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Was father entitled to a credit for all excess payments? Merritt v. Merritt 188 A.D.3d 886 (N.Y. App. Div. 2020)

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In New York, when a parent has overpaid child support, they may be entitled to a credit for excess payments. This credit applies to future child support obligations. The process usually requires a formal court order or a judge’s decision confirming the overpayment and approving the credit. This situation often arises after a successful appeal or modification of a child support order that results in a reduced payment obligation. In Merritt v. Merritt 188 A.D.3d 886 (N.Y. App. Div. 2020), a proceeding in Westchester County, New York, a father appealed a Family Court decision that limited the credit he received for excess child support payments.

Background Facts
The parties involved, a mother and a father, were divorced in 2010 after having three children together. As part of the divorce settlement incorporated into the judgment, the father was mandated to pay $3,272 monthly in child support. This amount was subject to an annual recalculation based on his income, which was to be at least $175,000. In December 2014, following a consent order, his child support obligation increased to $4,593 per month.

In April 2015, the father lost his job and in December of that same year, he petitioned for a downward modification of his support obligation due to his change in circumstances. However, in September 2016, his petition was denied by a Support Magistrate. He objected to this decision, but the Family Court denied his objections in December 2016.

The father appealed this decision, and in 2018, the Appellate Division reversed the Family Court’s decision, recognizing that the father had demonstrated a substantial change in circumstances. The case was remanded to the Family Court to recalculate his child support obligations. Upon remittitur, his new monthly obligation was set at $1,784 based on an imputed income of $80,000. Additionally, he was granted a credit for excess payments made during a specific ten-month period. Dissatisfied with the duration of the credit, the father raised objections again, which were denied in July 2019. This led to the current appeal.

Issue
Whether the father was entitled to a credit for all excess payments made since his original petition for downward modification in December 2015 or just for the ten months specified by the Support Magistrate.

Holding
The Family Court’s decision to deny the father’s objections and limit the credit for overpayments to ten months was affirmed.

Rationale
The primary legal question was whether the father was entitled to a credit for excess child support payments beyond the ten-month period assigned by the Support Magistrate. The father argued that his credit should extend from the initial filing of his downward modification petition in December 2015 until the “new order” was issued or through the date of the appellate court’s decision reversing the December 13, 2016 order.

The court affirmed the limitation of the credit to the ten-month period. It reasoned that when the father filed a new petition on October 5, 2016, which was granted and made retroactive to the filing date, his obligations were adjusted based on this new filing, not the order being appealed. Thus, the payments made under the order contested from September 2016 no longer applied once the new petition was granted.

Additionally, the court highlighted that the father had not filed objections nor appealed the February 27, 2017 order, which effectively meant he accepted the findings of that order. This acceptance barred him from seeking further credit under the appealed order as it was superseded by the new orders which were unchallenged. Therefore, the rationale was that credits for overpayments were only applicable under the specific orders that were in dispute and before any subsequent modification was approved and took effect.

Conclusion
Navigating the complexities of child support modifications and credits for overpayments can be challenging. If you find yourself in a similar situation, consulting with an experienced New York family lawyer is crucial. A knowledgeable attorney can help you understand your rights, represent your interests effectively, and ensure that any adjustments to child support payments are fair and legally justified. For expert guidance and representation, contact Stephen Bilkis & Associates today. Their team understands the nuances of family law and will work tirelessly to advocate for your needs and the best interests of your children.

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