Pennsylvania Court Ruled Settlement Funds Not Income

The state's Superior Court vacated a child support order based on wrongful death settlement proceeds.

Updated on Oct. 14, 2026 in Divorce

Pennsylvania Court Ruled Settlement Funds Not Income

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Should wrongful death settlement funds be considered income when calculating child support payments?

A Pennsylvania Superior Court panel ruled that wrongful death settlement funds are not considered income for child support calculations. The court vacated an Erie County Juvenile Court order that had required Jennifer Zeppieri to pay monthly support based on her settlement money.

Why it matters

The decision clarifies how state law treats inheritance-like settlement funds compared to regular income. By overturning the lower court's ruling, the panel emphasized that proceeds from a survival action estate should not be categorized as standard earnings.

Jennifer Zeppieri received a $1.69 million gross settlement, with over $1 million remaining net after expenses. She currently draws $1,940 monthly from trust accounts established by these survival action damages.

The players

Jennifer Zeppieri

She is the recipient of a wrongful death settlement who challenged the classification of those funds as income.

Jeffrey Birkmire

He filed the motion in 2024 that initiated the legal request for child support payments.

Pennsylvania Superior Court

This intermediate appellate court hears appeals from the state's common pleas courts.

Erie County Juvenile Court

This lower court originally presided over the child support order now subject to further proceedings.

The details

The appeals panel determined the trial court failed to properly analyze the settlement according to the Humphreys v. DeRoss legal precedent. Judges reviewed the inheritance tax return and settlement order, which designated the entire amount as survival damages rather than regular income.

Timeline

  1. A.H. died in a car accident in December 2022.

  2. Jeffrey Birkmire filed a motion for child support in October 2024.

  3. The juvenile court ordered Zeppieri to pay child support in May 2025.

  4. The appeals panel filed its opinion on October 1, 2026.

  5. H.B. turns 18 in June 2027.

Culture Shift

This case highlights the evolving legal interpretation of how financial windfalls, such as inheritances and settlement damages, intersect with domestic support obligations. It reflects a broader judicial shift in Pennsylvania toward strictly categorizing assets to ensure equitable support determinations.

This ruling sets a legal standard for Pennsylvania residents regarding how specific types of settlement funds are treated in family court. It provides clarity for individuals involved in ongoing support litigation who may have received wrongful death or estate-related settlements.

The takeaway

This case demonstrates the critical importance of legal classification when calculating support obligations. Residents should consult with legal counsel to understand how different types of financial settlements are categorized under state law.

What happens next

The trial court will hold further proceedings to re-evaluate the child support order following the appellate remand.

Further reading

For more information on legal guidelines regarding support, visit Pennsylvania Divorce.

Source note: This article includes information reported by Legal Newsline.

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Should wrongful death settlement funds be considered income when calculating child support payments?