The recent Pennsylvania Superior Court case of Murphy v. McDermott provides the family law practitioner with reminders and clarifications as to calculating a party’s income for support purposes. The Murphy case focuses on four main issues: whether a parent should be obligated to contribute toward private school tuition; whether one-time stock options exercised in one year should be imputed as income for future years; the calculation of perquisites as income, specifically the personal use of a company-provided vehicle; and whether a withdrawal penalty should be factored into the inclusion of an employer’s gross contribution to an employee’s 401(k) and stock accounts.

Private school tuition is always a hot topic among family law practitioners regarding calculating child support. When calculating child support, a party’s contribution to private school tuition is an additional expense added to the basic child support calculation. Pursuant to Pa. R.C.P. 1910.16-6(d), if the court determines that private school is reasonable, the expense of the private school is allocated between the parties in proportion to their net incomes. According to Pennsylvania case law, “A private school education may be a reasonable expense if: (1) it is established the child will benefit; and (2) private school ‘is consistent with the family’s standard of living and station in life before the separation.’” In the present case, James McDermott appealed the trial court’s decision to include in his monthly support payment a monthly contribution toward the private school tuition of the parties’ minor child, as noted in the opinion.

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