared by the Office of the Clerk for
the convenience of the reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not have been summarized).
Argued February 14, 1995 -- Decided July 10, 1995
GARIBALDI, J., writing for a unanimous Court.
Debra and James Pascale were married in 1977. They have three children. On October 28, 1990,
Debra filed a complaint for divorce against James. On March 19, 1991, the trial court, on an interim basis,
ordered James to pay sixty percent of all shelter, transportation, and other costs for the support of the
children, and allocated other costs between the parties. On September 23, 1991, another trial court issued an
order granting joint custody of the children, designating Debra as the "residential custodial parent," and
setting forth a schedule of visitation for James. During the school year, James would have "parenting time"
of Wednesday and Thursday evenings from approximately 5:30 to 8:30 p.m., and a twenty-four hour overnight
stay each weekend. During the summer, James would have the children overnight on both Wednesday and
Thursday. The parties would alternate major holidays with the children.
A dual judgment of divorce was granted by the trial court following a six-day trial. Under the terms
of the divorce, the court incorporated by reference the child custody and "parenting time" order of September
23, 1991. The trial court refused James' request to term the custody arrangement "nontraditional." The
court did not find James exempt from paying a proportionate percentage of his salary to Debra, which equals
fifty-eight percent of the amount needed to support the children. The trial court based its child support
award on Debra's gross annual income of $52,500 and James' gross annual income of $72,500. Debra was
ordered to contribute, from her own salary, support equalling forty-two percent of the childrens' necessary
expenses per year. To determine the amount of support, the court applied the Child Support Guidelines for
income levels up to $52,000 of combined income, and then supplemented that guideline award with an
additional support amount based on the remaining family income, the factors enumerated in N.J.S.A. 2A:34-23 (section 34-23), and the quality of life desired by both parties for their children. This led the court to
order James to pay child support to Debra of $1,250 per month for the first twelve months, to be reduced to
$1,150 per month for the remainder of their childhood, with further reductions as each child becomes
emancipated.
On appeal, the Appellate Division reversed the decision of the trial court, finding that the Pascales'
joint custody arrangement was nontraditional and that the trial court had failed to explain its rationale for
the child-support award. The matter was remanded to the trial court for reconsideration of the child-support
order.
The Supreme Court granted Debra's petition for certification to review the Appellate Division's
ruling that the custody and visitation agreement was nontraditional and that, therefore, the Child Support
Guidelines, or an extrapolation therefrom, were not applicable. The Court also granted James' petition for
certification to review the Appellate Division's finding in respect of the equitable distribution of stock options
acquired by Debra shortly after marriage ended. HELD: James and Debra Pascale entered into a traditional custody arrangement that provided that they share joint legal custody of their children, but that Debra be the primary caretaker. The parent who acts as the primary caretaker for the children after divorce should retain authority over the disbursal of the child support that both parents must provide. The parameters established at N.J.S.A. 2A:34-23a should guide a court when determining child-support awards in a traditional custody
arrangement when the parents' combined income exceeds the $52,000 limit covered by the Child
Support Guidelines.
1. Child support is the right of the child and the responsibility of both parents after divorce. In establishing
the necessary level of child support, our courts look to the Child Support Guidelines, which apply to a
combined family income of up to $52,000. If the combined family income exceeds $52,000, the trial court has
the discretion to apply the guidelines up to that amount, using Appendices IX-A and IX-B to determine the
baseline amount or percentage of the combined income attributable to both the primary and secondary
caretakers, and to supplement that preliminary figure with an additional support amount based on the
remaining family income and the factors enumerated in section 34-23a, particularly a(4), which requires
consideration of the tasks of the primary caretaker. A court should also consider the factors set forth in
section 34-23 in "nontraditional" custody arrangements. The key to both the Guidelines and the statutory
factors is flexibility and the best interest of children. (pp. 6-12)
2. In the future, the parties should differentiate between "joint legal custody" and "joint physical custody."
Joint legal custody is defined as authority and responsibility for making "major" decisions regarding the
child's welfare. Joint physical custody is defined as joint responsibility for day-to-day decisions and the
exertion of continuous physical custody by both parents over the child for significant periods of time. In New
Jersey, cases of joint physical custody are rare, however, there is a wide variety of parenting time for non-custodial parents. (pp. 12-16)
3. Because the terms custodial and non-custodial parent fail to describe custodial functions accurately, the
Court adopts the term "primary caretaker" to refer to the "custodial parent" and the term "secondary
caretaker" to refer to the "non-custodial parent." The primary caretaker has the greater physical and
emotional role, performing the everyday tasks of child-rearing. Factoring the role of the primary caretaker in
child-support matters will serve the child's best interests. In determining the level of child support, courts
must consider: the tasks performed by the primary caretaker on behalf of the children of the divorce; the
necessity that the primary caretaker receive most of the secondary caretaker's child support; and the
necessity that the primary caretaker decide how that support is to be disbursed to provide for the children.
In order to take care of the child's basic needs, the primary caretaker should be accorded autonomy over the
day-to-day structure of and disbursal of child support for the new family unit. (pp. 16-19)
4. The Pascales' custody arrangement is traditional, with Debra acting as the primary caretaker. Based on
the trial court's detailed analysis of the children's expenses and its just determination of which parent should
pay for particular expenses, the trial court properly calculated the child-support contributions of each parent
according to the governing procedure for divorced parents whose family income exceeds $52,000. The trial
court took careful measures to assure that each parent paid their fair share of the children's needs, and gave
the primary caretaker the autonomy and authority to disburse the support ordered by the court, allowing the
secondary caretaker to retain a small portion of the amount of total need of parenting time. (pp. 19-29)
5. Stock options awarded after the marriage has terminated but obtained as a result of efforts expended
during the marriage should be subject to equitable distribution. Thus, the two stock options acquired by
Debra on November 7, 1990, just ten days after the filing of the divorce complaint, are subject to equitable
distribution. The Court affirms only so much of the Appellate Division decision that includes, for purposes
of equitable distribution, the option for 1,800 shares of stock . The Court reinstates the trial court's order for
child support in its entirety and its inclusion of the option for 4,000 shares of stock in the marital estate for
purposes of equitable distribution. (pp.29-37)
The judgment of the Appellate Division is AFFIRMED IN PART and REVERSED IN PART.
CHIEF JUSTICE WILENTZ and JUSTICES HANDLER, POLLOCK, O'HERN, STEIN and
COLEMAN join in JUSTICE GARIBALDI'S opinion.
SUPREME COURT OF NEW JERSEY
DEBRA PASCALE,
Plaintiff-Appellant
v.
JAMES PASCALE,
Defendant-Respondent
___________________________
Argued February 14, l995 -- Decided July 10, 1995
On certification to the Superior Court,
Appellate Division, whose opinion is reported
at
274 N.J. Super. 429 (l994).
Laura M. Le Winn argued the cause for
appellant and cross-respondent.
Bruce I. Afran argued the cause for
respondent and cross-appellant.
The opinion of the Court was delivered by
as the "primary caretaker" for the children after divorce should
retain authority over the disbursal of child support that both
parents must provide. We decide those issues not in the context
of a father or mother's custody rights, but in the context of the
responsibilities of both parents to their children. The lodestar
of our consideration continues to be the best interests of the
child. A. FACTS Debra and James married on June 19, 1977, and had three children: a son, born in 1984, and twin daughters, born in 1986. Marital difficulties developed, and Debra filed a complaint for divorce against James on October 28, 1990. In response to Debra's motion for pendente lite support, the trial court on March l9, l99l, issued an order that required James to pay sixty percent of all shelter, transportation, and other costs for the support of the children, and allocated other costs between the parties. On September 23, 1991, another trial court issued an order that granted the couple joint custody of the children, set forth
a schedule of visitation for James, and designated Debra as the
"residential custodial parent." Pursuant to that order, the
trial court structured James's visitation or "parenting time" in
the following manner. For the ten-and-one-half-month school
year, James would have the children for dinner from approximately
5:30 p.m. to 8:30 p.m. on Wednesday and Thursday evenings; and
each weekend, he would keep the children for a twenty-four-hour,
overnight stay. During the approximately seven-week summer, the
trial court ordered James to keep the children overnight on both
Wednesday and Thursday. In addition, the trial court ordered the
parties to alternate major holidays with the children.
term the custody arrangement between the parties as
"nontraditional." The court found that James was not exempt from
payment of a proportionate percentage of his salary to Debra,
which equals fifty-eight percent of the amount needed for the
support of their children. At the time of the trial, the court
assumed that Debra had a gross annual income of $52,500 and James
had a gross annual income of $72,500. In addition, the trial
court ordered Debra to contribute from her own salary child
support equalling approximately forty-two percent of the
children's necessary expenses per year. Specifically, the trial
court applied the Child Support Guidelines for income levels up
to $52,000 of combined income, and then supplemented that
guideline award with an additional support amount based on the
remaining family income, the factors enumerated in N.J.S.A.
2A:34-23, and the quality of life desired by both parties for
their children. That led the trial court to order James to pay
child support to Debra of $l,250 per month for the first twelve
months, to be reduced to $l,l50 per month for the remainder of
their childhood, with further reductions as each child becomes
emancipated. Recognizing both parents' strong interest in
remaining involved in the lives of their children but also
recognizing the greater responsibility borne by Debra in caring
for the children, the trial court ordered that James pay his
percentage of child support to Debra.
Both parties appealed. The Appellate Division reversed the
trial court, finding that the Pascales' joint custody arrangement
was nontraditional. In so doing, the Appellate Division defined
a "nontraditional" custody arrangement as "visitation [in excess
of] . . . one day per week" for the non-custodial parent. 274
N.J. Super. 429, 443 (1994). The Appellate Division recognized
that the trial court had followed the applicable Child Support
Guidelines and the statutory criteria from N.J.S.A. 2A:34-23 to
establish a support order for that nontraditional custodial
arrangement, but found that the trial court had not explained its
rationale for awarding $l,250 per month initially, which was to
be reduced to $l,l50 per month permanently on August l, l993.
Id. at 444-45. The Appellate Division therefore remanded the
matter to the trial court for reconsideration of the child
support order. Ibid.
This Court granted certification to both parties.
138 N.J. 266 (l994).
while she remains unemancipated. Lynn v. Lynn,
165 N.J. Super. 328, 342-43 (App. Div.), certif. denied,
81 N.J. 52 (1979)."
Ibid. (other citation omitted). Most important, the non-custodial parent's failure in Martinetti to maintain ties with
his daughter did not obviate his responsibility to contribute to
her basic needs. Id. at 513.
financially-able parents. Id. at 151. In determining both the
amount of money necessary to raise children of divorce and the
division of that obligation between working custodial and non-custodial parents, "the talisman of concern is always the welfare
of the child." Guglielmo, supra, 253 N.J. Super. at 546.
Appendix IX-A of that Rule sets forth eight specific
"[c]onsiderations which may make these Child Support Guidelines
inapplicable or cause the child support amount to be adjusted."
Id. at Appendix IX-A. One of those enumerated "considerations"
has a direct bearing on the case at hand: "If the combined net
family income exceeds $52,000.00, the court shall apply the
guidelines up to that amount and supplement the guidelines award
with an additional support amount based on the remaining family
income and the factors enumerated in N.J.S.A. 2A:34-23." Id. at
Appendix IX-A, ¶ (1)(b) (emphasis added). Appendix IX-A also
states that "[t]hese child support guidelines are intended to be
applied to cases having traditional custody and visitation
arrangements." Id. at Appendix IX-A, ¶ (2). Appendices IX-B and
IX-C provide exact percentages and weekly contributions for
income levels up to $52,000. Id. at Appendices IX-B and IX-C.
(1) Needs of the child;
(4) Earning ability of each parent,
including educational background, training,
employment skills, work experience, custodial
responsibility for children including the
cost of providing child care and the length
of time and cost of each parent to obtain
training or experience for appropriate
employment;
Thus, the highlighted portions of N.J.S.A. 2A:34-23a support
the conclusion that the Legislature intended courts to consider
the tasks of the primary caretaker in allocating child-support
awards for children whose parents' combined income exceeds
$52,000 and for children whose parents choose nontraditional
custody arrangements. Those portions also demonstrate that in
either case, the trial courts have discretion in determining
child support. The key to both the Guidelines and the statutory
factors is flexibility and the best interest of children.
schedules to base them on more current and accurate economic
estimates of child-rearing expenditures and to increase the upper
limit of those schedules. While we have not been presented with
any amendments to the Guidelines, we await those changes and
assume that they will incorporate the trends in this state that
are reflected in this opinion. Until then, child-support
determinations must be made under the governing law.
situations. Instead, we recommend that in the future parties
differentiate between the terms "legal custody" and "physical
custody" in defining their status and the forms of relief that
they are seeking from the court.
majority of custody arrangements throughout the country today.
Elizabeth S. Scott, Pluralism, Parental Preference, and Child
Custody,
80 Cal. L. Rev. 615 nn.28 & 66 (citing Catherine R.
Albiston et al., Does Joint Legal Custody Matter?, 2 Stan. L. &
Pol'y Rev. 167 (1990) (finding that in California, eighty percent
of divorced parents have joint legal custody of their children);
W.P.C. Phear et al., An Empirical Study of Custody Arrangements,
in Joint Custody and Shared Parenting 142, 147 (Jay Folberg ed.,
1984) (finding, in search of Massachusetts court records, that
only ten percent of those families with joint legal custody also
had joint physical custody); Robert J. Racusin et al., Factors
Associated with Joint Custody Awards, 28 J. Am. Acad. Child
Adolescent Psychiatry 164 (1989) (finding that joint physical
custody is rare both in Vermont and New Hampshire)).
literature on the subject is that "joint physical custody" means
that the child lives day in and day out with both parents on a
rotating basis. Numerous "parenting times" with a child do not
constitute joint physical custody; to constitute joint custody,
each parent must exert joint legal and physical custody over the
child.
parents is wide and the cases of "joint physical custody" are
rare.
1986); Maureen F.G. v. George W.G.,
445 A.2d 934 (Del. 1982);
Agudo v. Agudo,
411 So.2d 249 (Fla. Dist. Ct. App. 1982); Rolde
v. Rolde,
425 N.E.2d 388 (Mass. App. Ct. 1981); Maxfield v.
Maxfield,
452 N.W.2d 219 (Minn. 1990); Riaz v. Riaz,
789 S.W.2d 224 (Mo. Ct. App. 1990); Burleigh v. Burleigh,
650 P.2d 753
(Mont. 1982); Crum v. Crum,
505 N.Y.S.2d 656 (App. Div. 1986);
Moore v. Moore,
574 A.2d 105 (Pa. Super. Ct. 1990); Pusey v.
Pusey,
728 P.2d 117 (Utah 1986); Harris v. Harris,
546 A.2d 208
(Vt. 1988); Garska v. McCoy,
278 S.E.2d 357 (W. Va. 1981).
adopt the concept of primary caretaker and establish standards to
allocate the financial resources between separated and divorced
parents who have chosen to have one parent be the primary
caretaker and the other parent be the secondary caretaker. That
arrangement may have been patterned during their marriage or may
have been chosen during divorce proceedings. Most important, the
person who continues as or becomes the primary caretaker may be
father or mother. More fathers are becoming primary caretakers.
Child Support, supra, at 1 (finding 1.6 million custodial fathers
to 9.9 million custodial mothers). All caretaking represents a
major contribution to our society. Fineman, supra, The Sexual
Family, at 9. Thus, once the roles of primary caretaker and
secondary caretaker have been established, the courts should make
determinations about child support based on the assumption of
those roles.
family in which he or she is the primary caretaker. That
structure is established by the courts, not to leave out the
secondary caretaker, but to assure that the child is as
undisturbed as possible in the implementation of the child's
parents' decision to make one parent the child's primary
caretaker. The primary caretaker who makes those day-to-day
decisions needs autonomy over the financial resources drawn from
both parents' salaries to effectuate those decisions without
endless discussion with the secondary caretaker.
norm in our society of physical custody to the primary, not the
secondary, caretaker.
on the proper care and level of financial support for their
children, courts must step in and act as an objective arbiter,
always with the best interests of the children in mind. That is
what the trial court did. Because the Pascales' combined income
exceeds $52,000, the trial court based the final child-support
figures on its consideration of the factors set forth in N.J.S.A.
2A:34-23 -- the same factors a court should refer to in
determining child support in a nontraditional custody arrangement
-- as well as the governing Child Support Guidelines of Rule
5:6A.
various expenses of the parties was as meticulous and clear as
its comprehension of what does and does not constitute a
"nontraditional" custody arrangement. In effect, the trial court
found that the children's yearly need exceeded $25,000 and that
James would be responsible for fifty-eight percent and Debra
would be responsible for forty-two percent of their children's
needs, a reflection of the breakdown of their combined income.
were to remain in the larger house with the primary caretaker who
cares for them on a daily basis.
but simultaneously attempting to reflect the reasonable needs of
the secondary caretaker.
the actual need was greater than $25,000 per year. In so doing,
the court focused on the fact that both James and Debra Pascale
wanted to maintain comfortable lifestyles for their children,
particularly high quality, year-round child care, which as
working parents they both wanted, and various enrichment
programs. For example, the court accepted that that type of
child care cost at least $618 per month, consisting of daily
child care for the twins and $4,000 for summer day camp for all
three children. The court acknowledged that part of Debra's
gross income would automatically be spent to pay for summer day
camp and that Debra would also pay for daily child care. Thus,
relying on many such examples, the court valued at over $25,000,
the children's basic, year-round needs.
the trial court then ordered the allocation of other expenses for
the children, specifying either the primary or secondary
caretaker as responsible for particular expenses. For example,
after listening to voluminous testimony about the child care that
both parties agreed was necessary for their children, the court
found that James's child-support payments were to be inclusive of
any contribution to child care and babysitting expenses for the
children. For medical care, orthodontia, and religious training,
Debra assumed a greater burden than James. Making Debra
responsible for health insurance coverage for the children, the
trial court ordered the parties to share any medical expenses for
the children not reimbursed by Debra's health insurance, finding
that James would pay the first $500 per year toward the aggregate
unreimbursed medical expenses for the children, followed by a
sixty-to-forty-percent split between James and Debra thereafter.
In addition, the trial court ordered Debra to be responsible for
all orthodontia. Also, the trial judge ordered the parties to
divide the costs of religious training for their children, but
made Debra responsible for all summer day camp expenses.
However, the total amount to be spent by each parent per month
equalled their children's basic needs, given their parents'
choice of lifestyles for them.
James. After recognizing that the Pascales' income exceeded the
amount found in the guidelines, the court stated:
While the Appellate Division found that the trial court
should have more carefully set forth its findings of how it
arrived at the specific amount(s), $1,250 reduced to $1,150, of
child support that James must pay, we infer that in its
discretion, the trial court lowered James's amount of child
support due to James's assumption of the role of secondary
caretaker of his children. In that role, James frequently sees
his children, provides them with some dinners, takes them to
their activities, and keeps them overnight in accordance with the
schedule set out in the custody order. Through that role, James
plays an integral and on-going part in his children's lives, but
he is not their primary caretaker.
procedure. When the combined income of the divorced parents
exceeds $52,000, the Child Support Guidelines provide that a
trial court may, in its discretion, consider the factors
enumerated at N.J.S.A. 2A:34-23, to add to the baseline figure of
child support. The trial court took careful measures to assure
that both parties pay their fair share of the children's basic
needs, that the primary caretaker be given autonomy and authority
over the disbursal of child support ordered by the court, and
that the secondary caretaker retain a small portion of the amount
of total need for parenting time. We, therefore, affirm the
trial court's award and find no need for remand in this matter.
. . . It is fully consistent with the reasonable
expectations of the parties, . . . that that
parent given the responsibility for the day-to-day rearing of the children should be able
to discharge that responsibility (subject, as
always, to notification to, and dialogue
with, the joint custodial parent).
We agree with the Brzozowski court. To provide for the children
of divorce, finalize living structures, and relieve stress from
the child's life and the lives of both parents, grants of
authority to the primary caretaker are necessary. This "child-centered view" of the problems associated with child support is
neither pro-father nor pro-mother, but pro-child. Ira C. Lupu,
The Separation of Powers and the Protection of Children,
61 U.
Chi. L. Rev. 1317, 1337 (1994). Such a grant of authority
observes the guiding principle that child support runs between
parent and child, rather than parent and parent. When Debra began her employment with Liposome Company on April l4, l987, she was immediately granted the option to purchase 5,000 shares of stock in Liposome. As of the date of trial, Debra owned the following options: Date Granted Number of Shares
April l4, l987 5,000 Debra filed for divorce on October 28, 1990. Neither party disputed that the stock-option grants awarded prior to the filing of Debra's divorce complaint are subject to equitable
distribution, and that the stock-option grant awarded on November
l5, l99l, was not subject to equitable distribution. However,
Debra has argued that the stock-option grants awarded to her on
November 7, 1990, approximately ten days after she filed for
divorce, were not subject to equitable distribution. Based on
language in the accompanying transmittal letters, she asserts
that the option for 1,800 shares was issued in recognition of
past performance and that the option for 4,000 shares was awarded
in recognition of a job promotion that imposed increased
responsibility on her in the future.
excluded. 274 N.J. Super. at 437-40. The Appellate Division
based that decision on its interpretation of the facts, finding
that the option for 4,000 shares of stock was granted in
recognition of a promotion in job responsibility and an increase
in salary; therefore, that option was "more appropriately . . .
designed to enhance future employment efforts" and should not
have been included in the marital estate. Id. at 439. However,
as to the other option for l,800 shares of stock, the Appellate
Division found that that option was granted in recognition of
past employment performance. Id. at 440. That option,
therefore, was properly includable in the marital estate
notwithstanding the date-of-complaint rule based on equitable
considerations, as discussed in Kikkert v. Kikkert, l
77 N.J.
Super. 47l (App. Div.), aff'd o.b.,
88 N.J. 4 (l98l). 274 N.J.
Super. at 440.
during marriage. Id. at 214. On many occasions, this Court has
declared that marriage is viewed as "'a shared enterprise, a
joint undertaking, that in many ways -- is akin to a
partnership.' Therefore, marital assets acquired in the course
of that joint undertaking fairly should be included in the estate
subject to equitable distribution." Portner v. Portner,
93 N.J. 215, 219 (1983) (quoting Rothman v. Rothman,
65 N.J. 219, 229
(1974)). The asset in dispute falls into that category.
To refute such a presumption, the party seeking exclusion of
the asset must bear "'the burden of establishing such immunity
[from equitable distribution] as to any particular asset.'"
Landwehr v. Landwehr,
111 N.J. 491, 504 (1988) (quoting Painter,
supra, 65 N.J. at 214). In Kikkert, supra, this Court approved
of the Appellate Division's characterization of a pension benefit
as "the result of direct or indirect efforts expended by one or
both parties to the marriage -- it is additional compensation for
services rendered for the employer and a right acquired during
the marriage." l77 N.J. Super. at 476. Consequently, in that
case, the court remanded the matter to the trial court for a
determination of the present value of the non-pensioned spouse's
interest in the pension as part of the marital estate subject to
equitable distribution. Id. at 477-78.
her spouse the benefit of that asset when the court determines
the value of the marital estate. |