Pennsylvania Ends the Use of Parent Coordinators

Earlier this year, we blogged about  of our colleague, Aaron Weems' post on our firm's Pennsylvania Family Law Blog, which advised that any recommendations by a parent coordinator would be given a de novo review by a court.  A de novo review means that the Court is taking a completely fresh look at the issue and is not obligated to make or accept the same conclusions, interpretations, or issue the same Order as the prior level did (in this case, the Parent Coordinator); their job is to look at all of the information as though it is brand new to everyone and reach a decision based on the evidence presented.

This week, Aaron posted a piece entitled New Rule: No Parent Coordinators Allowed on that blog.  Aaron advises that the Pennsylvania Supreme Court enacted a new rule that stated:

Only judges may make decisions in child custody cases. Masters and hearing officers may make recommendations to the court. Courts shall not appoint any other individual to make decisions or recommendations or alter a custody order in child custody cases. Any order appointing a parenting coordinator shall be deemed vacated on the date this rule becomes effective (Editor’s Note: May 23, 2013)....

Aaron noted that this ended the quasi-judicial role of parent coordinators.  He also wondered whether this would result in increased enforcement and modification proceedings. 

As I noted when commenting on Aaron's prior post regarding the de novo review:

Isn't that was it supposed to happen in NJ? Under the now defunct Parent Coordination Pilot Program which we have blogged on many times in the past, recommendations of a parent coordinator, if accepted, were to immediately become a court order. However, either of both parties objected, either or both could bring the matter to the court for review. That said, it really wasn't a de novo review because the court would have the recommendation made by the parent coordinator. All too often, thought the judge is not supposed to defer to the parent coordinator, this is exactly what happened, 

So bravo to Pennsylvania for requiring a true de novo review, where judicial authority is not abdicated to a third party and evidence is actually considered. On the other hand, a malevolent party will object to every recommendation, totally vitiating the purpose of a parent coordinator in the first place, and causing the other party to incur fees, first for the parent coordination and then for the inevitable subsequent litigation.

As I blogged previously, New Jersey, while ending the pilot program, does not preclude the appointment of parent coordinators.  If courts defer blindly to the recommendations of parent coordinators, without thoroughly reviewing the issues, will New Jersey be next to totally bar their use? 

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Will New Jersey Child Support Awards Be Going Down?

Child support in New Jersey for parties with combined net (after tax) income of less than $187,200 per year ($3,600 per week), are supposed to be determined based upon the Child Support Guidelines.  The Guidelines are based upon economic data of what it costs to raise a child.

 That economic data has been reviewed and, as a result, there are proposed changes to the child support guidelines that may actually see the figures going down, especially for multiple children. The Supreme Court has published the proposed changes on the Court's website.

 

As noted in the New Jersey Law Journal, the state Supreme Court's Family Practice Committee is recommending rule revisions that would allow child-support determinations to be based on a broader and more accurate picture of family spending. Specifically, the committee urges adoption of a new award schedule that "for the first time captures spending in families over a twelve year period," from 2000 through 2011, which "encompasses prosperous years, recession years and the current slow recovery years."

 

For sake of reference, at the highest level, the weekly amount of child support to be apportioned between both parents based upon their percentage shares of net income is follows:

 

No. of Children            1          2          3              4          5          6         

 

Current                         $453    $606    $658    $733    $806    $877

Proposed                     $571    $589    $731    $803    $884    $973

Interestingly, the proposed weekly support for one child increases by $118 but the support for two child decreases by $17.  Moreover, the support only increases by $18 per week from one to two children under the proposed new guidelines when under the current guidelines, it increased by $153 per week.  What this suggests is that the marginal cost of a second child, under the current data reviewed, is insignificant. However, the support then increases again for three, four, five and six children over the prior guidelines.  The proposed schedule can be found at the above link.  You can click here for the current schedule.

 

The above is just a snapshot of the highest level of guideline support, however, similar changes appear throughout lower levels of the Guidelines.  As this is now open for a comment period, it will be interesting to see if there will be any changes before this is implemented.  Stay tuned.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com

RESOLVING ISSUES OF CREDIBILITY WITHOUT A TRIAL - HOW FAR IS TOO FAR?

Picture this - two spouses in a matrimonial dispute.  The husband (or former husband) files a motion to reduce his alimony.  In support of that motion, the husband files a certification, under oath, telling his side of the story about how he lost his job, has a disability, or whatever reason it is that has caused his down income.  On the flip side, the wife files her response to the husband's motion, with a certification of her own, telling her side of the story about the husband is still living lavishly, is lying to the court, and is simply doing what he has to do to reduce his payment obligation to her.  Not surprisingly, the two versions of events could not be more diametrically opposed.

 

In that scene, what is the trial judge supposed to do?  Is he just supposed to take the husband's word for it that he can no longer earn what he did before and that his entire financial picture merits a reduction of his support?  Is he supposed to believe the wife's response, about how her former husband is simply just a bad guy who refuses to pay that to which he agreed or was ordered.

 

Generally - but, of course - not always, a trial judge is not supposed to resolve the question of credibility, or who is telling the truth, simply by reading the papers submitted by each party.  When there is a dispute of fact, the judge is supposed to then order a hearing, during which time he will take testimony from the parties and then determine who is credible/truthful.  Ordering a hearing, though, does not happen in every case, as almost every case will inevitably involve some dispute of fact, to some degree.  If the judge ordered a hearing in each instance, the family part would be even more flooded than they already are. 

So at what point has a judge gone "too far" by resolving a dispute of fact on the papers without holding a hearing.  The recently decided Appellate Division matter of Scianni v. Scianni presented such a case.  Without going into too much detail, former husband sought to reduce his alimony from that set forth in a settlement agreement because he argued that he could no longer earn what he once did.  Wife disagreed and espoused on how her ex was still enjoying a lavish lifestyle, complete with a vacation villa in St. Maarten.  

 

In denying the husband's request for a reduction of his alimony, the trial judge made several findings of credibility on the papers alone, providing as follows in his decision: 

[W]hen I read this certification of Mr. Scianni I was very moved. However, in reading the certification of Ms. Scianni, there's a completely different picture painted of Mr. Scianni. And I realize that the problem that the [c]ourt is so often faced [with], . . . faced every single time I get one of these motions, is that you got two different certifications . . . at completely different ends of the spectrum.

 And it's very difficult to sort truth from fiction, and who's telling the truthAnd oftentimes you're probably better off just throwing the certifications out the window and making a decision based on something else.  However, in this case, what really rings a bell of credibility to me is the certification of Ms. Scianni. She says that, hey, do not believe Mr. Scianni. This is a divorce which was hotly contested. It was, it lasted for approximately four plus years. And that Mr. Scianni . . . knows no boundaries and will do everything he can to not have to pay his obligation and fight me.  I would note that Mr. Scianni has been current up until this time. But Ms. Scianni in her certification provides some proofs which certainly raise red flag[s] with the [c]ourt as to whether or not Mr. Scianni is being sincere and candid with the [c]ourt. And I don't think he is.  He's crying poverty yet he is still able to maintain a vacation villa down in St. Martin at the Ritz Carlton, and I would . . . note that according to the certification of Ms. Scianni, that this was a property which was underwater figuratively in that they owed, the parties owed money on this property. Now the property is current, up to date, paid off, and Mr. Scianni claims, well, you know, it's the mortgage on the property is really my cousin, but I have to hire a lawyer down in St. Martin to make some changes.

 You know, and Ms. Scianni goes on to further state that you know, he claims he's driving a borrowed car, but he recently was seen driving a Mercedes Benz. If it is a borrowed car, why doesn't he provide any proof as to who the real owner of the borrowed car is. And if he was to do that, then the [c]ourt . . . might be surprised as to who really is the owner of the borrowed car. That certainly raises a red flag as well.

 Ms. Scianni also points out that his practice that he's still working, that his practice, I should not go by his recent tax returns, that Mr. Scianni has been known to take cash in the past and not declare that on his tax returns, and that it is certainly not beyond Mr. Scianni to do that. This is a woman that has lived with Mr. Scianni, knows what Mr. Scianni is like. And that certainly has a ring of credibility to it as well.

I have highlighted certain portions of the trial court decision above, each of which causes alarm as to the trial court's findings.  The Appellate Division also took issue with several portions of the trial court's comments, indicating that, while a trial court has broad discretion in reviewing a request to modify alimony, and that not every factual dispute merits a plenary hearing, the factual disputes surrounding the husband's ability to generate income merited a trial.

 

It further noted that the "red flags" uncovered by the trial court in the papers does not escape the need for a hearing to properly resolve the factual dispute with testimony, nor does a reliance by the court upon one spouse's indication that she knows what the other spouse is like.  As a result, the Appellate Division not only remanded the matter for further proceedings, but also directed that such proceedings be before a new trial judge in light of the credibility findings already made by the former judge.

 

This was an interesting decision for a variety of reasons, not the least of which is that not often do we come across cases where an entire decision is overturned on the basis of the credibility findings, or lack thereof.  While there is often a gray area as to when a factual dispute between parties merits a hearing with testimony, this case fell beyond that area where the findings of credibility on major facts in dispute was clear and required a reversal.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com

 

Is Alimony Reform On Its Way in New Jersey

There has been an alimony reform movement that has been gaining traction throughout the country.  Some of the major concerns appear to be this issue of permanent alimony and the lack of uniformity in alimony awards, both in amount and duration, from case to case.  In the recent past, alimony laws have been reformed in Florida, Massachusetts and Maryland.  Is New Jersey next?

On March 7, 2013, A3909 was introduced in the New Jersey Assembly, which, if passed, would radically change alimony as we know it in New Jersey. 

The following are a highlight of the changes:

  • All references to permanent alimony are deleted from the statute, though, as noted below, for marriages of more than 20 years, an indefinite award of alimony can be be granted

 

  • The concept of imputing income to someone that is unemployed or underemployed, which already exists in the case law and child support guidelines, would be codified

 

     

  • The amount of limited duration alimony should not exceed the recipient's need or 30 to 35 percent in the difference between the parties gross incomes at the time of the initial award, though a court would have the discretion to deviate.  Some reasons for deviation would be advanced age, chronic illness, unusual health circumstances, whether the payer is providing or ordered to provide health insurance to the recipient, sources and amounts of unearned income not allocated in equitable distribution, the recipient's inability to become self-supporting based upon the abuse of the payer, and others, including a catch all "any other factors that a court deems relevant and material."

 

  • The case law regarding cohabitation would essentially be codified.  Specifically, alimony could be modified, suspended or terminated if the other party has cohabited for 3 months.  Economic dependence would still be considered.  In addition, if suspended and the cohabitation ends, alimony could be reinstated, but the original terms cannot be extended.

 

  • Rehabilitative alimony cannot be for more than 5 years.  The case law regarding extending rehabilitative alimony would seemingly be codified to allow it to be extended if the recipient attempted to become self supporting but was unable to do so because of unforeseen events and, extending it would not constitute an undue burden on the payer.

 

  • Presumptive schedules for duration would be established, as follows:
    • 0-5 years - not more than half the number of months of the marriage
    • Greater than 5 years to 10 years - not more than 60% of the number of months of the marriage
    • Greater than 10 years to 15 years - not more than 70% of the number of months of the marriage
    • Greater than 15 years to 20 years - not more than 80% of the number of months of the marriage
       
    • More than 20 years - the court has the discretion to award alimony for an indefinite amount of time.

 

  • If you think that indefinite means permanent alimony, think again because alimony shall terminate upon the payer obtaining full retirement age which is defined as when the payer is eligible for the old age retirement benefit under the Social Security act.  Arrears accrued to that point would still be due and owing.  The payer's ability to work or decision to work past the retirement date shall not constitute grounds to extend alimony in most circumstances.

 

  • The bill would permit modification of alimony awards existing on the effective date to conform to the provisions of the bill. Limited duration and rehabilitative alimony awards could be modified to conform to the durational guidelines provided in the bill, and permanent alimony awards could be converted to limited duration alimony awards and modified to conform to the durational guidelines for limited duration alimony. A motion for modification could be brought by either party to the award and the moving party would not need to show a change of circumstances to receive a modification. The bill additionally provides that its enactment would not constitute a change of circumstances for the purposes of modifying the amount of an existing alimony award and it would not permit modification of an award that the parties previously agreed could not be modified.

Is this really a radical change, or in many respects, does it simply codify what is often done in practice anyway?  Will it really take away advocacy when circumstances so require?  More on these questions in a later post. 

 

Stay tuned for that and updates on the progress of this proposed statute.

 

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com .

Women Can Pay Alimony Too

Yesterday's New York Daily News published an article indicating that 28% of wives out-earn their husbands according to an analysis of Census Bureau data by USA Today.  The article goes on to state that, despite these advances, women still lag men in the highest levels of their chosen fields

 

Given the reality of many women earning more than their husbands, the logical corollary is that many more women will have to pay alimony to their husbands.  Makes sense right?  As we know, the New Jersey alimony statute is gender neutral as is the case law that interprets the statute.

 

But how does the woman, who for the first time hears that she may have to pay alimony react to that news and how does a man's request for alimony play in the court of public opinion?  Usually, not well.  Despite the desire for gender equality and the law being gender neutral, many people still believe in the notion that only women get custody and only women get alimony.  In fact, some of my most difficult cases have been cases where the husband has made a claim for alimony.  These cases were not close calls either.  These were cases where if the parties were reversed, it was a no-brainer, slam dunk, unquestionable alimony case.   This even happens in cases where the husband was a stay at home parent. 

 

A frequent refrain heard in these cases, usually by the wife who doesn't want to pay or her family and friends is "what kind of man seeks alimony."  Do you ever hear similar insults when a woman is seeking alimony?  I haven't.

 

This news story highlights that as women continue to out earn their husband's and traditional gender roles become old news, that more and more women will be called upon to pay alimony, barbs aside.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com .

WOMAN OBTAINS DIVORCE DUE TO HUSBAND'S SMALL MANHOOD

In a story likely to make men worldwide a bit more insecure about themselves, a Taiwanese woman recently procured a divorce from her husband, in part, because he had a small penis.  Making matters worse was the wife's quote that "His penis is so small, like a kid's, only 5 centimeters long.  We've never had sex in our entire marriage."  

 

Likely in an effort to keep his parts private, the husband allegedly refused to have sexual intercourse with his wife prior to the marriage, citing religious reasons.  It was only on the parties' wedding night when the wife first discovered the "issue."  Notably, however, the wife also claimed that the husband was impotent and unable to fulfill his responsibility as a husband (in a response that most men could not argue with, the husband simply preferred to fulfill his duty in the morning, and was too tired when she came calling at around midnight).

 

 

This case brought to mind the recent matter, also subject to tabloid fodder, where a man was granted a divorce because he claimed his wife was ugly.  His claim was that their child looked nothing like the wife, and it was then that the wife revealed that she had undergone massive plastic surgery to make her more physically attractive.

 

Are these cases on the far side of bizarre?  Absolutely.  Do they provide the sort of subject matter that the New York Post, Huffington Post and Daily Mail feast on for readers.  Certainly.  How then, can they possibly relate to New Jersey law?  Well, as we have blogged about in the past, New Jersey is a "no fault" state, where people typically obtain a divorce based on irreconcilable differences without getting into such tawdry claims like a man's package size or a wife's looks.  

 

These types of claims, however, may be a basis for an annulment in New Jersey.  As many readers may know from the ongoing Kardashian/Humphries saga, an annulment nullifies the divorce retroactively, as if it never happened.  New Jersey's annulment law may be based on several claims including bigamy, duress, lack of age (non-age), incapacity, impotence, incest, and fraud.

 

Without getting into the details of what each of those options means, for the sake of this post and the husband's dignity, we can focus on the claims of impotence and fraud.  Here, aside from the husband's alleged lack of stature, the wife also claimed that the husband was impotent and unable to fulfill his husband-type duties.  The wife added that she did not discover this to be the case until the parties' wedding night.  In New Jersey, she could, as a result, potentially have a claim for an annulment based on the husband's impotence.  Whether such a claim, or that with the so-called "ugly" wife could fall under a claim of fraud is a stretch, but so are the facts of these cases.

 

While I am not sure what lessons can be learned here, one thing that can be said for sure is that, thankfully, in New Jersey, it is not the size that matters.

 

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com

"RESOLVING" A DOMESTIC VIOLENCE MATTER - A CAREFUL BALANCING ACT

We have written before on the topics of the use and misuse of the Prevention of Domestic Violence Act, and representing a litigant in a domestic violence matter.  Within the past few weeks, a few experiences have brought this topic back to the forefront, and I thought that now was a good time to address the issues, especially in the context of "resolving" such matters.  As a family law attorneys, we frequently encounter domestic violence as a component of our practice.  Whether it happens in the context of an ongoing divorce, entirely independent of a marital relationship, or something different altogether, each case is certainly different from the next, and each case resides on its own motivations, so to speak.  

What I mean by that is, the Prevention of Domestic Violence Act is a vital piece of legislation designed to protect actual victims of domestic violence.  Countless matters come across our desks involving legitimate, truthful victims in need of the law's immediate protection from an abusive defendant.  Some of the most difficult matters involve those where we represent real victims with tragic fears of harm, including those who are immersed in the cycle of violence looking for a way out.  Considering the risk to such a victim if a final restraining order is not granted, the import of the litigation is vital.

On the other hand, many cases - typically in the context of an ongoing divorce matter - involve a litigation-minded spouse simply looking to get the proverbial "leg up" over the other spouse in that separate, but related matter.  Since the law is liberal in its protection of victims, it is often quite easy to procure a temporary restraining order, where the alleged victim can seemingly state whatever allegation he or she deems appropriate so long as it results in procuring a TRO.  There are several well known cases addressing the judiciary's obligation to look out for those litigants who are trying to use the law to his or her advantage, as such an occurrence is unfortunately all too common. 

For example, where two parties are engaged in a custody dispute, New Jersey's custody statute and law dictates that a final restraining order against one party results in a presumption that the victim will procure custody of the child.  Similarly, two parties often live in the marital home during a divorce, either because neither party wants to leave, neither party can afford to leave, etc.  A restraining order against one party will - at least temporarily - force that party to leave the home.  From there, the so-called "victim" can use the temporary situation as leverage to keep the other spouse out of the marital home. It is because of such potential incidents that Eric Solotoff, in the "use and misuse" blog entry referenced above, suggests the use of a recording device to document the truth of what transpired.

 

What do I mean by leverage, especially since such a term seems completely incongruous with domestic violence?  As a threshold matter, it is important to understand that a domestic violence matter cannot be settled or resolved, which is why I used quotations around "resolving" in the title to this entry.  The law, however, does allow for an interesting device by which the victim may voluntarily withdraw his or her domestic violence and enter into a consent order with the other party that incorporates into the order what are commonly referred to as "civil restraints."  

 

Essentially, all of the restraints and protections contained in the restraining order can be transferred to an order - mutually agreed upon by both parties - and entered by the trial judge in the divorce or custody/support matter, rather than the domestic violence judge.  Defendants generally prefer this type of arrangement because it removes the risk associated with having a final restraining order entered against them, with all of the penalties/negatives associated with such entry.  It is this preference, however, upon which alleged victims will often rely to procure additional relief under the threat of a final hearing against the significant other.

 

This form of order cannot be entered into the domestic violence matter, especially since a component of this type of arrangement involves the voluntarily withdrawal and dismissal of that matter.  The differences between a final restraining order and the consent order include, but are not limited to, enforcement (a violation of the final restraining order can result in a criminal charge, while a violation of the consent order is addressed by a way of a motion for enforcement, with potential monetary relief), and the ability to include a wide range of terms in the consent order that would not otherwise be found in the restraining order.  For instance, where an incident of domestic violence is alleged at or near the outset of a matter, the alleged victim will often attempt to procure all sorts of interim financial or custodial relief that would otherwise have to be sought by way of a motion for pendente lite relief.  

 

Negotiating with a cloud of domestic violence allegations hanging overhead is not your typical negotiation, for sure.  At any time, negotiations can break down and the matter will proceed to the final hearing on the domestic violence complaint that everyone was trying to avoid.  Considering the issues at hand, one party reneging on the terms of an agreement can typically do so without consequence - simply put, it is highly unlikely that a trial court would ever enforce the terms of a settlement agreement against either party when allegations of domestic violence are involved. 

 

Even worse, a strong set of allegations against a defendant really pushes that party's back up against the wall - i.e., proceed to a final hearing with the risk of the final restraining order in view, or concede to all sorts of language in a consent order that the other party would likely never have procured without the existing allegations of domestic violence.  At the end of the day, it is an emotionally charged and difficult high wire act where the wrong statement, step, or proposal can result in the breakdown of the negotiating process and commencement of the final restraining order hearing.

 

Thus, while a domestic violence matter can be "resolved," the settlement picture is often a lot more crowded, complicated, and even potentially strategic than one would think.  Having experienced legal counsel to guide you through this process, whether you are the victim or the defendant in a domestic violence matter, is critical.  The stakes are too high not to know and understand your rights in this area of family law.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com

THE MORNING AFTER THE DIVORCE CASE ENDS - A CAUTIONARY TALE

Following up on my most recent blog post discussing pressure tactics used by one spouse against the other to force an inequitable settlement, I wanted to focus on the example where one spouse tries to "get around" the lawyers to privately discuss settlement with the other spouse.  In my prior entry, I noted that a financially superior spouse will often take this tack to impose his desired terms of settlement upon the other spouse.  The day after the Court enters a Judgment of Divorce ending the marriage, the financially inferior spouse wakes up and regrets the deal she just made.

While I am not generally against the notion of spouses talking to each other in an effort to resolve their matter, the involvement of lawyers is key for conveying notions of what is fair or unfair.  Here are a few questions that come to mind:

1.  How do you know whether the alimony and child support are fair?

2.  How do you know whether the equitable distribution is fair?

3.  How do you know what is an appropriate custody and parenting time arrangement?

4.  How do you know what you are entitled to under the law as a spouse, parent and litigant?

I recently had a case where, no matter how many times I asked the other lawyer to convey to her client not to discuss the terms of settlement with my client, he continued to do so.  What was my concern?  Well, each time my client came back to me with allegedly agreed upon terms of settlement, they seemed to get worse and worse for her.  I would then advise her on what I thought was fair and unfair, and made suggestions as to a response that I should make to his lawyer, rather than my client to her spouse directly.  I then wouldn't hear any response from the other lawyer, but, like clockwork, the husband would call my client and berate her for what she proposed through counsel.  

At the end of the day, my client simply gave in to the husband's financial pressure and took a deal that was against my recommendation.  She was not interested in litigating the matter to learn more about his finances, what he really could and could not afford to pay (even though he admitted during a settlement conference to a far higher income than that set forth in his formal settlement position), and was not interested in hearing from the Early Settlement Panel or a mediator what she was actually entitled to, or what was reasonable.  She knew that there was a very good chance that she was going to wake up the next morning and regret when she signed the settlement agreement.  It was the husband's relentless pressure and refusal to bend on any issue, though, that ultimately carried the day.  Clearly, he knew she would cave if he put enough pressure on her.

What is the lesson to be learned here?  While the short-term resolution of your matter might lift a great weight off of your shoulders in the short-term, it is the long-term damage that you may have caused for yourself that you will live to regret.  Taking the time to work with a divorce lawyer to know and understand your rights, and what the potential long-term impact of settlement will be is not a sign of wanting to spend money on lawyers and "fight" in court.  Rather, it is usually a thoughtful way of proceeding to protect yourself, your children, and your future.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com

Deion Sanders Wins Custody Super Bowl

All over yesterday's news, including the Dallas Morning New, were reports that Deion Sanders won his custody trial.  As reported, Deion received sole custody of his two sons with his wife, Pilar.  The parties also were awarded shared custody of their daughter.  In English, Deion will make all educational, health and extracurricular decisions for his two sons, ages 11 and 13, and the parties will share that responsibility for their 9-year-old daughter

As these things tend to be, this was a nasty custody fight, with Pilar making allegations of abuse and Deion alleging that this was all about the money. 

For a New Jersey divorce attorney, what is also interesting about this case is that it was decided by a jury of 7 women and 5 men.  The concept of a jury deciding custody, or for that matter, any family law issue other than perhaps (but not always) a marital tort, is completely foreign in New Jersey and most jurisdictions.  In fact, other than perhaps Georgia, I am unaware of any other jurisdiction where there are jury trials for custody.  New York used to have jury trials to decide a contested divorce - i.e. whether the fault cause of action had been proven.  I suspect that this too is largely a thing of the past since no-fault divorce was recently enacted in New York, as previously noted on this blog.

In New Jersey, typically custody decisions take weeks if not months to get a decision from a judge.  In the Sanders case, the jury deliberated for less than two hours.  In New Jersey, the decision is determined less by the he said/she said, mud slinging, and more upon the testimony of one or more custody experts.  Moreover, as noted in my blog post last week entitled Custody - Back to Basics, the decision must consider the 14 factors set forth in the custody statute.

Interestingly, when asked under cross examination if he would call his wife during an emergency, Deion answered, “As long as all of this is going on, I will not communicate with her,” He also testified that  he stopped counseling because he felt it was a way for Pilar Sanders to gain a “competitive advantage” in the trial and find things out about the children.

I recently posted a blog entitled "How Can There Be Joint Legal Custody If the Parties Cannot Cooperate and Refuse to Communicate."  That seems particularly apropos when considering the Sanders case.  However, again, should the custodial parent's refusal to communicate create a fait accompli leading to an award of sole custody?

Also interesting is that Deion was apparently tweeting from the court room.  In fact, he tweeted that his attorneys would cross-examine Pilar Sanders and “catch her in a multitude of lies.”  While this may have been true, given the media coverage, and the digital age where things will last forever on the internet, one wonders why either would disparage the other to the media when the kids will be able to see it now and in the future. 

Finally, this trial only resolved a piece of the litigation.  Parenting time has not been resolved nor have the finances.  Stay tuned for the next game in this divorce Super Bowl.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

UNDER PRESSURE - WHAT DO YOU KNOW?

All too often one spouse will pressure the other to settle an ongoing case, using finances, custody, or some other issue to force an inequitable end to a matter.  This comes up all the time, yet the pressured spouse frequently doesn't realize that it is happening, whether it is because she trusts her soon to be ex-spouse, is scared (or simply does not want) to litigate to obtain what is fair and reasonable, or for a variety of other reasons.

So what type of comments/efforts will one spouse make to pressure the other spouse into a settlement?  For the sake of brevity, I provide a list of ten fan favorites below, although the list could likely go on and on without end.  

1.  You are going to have to start cutting back on your (not his) lifestyle expenses or else we are not going to be able to afford to litigate this matter.  While in some cases this may be a true statement, I find this one particularly obvious and offensive in cases where there is more than enough income and assets to litigate and maintain the marital lifestyle for both parties.  

2.  You are going to cause us to go to trial (alternatively, "my lawyer told me that I am right, so I would rather go to trial than give you what you want").

3.  Do you really want to drag the kids into the middle of a (legitimate) custody dispute?

4.  I will give you what you want on custody and parenting time so long as you give me what I want financially.  This example is particularly common, but the issues should not be intertwined.

5.  Your lawyer is preventing us from settling (alternatively, "I want to try to work this out with you privately and impose my terms without your lawyer getting in the way").

6.  My income this year is not going to be what it once was, so we really cannot afford to litigate this matter.  (see also prior blog posts on Rapidly Acquired Income Deficiency Syndrome "RAIDS")

7.  I would rather pay my lawyer than pay you.  This classic line really has no bearing on the outcome of a support or equitable distribution issue, and, in fact, provides a compelling argument by the supported spouse for counsel fees due to the payor spouse's unreasonable conduct.

8.  The act (or repeated act) of violating an interim support ("pendente lite") Order requiring payment for various expenses.  This form of non-compliance forces the supported spouse to determine whether she wants to continually file costly motion after costly motion to address the payor spouse's non-compliance, or simply give in and surrender in the matter.

9.  Threatening the supported spouse that if she does not agree to go to mediation, she will "regret it".

10.  Any type of what is commonly known as "Divorce planning", ranging from ensuring a reduction in income (see #8, above), spending down assets, hiding assets, or engaging in any course of wrongdoing geared towards the divorce matter.

The possibilities are really endless, so it is important that you keep an eye out and understand that each of the above examples may (and I say "may" because some of the above claims may be truthful and legitimate) be designed to do nothing more than pressure you into an inequitable settlement that you may regret having to live with when you wake up the morning after that final judgment of divorce is entered by the Court.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com

Coerced Prenuptial Agreement Set Aside

How many prenuptial agreements have language in them that the parties are entering into the agreement free from duress, coercion, undue influence, etc?  The answer is all of them.  Some even ask people to waive fraud - how you can do that I don't know because if you knew you were being defrauded, you probably wouldn't enter into the agreement.  How many times is the agreement presented at the last minute, after the bride to be's parents are out tens of thousands of dollars for the wedding?  How many times does the person presenting the agreement say "Don't worry about it, it doesn't mean anything", "don't worry about it, I'll give you more" or "don't worry about it, I'll rip it up in 5 years or after we have kids, etc?" 

This probably happens all to often or at least, more often then we want to believe.  In most cases, since you have said you have entered into the agreement free from duress, etc., you will have a hard time getting out of the agreement at the time of divorce.

But alas, comes the Petraikis case out of New York discussed in yesterday's New York Post.  In this case, Elizabeth argued that Peter coerced her signature, threatening to call off the wedding even though her father had already paid $40,000 for the reception.  She also claimed that he told her that he would rip up the agreement as soon as they had children.  The trial court set aside the prenup on the basis that Peter fraudulently induced Elizabeth to sign it.  The Appellate Court upheld this decision.

In New York, prenups are usually particularly hard to overturn so many deem this to be a landmark decision.  The take away here is that despite the recitations in the agreement, the door is open to try to prove contrary behavior and/or that there were additional promises outside of the agreement.  One wonders whether a video taped signing with the usual questions that the agreement was voluntarily being entered into would have saved the agreement.  That said, for the proponent of the agreement, you need to be really careful about what you say to induce the other side to sign an agreement and what pressure is put on to get an agreement signed.

 

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

 

Alimony - Back to Basics

We have done dozens of posts on this blog about alimony over the last 5 years.  Recent experiences have convinced me that it is time to get basics. Despite all of the cases that say that you can't use a formula (the rule of thumb we have discussed previously on this blog), more and more, people are espousing a blind adherence to the rule of thumb.  In one recent case with income of a few hundred thousand, an adversary told me that it was the maximum amount of alimony that I can get, despite the fact that it came no where close to meeting my client's already pared down budget.  In another case, where the income was a few million, one side was arguing that the rule of thumb was a minimum, as if there should be no consideration of any other factors.

Despite the calls for alimony reform and formulas, as we have said many times, courts deciding cases cannot use rules of thumb.  Even when they do, they can't tell you that they did.  Rather, they have to review the alimony factors set forth in the statute - remember them?  Here, they are again, from N.J.S.A. 2A:34-23(b):

(1) The actual need and ability of the parties to pay;

(2) The duration of the marriage or civil union;

(3) The age, physical and emotional health of the parties;

(4) The standard of living established in the marriage or civil union and the likelihood that each party can maintain a reasonably comparable standard of living;

(5) The earning capacities, educational levels, vocational skills, and employability of the parties;

(6) The length of absence from the job market of the party seeking maintenance;

(7) The parental responsibilities for the children;

(8) The time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment, the availability of the training and employment, and the opportunity for future acquisitions of capital assets and income;

(9) The history of the financial or non-financial contributions to the marriage or civil union by each party including contributions to the care and education of the children and interruption of personal careers or educational opportunities;

(10) The equitable distribution of property ordered and any payouts on equitable distribution, directly or indirectly, out of current income, to the extent this consideration is reasonable, just and fair;

(11) The income available to either party through investment of any assets held by that party;

(12) The tax treatment and consequences to both parties of any alimony award, including the designation of all or a portion of the payment as a non-taxable payment; and

(13) Any other factors which the court may deem relevant.

Other basics to remember.  The court has to rule out permanent alimony first.  Further, the statute provides that:

If the court determines that an award of permanent alimony is not warranted, the court shall make specific findings on the evidence setting out the reasons therefor. The court shall then consider whether alimony is appropriate for any or all of the following: (1) limited duration; (2) rehabilitative; (3) reimbursement. In so doing, the court shall consider and make specific findings on the evidence about factors set forth above. The court shall not award limited duration alimony as a substitute for permanent alimony in those cases where permanent alimony would otherwise be awarded.

While the amount of limited duration alimony is modifiable based upon changed circumstances ".. or upon the nonoccurrence of circumstances that the court found would occur at the time of the award", the duration is not modifiable "except in unusual circumstances."

While sometimes the "rules of thumb" garner a fair result, other times it does not.  Consideration must be given of all of the factors before blind acceptance of a formula which the courts cannot use in any event.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

NEW ARBITRATION TRACK PROPOSED IN FAMILY MATTERS

There can be many benefits to arbitrating your case, rather than litigating your case through the court system including, but not limited to, a faster proceeding, a more amicable process, decreased litigation costs (despite having to pay the arbitrator), a jointly selected person to preside over your case (perhaps a retired family court judge or an experienced family law attorney), and greater privacy in your matter (especially encouraged in matters involving potential tax issues).  In a move designed to further the use of this private, alternative dispute resolution method between parties in family law matters, the Supreme Court of New Jersey Family Practice Committee has proposed a new "arbitration track".

Interestingly, this new rule would allow the court system to still keep an eye over your matter, impose time limits on the length of the matter, provide specific procedures for parties to follow, and actually incentivize parties to consider this method by giving priority to an arbitration, as if it were an actual trial.

 Presently, Rule 5:1-4 of the Rules Governing the Courts of the State of New Jersey establishes different "tracks" for each family case:

1.  Priority track if the matter involves contested custody or parenting time issues.

2.  Complex track if the matter appears likely to require a "disproportionate" expenditure of court and litigant resources in preparation for trial and at trial due to the number of parties, number of claims/defenses, legal difficulty of the issues, factual difficulty of the issues, the length/complexity of discovery, or a combination of all of the above.

3.  Expedited track if it appears that "it can be promptly tried with minimal pretrial proceedings, including discovery," as further detailed in the rule.

4.  Standard track if the matter does not qualify for any of the other three tracks listed above.

You might ask the question - how and when will a court know what track my case should be assigned to.  Well, the rule provides for that too - "as soon as practicable after all parties have filed Family Case Information Statements," (a required document detailing income, assets, liabilities, and budgets) or after a Case Management Conference (a status conference with the court), whichever is sooner.  The parties may also often agree on what track to assign to their case.  Importantly, if the parties agree to a track, the matter will not be assigned to a different track except if there is "good cause" to do so.

The proposed Arbitration Track would be added to this rule, "in the event that the parties enter into a written consent order or agreement to arbitrate issues presented in actions pending before the Family Part."  Straying from the provision above allowing the parties to demonstrate "good cause" in support of a different track assignment or reassignment, a matter on the arbitration track cannot be reassigned even if good cause exists to do so.  Essentially, once you have decided to go down the arbitration track, it is not easy to get off.

Certain notable conditions/prerequisites proposed by the Committee include:

1.  Requiring each party to execute a proposed Arbitration Questionnaire (recommended for inclusion in the Appendix to the Court Rules) prior to executing an agreement or consent order to arbitrate.  Each party's questionnaire would be attached to the agreement or consent order, demonstrating that each party understood the implications of the agreement to arbitrate.

2.  Mandating that no arbitration shall be pending for more than a year following arbitration track assignment (which may be modified on this issue for good cause shown).

3.  Arbitration track cases should be given "scheduling consideration" when fixing trial dates in other matters - an interesting incentive as I highlighted at the outset.

4.  The required certification pursuant to Rule 5:4-2(h) shall indicate that the parties have a written agreement to arbitrate.

The proposed procedure covers all agreements to arbitrate family matters between "parties to any proceeding arising from a family or family-type relationship", except when the matter involves a) the annulment or dissolution of a relationship; b) actions involving the Division of Child Protection and Permanency; c) domestic violence actions; d) juvenile delinquency actions; e) family crisis actions; and f) adoption actions.  

As to an arbitrator's award, the rule proposes:

1.  Unless the agreement or consent order provides otherwise, "any interim award of the arbitrator shall be subject to confirmation by the court in accordance with R. 4:42-1(b)."

2.  Unless the agreement or consent order provides otherwise, "the final award of the arbitrator shall be confirmed pursuant to the procedures set forth in N.J.S.A. 2A:23-1, et seq. and/or N.J.S.A. 2A:23B-1, et. seq."

Thus, it appears that the arbitration agreements will still allow parties to decide what issues will be subject to arbitration and even the degree to which an arbitrator's award will be subject to court confirmation.   A sample written agreement and the proposed questionnaire are also provided.  

It is in the sample agreement where the parties can determine the scope of the arbitration, and wherein it indicates that the matter will remain in the court system while arbitration proceeds pursuant to the proposed time limits.  The proposed agreement also contains language as to arbitrator costs/payment, discovery, the right to review of an arbitrator's award, evidence rules, and the arbitrator's authority.  

Comments on the proposed rule are due by April 1, 2013.  It will be interesting to see if and how proposed track proceeds, and how it will impact upon parties use of alternative dispute resolution.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com

HOW CAN THERE BE JOINT LEGAL CUSTODY IF THE PARTIES CANNOT COOPERATE AND REFUSE TO COMMUNICATE?

Early in case where children are involved, we discuss the different types of custody.  There is residential custody - i.e. who the children live with and the resulting parenting time for the other parent. Then there is legal custody which is decision making regarding issues of the health, education, religion and general welfare of the kids.  in 99% of the cases, the parties will share joint legal custody - it is usually a no brainer.  in fact, In the New Jersey Supreme Court’s seminal decision of Beck v. Beck, 86 N.J. 480, 497-501 (1981), the Court stated as follows with regard to whether joint custody should be awarded:

At a minimum both parents must be ‘fit’ that is, physically and psychologically capable of fulfilling the role of parent.

That said, the minimum requirement of joint legal custody is the ability to communicate and cooperate on some basic level as it relates to the best interests of the children.  The Court in Beck further noted:

The judge must look for the parents’ ability to cooperate and if the potential exists, encourage its activation by instructing the parents on what is expected of them. . . [W]hen the actions of [an uncooperative] parent deprive the child of the kind of relationship with the other parent that is deemed to be in the child’s best interests, removing the child from the custody of the uncooperative parent may well be appropriate as a remedy of last resort.

Again, in Beck, the Supreme Court of New Jersey has written:

The most troublesome aspect of a joint custody decree is the additional requirement that the parents exhibit the potential for cooperation in matters of child rearing. This feature does not translate into a requirement that the parents have an amicable relationship. Although such a positive relationship is preferable, a successful joint custody arrangement requires only that the parents be able to exclude their personal conflicts from their roles as parents and that the children be spared whatever resentments and rancor the parents may harbor. Beck v. Beck, 480, 498 (1981).

But every once in a while, we have those cases where there is just no ability to cooperate, and where joint legal custody will be used as a tool of harassment and control.  The case of  Nufrio v. Nufrio, 341 N.J. Super. 548 (App. Div. 2001) was one of those cases.  In that case, the court found that joint legal custody would not be in best interests of child because the parents were un-able to agree, communicate, and cooperate in matters relating to health, safety, and welfare of child.  But there was more to it than that.  The court found:

...Although the judge has provided defendant with significant parenting time with his son, the findings of the judge make it clear that any form of “joint” custody or shared decision-making will be detrimental to the parties' child. The concern that the defendant would use the label of “joint legal custody” as a disguised attempt to harass plaintiff through re-peated applications to the court has support in the record. Such a situation would clearly be detrimental to the best interests of the child.

 

Again, we have all had those cases where there will never be communication and never be cooperation.  What do we do?  What if it is primary custodial parent that refuses to communicate and cooperate?  Is it fair to let that parent's aberrant conduct defeat joint legal custody?  Probably not.  Maybe a parent coordinator can help.  Maybe the answer is to vest decision making in the parent of alternate residence.  However, when it is the parent of alternate residence that refuses to communicate and/or cooperate, some times, sole legal custody may be the only way to go.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

MOM INSULTS SON ON FACEBOOK - LOSES CUSTODY

There is never a shortage of new and interesting stories involving social media that impact upon our world of family law.  We have previously blogged about what NOT to do online, because there may be a spouse ready and willing to use such online postings, pictures and the like against you in your divorce proceeding. 

Apparently the Mom in the case of Melody M. did not read our blog posts. In a decision from a New York appellate court that garnered enough attention that I first read about it in the New York Daily News, Mom lost legal custody of the children for being mean to her oldest child on Facebook.

The basic facts were relatively straightforward.  The parties entered into a separation agreement in 2006 providing for joint custody of their three children, with "alternating physical placement."  In 2009, the parties stipulated to continuing joint legal custody, with Dad having primary physicla custody and Mom having scheduled parenting time for an evening each week and on weekends during the school year.  In 2010, Mom commenced the first proceeding to increase her parenting time.  Dad opposed the requested modification, and, among other things, sought his own form of modification by requesting that he be granted sole legal custody of the children.

In granting Dad's request for sole legal custody, the Family Court found a change in circumstances based on what it deemed was a "sufficient deterioration in the parties' relationship . . ." In determining what legal custody situation would be in the best interests of the children, the Family Court noted that Mom had engaged in a "pattern of inappropriate behvavior" that had an impact on the oldest child, who happened to also have mental health issues and received counseling. Aside from not participating in the counseling, failing to heed the counselor's recommendations, and often asking Dad to pick up oldest son during her parenting time because she had difficulty in dealing with the child's behavior, Mom also testified to swearing and yelling at the child, as well as using "physical means" towards him.

It is here when the case then took a turn towards the more unusual, as the Family Court also noted that Mom utilized Facebook "to insult and demean the child, who was then 10 years old, by, among other things, calling him an 'a-shole'." Even worse, Mom actually testified "without remorse" that she called her son that expletive on Facebook because that is what "[h]e is" and thought it important for her Facebook friends to know. Encapsulating Mom's testimony, the Court concluded that "charitably stated," Mom's testimony "reflected a lack of insight as to the nature of her conduct toward her oldest child."

The Court even went so far as to impose an Order of Protection against Mom, precluding Mom from posting anything to or about her children.on any social media site, even of a positive nature.

While this case was out of New York, it could certainly apply in New Jersey as well. Mom's conduct here was abhorrent, especially considering the age and mental troubles of the child to whom her postings were directed. It is a simple reminder, though, that anything you do, say, or think online can be used against you in a family law proceeding, whether it be divorce, custody, domestic violence, and the like.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com

DOES NEW DECISION STRETCH RELOCATION STANDARD TO ITS LIMITS? NOT SO FAST...

In the newly published decision of Benjamin v. Benjamin out of the Ocean County Family Part, which has released several reported decisions within the past few years, the court held that having a guaranteed job in another state is not a mandatory prerequisite for it to approve a custodial parent's request to relocate to another state with a child born.  The court did hold, however, that the "likelihood that the custodial parent can provide the child with a financially stable household in the new state, including obtaining employment as necessary is relevant in determining whether a proposed relocation is reasonable or inimical to a child's interests."

On first blush, the court's statement that the primary residential custodian has the right to seek relocation almost suggests that such a right is automatic.  A closer read of the decision and its ultimate holding, however, indicates that the standard fits within the existing relocation standard. 

The parties were divorced in 2008 and agreed in a settlement agreement that mom would be the child's primary residential custodian.  In 2012, mom filed an application to relocate with the child to North Carolina, which dad objected to by filing a cross motion seeking a transfer to him of residential custody.  One of dad's arguments was that mom did not have a job in North Carolina, which would inure to the child's financial detriment.

Noting that there is no express requirement of employment in the new location, the court went through the relocation factors provided by the Supreme Court in Baures v. Lewis, which apply when considering the request of a primary custodian to relocate (notably, the standard is simply the best interests of the child when the parents have joint residential custody and one parent seeks to relocate with the child).  

The requesting parent must prove that 1) there is a good faith reason for the move, and 2) the proposed move will not be inimical to the child's interests.  Within that standard, the court must analyze the following factors:                               

1.  the reasons given for the move; 

2.  the reasons given for the opposition; 

3.   the past history of dealings between the parties insofar as it bears on the reasons advanced by both parties for supporting and opposing the move; 

4.   whether the child will receive educational, health and leisure opportunities at least equal to what is available here; 

5.    any special needs or talents of the child; 

6.    whether a parenting time schedule and communication schedule can be developed that will allow the non-custodial parent to maintain a full and continuous relationship with the child; 

7.    the likelihood that the custodial parent will continue to foster the child’s relationship with the non-custodial parent if the move is allowed;  

8.    the effect of the move on extended family relationships here and in the new location; 

9.    if the child is of age, his or her preference; 

10.   whether the child is entering his or her senior year in high school at which point he or she should generally not be moved until graduation without his or her consent; 

11.   whether the non-custodial parent has the ability to relocate; and 

12.   any other factor bearing on the child’s interest. 
 

In addressing the requirement of procuring employment in the new state, the trial court took judicial notice of the economic downturn and rationally provided:

As noted, nowhere on this list is there a specific, mandatory requirement of guaranteed, out-of-state employment before a court can grant a removal application.  For certain, there are many hypothetical factual scenarios where there would be little practical sense in imposing such an absolute pre-condition upon every custodial parent’s ability to move.  For example, if a moving parent (a) has significant financial support from other family members such as parents or a new spouse, or (b) has traditionally been a homemaker with young children and no remarkable work history, or (c) is disabled and out of the labor force, or (d) is independently wealthy, then in such instances there may be no compelling basis to require mandatory employment for such an applicant. 

Even in cases where none of the above scenarios exist, however, there is still a  fundamental problem with imposing a requirement upon every moving party to first demonstrate a guaranteed offer of employment in the new state. As the parties in this case have learned firsthand, there is often an unfortunate time gap of many months between the date a custodial parent files a motion for relocation and the date a court can actually adjudicate the matter with finality.  Because of this gap, it is often highly impractical for a custodial parent to obtain a concrete job offer from an out-of-state employer when he or she does not even know if and when court approved relocation may occur. 
 

Ultimately, the trial court created a somewhat new standard by which to analyze the financial impact of a primary custodian's relocation, even though, at the end of the day, the standard falls within the broad standards of the factors enunciated above.  The court provided:

The most practical and relevant inquiry is not whether the moving parent has a guaranteed job, but rather  whether  she has a reasonable plan for providing the child in her care with an economically stable home in the  new state.  In such an analysis, a party’s employability, and work history are relevant to the overall financial reasonableness of the custodial parent’s relocation plan.  As set forth in Baures, supra, 167 N.J. at 117, the final factor for consideration is “any other factor bearing on the child’s interest.”  This extremely broad language permits a court of equity to exercise its discretion to consider points and issues beyond those expressly listed in Baures

Interestingly, though, was the court's granting of mom's relocation application based on what appeared to be a very uncertain degree of financial stability:

As noted, defendant does not have guaranteed employment in North Carolina.  However,  the court finds that she is reasonably likely to obtain suitable employment in North Carolina  and create a financially responsible home life there if given a reasonable opportunity to do so.  The court reaches this conclusion for the following reasons:   First, she has a longtime history of steady, stable employment in New Jersey, reflecting positively upon her financial responsibility.  Second, she  has provided evidence that during the course of this case, she sought and was able to obtain at least one offer of  reasonable employment in North Carolina, which would have provided her with a higher starting salary than she presently makes at her New Jersey job.  Third, she has marketable management skills.  Fourth, she presents as an intelligent and articulate individual who is focused and who has a  record of responsibly caring for the child in her court ordered primary care, both financially and otherwise.

The court then noted, however, that mom had a reasonable financial plan because her current husband had a successful career as a department store chain manager with potential employment opportunities in another state; mom had close relatives living in North Carolina who could provide financial assistance and with whom the child had spent a substantial amount of time and ; and, a bit curiously, mom planned on purchasing a home.  As to the last point, it appears that even the thought of financial stability, rather than the potential inability to fulfill that plan, was enough for the court.

Ultimately, the financial situation awaiting the parent and child seeking relocation will always be considered by the court.  "Ifs" "whens" and "maybes" of what that financial situation may be at some point after relocation, though, is a difficult consideration since, as the trial court provided, there is no "crystal ball" to show what will happen.  

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RobertEpstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com.    

De Novo Review of a Parent Coordinator's Recommendation - What a Novel Idea

Aaron Weems is an attorney in our Blue Bell (Montgomery County), Pennsylvania office and editor of the firm's Pennsylvania Family Law Blog wrote an excellent post entitled "Trial Court Must Conduct De Novo Hearings on Parent Coordination Appeals."  As Aaron notes:

 A de novo review means that the Court is taking a completely fresh look at the issue and is not obligated to make or accept the same conclusions, interpretations, or issue the same Order as the prior level did (in this case, the Parent Coordinator); their job is to look at all of the information as though it is brand new to everyone and reach a decision based on the evidence presented.

Isn't that was it supposed to happen in NJ?  Under the now defunct Parent Coordination Pilot Program which we have blogged on many times in the past, recommendations of a parent coordinator, if accepted, were to immediately become a court order. However, either of both parties objected, either or both could bring the matter to the court for review.  That said, it really wasn't a de novo review because the court would have the recommendation made by the parent coordinator.  All too often, thought the judge is not supposed to defer to the parent coordinator, this is exactly what happened. 

So bravo to Pennsylvania for requiring a true de novo review, where judicial authority is not abdicated to a third party and evidence is actually considered.  On the other hand, a malevolent party will object to every recommendation, totally vitiating the purpose of a parent coordinator in the first place, and causing the other party to incur fees, first for the parent coordination and then for the inevitable subsequent litigation.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

DO YOU KNOW THE LAW BEHIND YOUR OWN CASE?

Recently I posted about questioning whether your own attorney knows what he is doing and, as part of that question, whether the attorney knows the law surrounding your divorce or related family law matter.  A related question worth discussion is whether you know and understand the law and how it impacts your case.

With busy schedules filled to the brim with jobs, childcare responsibilities, and other daily stressors, I do not want my clients to undertake the unnecessary burden of purchasing a family law textbook and learning its contents front to back.  I do, however, encourage my clients to at least become familiar with the main points of the law.  For instance, most clients seem to know the general principles of equitable distribution in New Jersey - i.e., most assets, under the law, are subject to a 50/50 distribution absent any other factors, credits, or details; most clients also know, and readily offer, his or her awareness of New Jersey's permanent alimony option. 

It was a recent incident that brought this issue to my attention.  During a first meeting with the parties and a custody expert in a very acrimonious matter, the expert asked one spouse whether her lawyers had explained to her the law of relocation.  She answered "no," despite relocation being one of the primary issues in the case and her desired result.  The expert then asked if her attorneys had made her aware of the Supreme Court of New Jersey's decision in Baures v. Lewis, and the Appellate Division's decision in O'Connor v. O'Connor, each of which are seminal cases on the issue of relocation.  The wife answered "no" to each.  Our client, by contrast, was aware of these cases because we took the time to advise him of the cases, and explain their underlying principles.  The expert then directed the wife to ask her attorneys to explain to her the law and those cases.

What is the lesson to be learned here?  If your client is going to spend tens of thousands of dollars, if not more, litigating an issue, make sure that he or she understands the law.  If there is a lack of understanding, or lack of awareness, then how is he or she supposed to know whether their position is reasonable, whether it is worth litigating over, and whether to settle?  An informed client better knows the risks, perils, pitfalls, and chances of success, no matter what area of law is involved.  In family law, where the stakes are often higher and more emotional, it is even more critical. 

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com.   

SHOULD THE OTHER PARTY BE ALLOWED TO HAVE PARENTING TIME WITH HIS NEW GIRLFRIEND PRESENT?

Clients frequently ask whether it is appropriate for his or her spouse to exercise parenting time with the children in the presence of the new significant other.  The questions usually go something like this:

  • Can she be there when the kids are there?
  • Should they be sleeping in the same room with the kids right down the hallway?
  • How can he be there with the kids when I have not met him?
  • Does this impact our custody and parenting time dispute?
  • Are the kids going to get mixed messages?
  • Should we bring this to the court's attention and, if we do, will the judge even care?

These are just a few of the questions that may arise when your spouse starts dating someone in the middle of the divorce and wants to introduce the children to that person, have parenting time with that person present and, perhaps, have overnight parenting time with the kids just a few feet away in the room next door. 

With the changing times come changing attitudes towards such parenting time.  Exposing the children to a new girlfriend or boyfriend is not nearly as taboo as it once was, and, at least in New Jersey, it is generally accepted.  While this is an issue that can always be discussed between the parties and counsel, and while there are always certain cases where a judge might think twice about exposing the children to a new significant other, such as if there is a suspected harm to the children in doing so, there is usually no longer an issue. 

I find that judge's are less willing, however, to allow overnight parenting time, at least during the divorce, depending on a variety of factors including, but not limited to, the circumstances surrounding the new relationship, the sleeping arrangements, and the like. On the more extreme end, I recently had a case where my client's spouse had an affair and then demanded to exercise her overnight parenting time with the children present where the kids were aware of what was going on.  Evaluating the circumstances at issue, the trial judge sensibly precluded the boyfriend's presence during the wife's overnight parenting time. 

However, as opposed to Alabama - as highlighted in Eric Solotoff's recent blog post - such conduct will also likely have little to no impact on a custody dispute.

Thus, while you may dislike the idea of your children meeting the new boyfriend or girlfriend, changing social norms dictate that it is more likely to be accepted than not.  With that in mind, divorcing parents should work together to make the children understand and feel comfortable with the changing situation.  The dating spouse should take caution in how, when and where the children should first meet the new person in their life.  Ultimately, courts are going to watch out for the best interests of the children, and any hint that the situation poses a negative to the children will be immediately addressed as necessary.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group. Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com.  

No One Ever Just Says That Their Client Changed Their Mind

I sit here stewing on this overcast Friday because the other side reneged on the settlement in two matters, after we believed we were all but resolved in both.  Whether or not these were enforceable settlements is a topic for another blog.  That said, one is particularly frustrating because the other side essentially undid a package proposed by them a few mediation sessions ago which been discussed at a few mediation sessions, only to come back with a new proposal that was accepted by my client. 

The problem is that no one ever just says "my client changed his/her mind."  This would be a fine answer especially in situations where we have laid the ground rule that there is no deal until it is signed of by everyone.  Rather than truth, we get hit with lame, absurd, and/or intellectually dishonest explanations as to why there never was a deal in the first place, and/or why the back tracking (a nice way to say bad faith negotiations) was justified.

What are some of the "dog ate my homework" excuses we have heard.

  • My client didn't really understand (Were you, the attorney not there?)"
  • the mediation session was chaotic and ended abruptly (note - no denial that there was a deal)
  • my client didn't believe that any agreements were reached that date (of course, the lawyer isn't saying that there were no agreements reached)
  • "Oh, is that what we agreed to"
  • My client never agreed to that
  • We may be close on the big stuff (how is that when we accepted your offer on the "big stuff")
  • My client was very emotional
  • My client was hungry
  • My client didn't take their medication or took too much medication

I am sure that my colleagues could add dozens more.  That said, if a non-binding settlement is reached, wouldn't it be just better to tell the truth - i.e. my client changed her mind - then create anger and bad feelings spewing nonsense to cover for the acceptable truth?  I'm just sayin ...

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com

Getting Temporary Custody of a Relative Does Not Make You the Psychological Parent

We don't typically post about DYFS (now DCPP) or similar type cases on this blog as we usually focus on divorce and related issues. That said, for fun, I was reading the new cases that were decided yesterday and came upon a case that I found compelling, both because it indicated some systemic problems in custody cases and because it had some real strong language about parental rights - that while stating the obvious, perhaps, did so in a powerful way and in a way that needed to be reiterated. 

The case I'm talking about is  C.D., A.P. and D.D. v. N.D.M.  and A.L.   which was an unreported (non-precedential) decision released by the Appellate Division on January 8, 2013.  In that case, the aunt and grandparents received temporary custody of her niece and a best interest evaluation, to be completed within 90 days, was ordered.  The parties ultimately agreed to a joint expert to do the evaluation,  That evaluation, which by court order was to be completed in 90 days, took more than a year to complete.

SYSTEMIC ISSUE #1:  All custody and best interest evaluations are supposed to take 90 days or so.  That almost never happens.  Rather, it is not unusual for it to take 6 months or longer to get a report.  If it is a joint or court appointed expert, the party who doesn't like the report has the right to get their own report so add another several months to the process.  As in this case, where the mother's custody with her own child hinged upon this report, the prejudice cannot be quantified.

The report was dated July 24, 2010.  On January 3, 2011, the court ordered that the mother get the child back by April 30, 2011. 

SYSTEMIC ISSUE #2:  While not explained, under these circumstances, why did it take from the issuance of the report in July until January to get an order to restore custody to the natural mother vs. third parties?  Too often, adjudication of important issue get delayed breathing life to the old adage "justice delayed is justice denied."

Based upon an apparent failure to comply with the Order and other maneuverings, the child was not ultimately returned until August 2011. 

SYSTEMIC ISSUE #3:  Judges do not always enforce their own orders.  We have blogged about this problem in the past. 

Getting to the custody/constitutional issues, on appeal, the aunt argued that she was the child's psychological parent.  Under the law, once a finding of psychological parenthood is made "the court [must] decide whether awarding custody to the third party would promote the best interests of the child."  In a strong rebuke to that assertion, the Appellate Division held:

During the time that Alice lived with plaintiffs she undoubtedly strengthened her bond with these family members. However, Mother did not consent to plaintiffs stepping into the role of a psychological parent. An aunt or grandparent often
assists a parent to care for a child, both financially and in many other ways
.

Extended family living in one household is common. Parents do not cede their rights as a parent by taking advantage of the assistance of relatives. Mother was never determined to be an unfit parent or to have abused or neglected Alice in any way. Although plaintiffs indicated when they began the litigation that they were seeking KLG, in fact, they did not pursue that cause of action. To obtain KLG over the objection of a parent requires a stringent test including a lack of parental fitness.
N.J.S.A. 3B:12A-6(d). (Emphasis added)
 

In further reference to the psychological parent claim as well as in response to plaintiff's claim that the child should not have been returned to the mother without a hearing, the Appellate Division held:
 

... Nevertheless, Alice was "temporarily" removed from her mother to her aunt's physical custody without a plenary hearing and the removal lasted far longer than the judge anticipated. This extended placement, however, does not convert
Aunt to a psychological parent.
Generally, if as a result of an investigation by the child protective services agency, there is a finding of abuse or neglect and a child is therefore removed and placed with a relative in foster care, that relative does
not become a psychological parent, nor is a plenary hearing required to return the child home to the parent. See N.J.S.A. 9:6-8.54.
 

Parenthetically, the plaintiffs, who were in a far greater financial position than the mother, appealed an award of counsel fees to her.  That award was affirmed.  While not stated, this reminds me of the following quote from Wilde v. Wilde a reported Appellate Division decision on grandparent visitation (which not coincidentally, I was involved in), as follows:

It must be recognized, of course, that a domestic relations proceeding in and of itself can constitute state intervention that is so disruptive of the parent-child relationship that the constitutional right of a parent to make certain basic determinations for the child's welfare is implicated.   If a single parent who is struggling to raise a child is faced with visitation demands from a third party, the attorney's fees alone might destroy her hopes and plans for the child's future.   (Emphasis added).

While no bad motive was necessary ascribed to the plaintiffs here, their failure to comply with court orders was deemed bad faith and their greater financial abilities were noted. 

 While the tragedy of what happened below cannot be undone, it seems that the Appellate judges sent a strong and clear message here. SImply put, helping out a family member by getting or taking temporary custody does not mean that the child is yours.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com

Preparing for the Divorce Process and How to Select a Divorce Attorney

On the heels of our New Years Resolution Divorce post, I thought it made sense to also resurrect our prior posts on preparing for the divorce process and how to select a divorce attorney. 

Previously, Sandra Fava, a contributor to this blog, did a piece on preparing for the initial divorce consultation with a lawyer. We also previously posted South Carolina matrimonial attorney, Mellisa Brown's article entitled "How to Find the Right Divorce Attorney for You."

The process, however, starts even before that. On our web site, we have an advice piece entitled Preparing for the Divorce Process.

Since it is linked to this post, I will not repeat everything contained in the piece. However, the topics contained in that piece are as follows:

  • Speak to an attorney now, not later
  • Selecting the right attorney (including how to get referrals for an attorney)
  • Gathering documentation
  • Preparing for the initial meeting
  • Telling the truth
  • Keeping a diary; and
  • Trusting your attorney for legal advice (as opposed to friends, family members, co-workers, etc.)

Do I stay or do I go? This is not an easy question to answer. However, if you are even
contemplating a divorce, divorce planning (and not in the nefarious way that often goes with this phrase) is essential, especially in difficult economic times. Divorce can be a long, highly charged, expensive process - emotionally and economically. Being prepared and keeping
perspective, at least as much as humanly possible, can help you save time and legal fees
while protecting your and your children's interests.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Parental Alienation Syndrome Will Not Be Included In the DSM 5

Back in 2009, we blogged about the possible inclusion of Parental Alienation Syndrome in the long awaited next version of the Diagnostic and Statistical Manual of Mental Disorders (DSM)

In that post, I discussed a US News and World Report article that addressed a movement afoot to add "parental alienation" to the next addition of the DSM (ie. Diagnostic and Statistical Manual of Mental Disorders) published by the American Psychiatric Association.

However, as expected for some time, the American Psychiatric Association board of trustees has recently approved the DSM 5 which has will be released in May 2013 and it has been confirmed that Parental Alienation Syndrome will not be included in the DSM V.

I am sure that this is both a defeat to some and a happy time for others. As I noted back then, while there appears to be little debate on whether parental alienation in both subtle and not so subtle forms goes on, there is a debate as to whether it represents a mental illness. On top of that, there is concern that certain opposition to visiting with a parent could either be age appropriate (eg. a teenager being oppositional) or otherwise justified.

No matter where you stand on the debate as to whether parental alienation is a mental illness, it is clear that alienating behavior in whatever form, big or small, cannot be good for the children that are exposed to it.  That said, because it will not be in the DSM, the debate over the issue shall rage on.  Moreover, without a diagnostic code, it will be difficult to get insurance companies, where coverage for mental health issues is often challenging, to pay for treatment related to parental alienation.
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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

The Judge Got It Wrong So Winning this Appeal Will Be Easy, Right?

Nearly everyone who has a judge rule against them thinks that the judge got it wrong.  Why litigate if you didn't think you were right?  Judges are human and some times they actually do get it wrong.  In those cases it is easy to get their decisions reversed, right?  After all, that's why we have a Appellate Division, right?

Right and wrong.  That is why we have an Appellate Division.  That said, given the standards of review in family court matters (and in all appellate matters in general), if you were betting, you should bet on the house because more cases are affirmed then reversed.  Other cases are remanded, not necessarily because the judge got it wrong, but because she/he did not provide sufficient fact finding in the decision to allow for appellate review.

I have rarely seen the standards of review set forth so cogently then in the unreported (non-precedential) case of Schleiffer v. Schleiffer released on December 6, 2012, citing the recent reported case of Milne v. Goldenberg (previously discussed on this blog).

The standards on appeal, we noted was follows:

In Milne v. Goldenberg, 428 N.J. Super. 184, 197-98 (App. Div. 2012) we recently restated our commitment to the principle that the work of the Family Part will not be disturbed absent compelling circumstances:

Generally, the special jurisdiction and expertise of the family court requires that we defer to factual determinations if they are supported by adequate, substantial, and credible evidence in the record. Cesare v.Cesare, 154 N.J. 394, 413 (1998). Accord N.J. Div. of Youth & Family Servs. v. E.P.,196 N.J. 88, 104 (2008); N.J. Div. of Youth & Family Servs. v. G.L., 191 N.J. 596, 605 (2007). It is well settled that Family Part fact finding receives particular deference because of "the family courts' special jurisdiction and expertise in family matters," Cesare, supra, 154 N.J. at 413, which will be disturbed only upon a showing that the findings are "'manifestly unsupported by or inconsistent with the
competent, relevant and reasonably credible evidence'" to ensure there is no denial of
justice, Platt v. Platt, 384 N.J. Super. 418, 425 (App. Div. 2006) (quoting Rova Farms Resort, Inc. v. Investors Ins. Co. of Am., 65 N.J. 474, 484 (1974)).

Also, we accord great deference to discretionary decisions of Family Part judges. Donnelly v. Donnelly, 405 N.J. Super. 117, 127 (App. Div. 2009) (citing Larbig v. Larbig, 384 N.J. Super. 17, 21 (App. Div. 2006)). "'[J]udicial discretion connotes conscientious judgment, not arbitrary action; it takes into account the law and the particular circumstances of the case before the court.'" Hand v. Hand, 391 N.J. Super. 102, 111 (App. Div. 2007) (quoting Higgins v. Polk, 14 N.J. 490, 493 (1954)). An abuse of discretion "arises when a decision is 'made without a rational explanation, inexplicably departed from established policies, or rested on an impermissible basis.'" Flagg v. Essex Cnty.
Prosecutor
, 171 N.J. 561, 571 (2002) (quoting Achacoso-Sanchez v. Immigration &
Naturalization Serv
., 779 F.2d 1260, 1265 (7th Cir. 1985)). However, a judge's legal
decisions are subject to our plenary review. Crespo v. Crespo, 395 N.J. Super. 190, 194
(App. Div. 2007) (citing Manalapan Realty, L.P. v. Twp. Comm. of Manalapan, 140 N.J.
366, 378 (1995)); Lobiondo v. O'Callaghan, 357 N.J. Super. 488, 495 (App. Div.), certif. denied, 177 N.J. 224 (2003).

In this case, the remand judge's factual findings were well tethered to the evidence, his legal conclusions comported with applicable precedent, and his discretionary decisions were rationally explained.

There are the standards all in one place:

  • Family part judges are granted deference based upon their "special expertise"
  • Deference is given to their decisions if supported by adequate, credible evidence in the record.  This does not mean correct, mind you, or that the appellate judges would have found the same way, only that they have to affirm if there is sufficient evidence in the record to support the decision.
  • If a decision is discretionary, it will be hard to overturn it since it is hard to show an abuse of the discretion if the decision is reasonably supported by the law and facts (or at least the facts that the judge chooses to cite to support her/his decision.
  • Legal decisions, however, are afforded no special deference.

This is not meant to say that you should not appeal.  But you should think long and hard before you do because even in the best of circumstances, you have an uphill battle.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Parenting Coordinator Pilot Program Ends - Katy Bar The Door

Yesterday, Judge Grant, the Acting Administrative Director of the Courts, announced that effective November 26, 2012, the Parenting Coordinator Pilot Program would be ending. The notice further provides that judges may still appoint parenting coordinators (PCs) and even provides model, but not mandatory, Orders for the their appointment. 

To those who oppose the use parenting coordinators, they may see this announcement as a victory of sorts.  However, I would not start jumping for joy, right away.  The good thing about the pilot program is that there were at least published guidelines approved by the New Jersey Supreme Court that could be followed.  In fact, as I wrote on this blog in September of this year we learned from the Milne v. Goldenberg reported decision that even in non-pilot program counties, if a PC was appointed, the Pilot Program guidelines had to be followed.  Query how this provision of the Milne case jibes with the above announcement but only time will tell.

If the Guidelines don't apply, are we going to return to a wild west environment like we had before the Guidelines?  In fact, I blogged about the pre-Guidelines madness all the way back in 2008.  As I noted then, over the years, judges began to make numerous appointments to attempt to, if not rid the courts, at least create a buffer for parenting and visitation issues that arose daily/weekly/monthly in high conflict divorce and post-divorce matters. Sometimes the professional was called a parent coordinator, other times it was a therapeutic monitor, a mediator, a parenting coach, etc. The role was generally the same, that is, to present these issues to a neutral third party that had either a legal or mental health background, or both, to assist the parties work out the differences and in many instances, make recommendations if they could not. 

The problem was that there was no uniformity to what this person, whatever they were called, could do.  Even Pre-Milne but post-Guidelines, I had cases where parent coordinators in non-Pilot Program counties were vested with incredible powers bordering on, if not crossing the line of the abdication of judicial authority, which is not supposed to happen.

Only time will tell whether the role of parent coordinator will go the way of the dinosaurs or go back to the free for all that existed pre-Guidelines.  Until then, we watch and hope that the dissolution of the Guidelines will not make things worse, instead of better.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Women Divorces Her Husband Because He Wouldn't "Play Fifty Shades of Grey"

In our effort to provide the reader of this blog all of the serious (ahem) family law news we can find, a top source for family law news, the New York Daily news provided some fodder for this blog this weekend.  While I suspect some of you are waiting for us to discuss the Justin Bieber and Selena Gomez break-up, the story at issue is not that one, but the one involving a woman in England who divorced her husband because he wouldn't play Fifty Shades of Grey.

In this case, it was reported that the woman, a successful banker earning $600,000 per year alleged that her attempt to jump start their love life with author E.L. James’s provocative novel backfired when her husband accused her of “unreasonable behavior.”  The husband allegedly blamed the breakdown of their marriage on that book.

Whether or not this book is causing similar marital distress, or perhaps the opposite, in New Jersey is unknown.  Since most divorce Complaints in New Jersey are filed citing irreconcilable differences, a no-fault ground, we don't hear the same level of the detail regarding why a couple is divorcing.  This was not the case 7-8 years ago and before, when irreconcilable differences was not available and most cases proceeded on the fault ground of "extreme cruelty."  Back in those days, parties had to allegedly prove the reasons why the conduct of the other made it unreasonable and improper to require them to continue to live together as husband and wife.  Now courts really did not care what was really in the Complaint and the only testimony at a final hearing was testimony that the allegations in the Complaint were true.  That said, depending on how angry people were, you could get a few short paragraphs, or you could get an Encyclopedia Britannica of allegations. 

Since it was largely irrelevant, only served to raise and more costly and time consuming than an irreconcilable differences Complaint, the system is better for us not having to file cruelty complaints in most cases (we may still file them if custody is an issue and/or there is a tort claim being filed too).  That said, from a lawyer's perspective, the cruelty complaints and counterclaims often afforded you, early on, to learn the true dynamic of the relationship in a way that better enabled you to strategize and otherwise help your client. Still and all, divorcing your spouse for not acting out what is in a book is a new one for me.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

JUST THE FACTS JACK - OR A LEGITIMATE QUESTION OF CREDIBILITY?

It seems that moving parties are more often trying to overcome the defects of their motions by arguing that a plenary hearing should be held due to unresolved questions of fact or issues of credibility.  In other words, the litigant asks the court to hold a trial at some point in the future because the party asserts that the court cannot properly resolve the party's motion simply by reviewing the disputing positions of the respective parties set forth on paper. 

While the case law indicates that a court cannot resolve issues of credibility or disputed facts without a trial, involving testimony, properly submitted evidence and the like, litigants often try to use such case law as a crutch to get past the fact that their motion should be denied on its face.  What often happens, as a result, is that a court will err on the side of caution in the realm of judicial discretion and grant the hearing.  The collateral damage is the incurrence of additional counsel fees, and substantial time before the motion is actually decided, thereby leaving the parties in limbo.  While hearings are often necessary to resolve legitimate issues, the question is whether the issue is always legitimate.

For the financially superior moving party, this may be exactly what he or she wants, as convincing a court to grant a future hearing can be an effective tactic to pressure the financially inferior party to settle.  While that party can seek counsel fees from the court to help take them through the litigation against the other party on an even playing field, there is no certainty that such fees will be granted.

I recently experienced such a scenario where my client had not been paid alimony in quite some time.  She was afraid to file a motion, knowing that her former spouse would come after her with "guns blazing."  Finally, on the verge of financial destitution, she filed a motion to enforce the property settlement agreement compelling the husband to pay.  In response, the husband claimed that the parties had verbally agreed at some point in the past to terminate alimony.  There was no proof in support of his assertion other than his own words that there was such an agreement.  My client denied the existence of the agreement.

It was because of this disputed issue of fact, where the parties' respective certifications stood toe-to-toe with each other, that the court granted a plenary hearing to determine, through the taking of testimony and review of evidence, whether there was a prior agreement to terminate alimony.  The court did afford some interim financial relief, however, recognizing the financial situation faced by my client.

The judge's decision was completely reasonable and understandable - how else was the court to resolve the issue of whether there was an agreement without holding a trial to make that determination?  In fact, I have been on the opposite side of the very same sort of motion, advocating for the existence of a prior verbal agreement to terminate alimony, which the parties lived by for several years as an implied acknowledgment of same.  Ultimately, however, this is a problem that can plague each and every motion.  Whenever a spouse or former spouse seeks to enforce the terms of the settlement agreement, the other party can respond that there was a verbal agreement not to abide by such language, with the hopes of getting a plenary hearing. 

Many settlement agreements contain language that the agreement itself may not be modified unless the change is made in writing, and entered through formal measures.  Even this language, however, is not bulletproof, as a verbal agreement may, in fact, have been made, and the parties, as I reference in the last paragraph, may have lived by it for several years, thereby creating a strong argument for the opposing party.  Notwithstanding, there does arise an issue with the case law calling for a plenary hearing in the face of competing certifications.

I encountered another example recently where a father sought a reduction of his child support.  Every single document submitted on his behalf suggested that his financial situation had, if not improved, at least remained steady.  His certification, however, told a very different story, claiming the "gloom and doom" of his financial situation. Not surprisingly, my client disputed his claims, pointing in large part to the black and white numbers in the exhibits attached to dad's certification. 

Perhaps realizing the fatal defects of his application, dad's response was to the effect of, "mom's story is at odds with mine and, as a result, this court should hold a plenary hearing to find out the truth."  During oral argument, dad told the same story, to which we responded that numbers on a page are not "bells and whistles," or the subject of competing certifications.  Rather, it is simple fact, as it was clear that dad was simply seeking that plenary hearing with the hope of being able to pressure our client into an inequitable settlement since she could not afford a discovery period and trial.

When up against such a situation, it is important that you, as the litigant, point out that the situation is not a matter of competing certifications and credibility, but that the numbers at issue tell the true story.  It is also important to convey to the court that almost every case involves certifications at odds with each other, and that it should take more than simple "pen to paper", with no supporting evidence, to take up the court's time with a time consuming and expensive trial. 

The court calendars are experiencing enough backlog that there needs to be some sort of "gatekeeper" standard to ensure to prevent this sort of litigation.   Where there is a legitimate dispute of fact and credibility, then a hearing should certainly be granted so that testimony can allow the court to reach the truth of the matter.  Unfortunately, as with my prior post regarding motions for reconsideration, this is not always the case.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group.  Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com.  

SOUR GRAPES AND A ROTTEN APPLE - WHEN RECONSIDERATION IS MORE LIKE FRUIT SALAD

Litigants who are displeased with the outcome of a judicial decision can rest assured that there exist multiple avenues by which a review of the decision may occur – mainly, in the form of a motion for reconsideration or an appeal.  This post focuses on the reconsideration route, which, despite the large number such motions that are filed, is actually supposed to be quite strict in its application. 

As a matter of common sense and an effort to avoid an even worse judicial calendar backlog than that which currently exists, reconsideration applications are not simply a way for the unhappy litigant to get another “bite of the apple”.   More often than not, however, it seems that reconsideration applications are exactly that –a way for the dissatisfied party to be heard again on the same issues with the hope that the trial judge will simply change his or her mind. 

Rule 4:49-2, which applies to reconsideration motions, does not provide much by way of direction.  Rather, it focuses largely on the deadline for filing.  It states:

 

Except as otherwise provided by R. 1:13-1 (clerical errors) a motion for rehearing or reconsideration seeking to alter or amend a judgment or order shall be served not later than 20 days after service of the judgment or order upon all parties by the party obtaining it.  The motion shall state with specificity the basis on which it is made, including a statement of the matters or controlling decisions which counsel believes the court has overlooked or as to which it has erred, and shall have annexed thereto a copy of the judgment or order sought to be reconsidered and a copy of the court’s corresponding written opinion, if any.  

 

Various cases have fleshed out what constitutes a sufficient basis for reconsideration:

  • The court’s decision is based on plainly incorrect reasoning;
  • The court failed to consider evidence;
  • There is good reason for it to reconsider new information that was not available at the time of the prior judgment/order; 
  • By correlation, the motion may not be based on facts known by the moving party prior to the entry of the judgment or order; and
  • The motion may not simply be an effort by the moving party to reargue the motion and expand the record – the motion is not an opportunity for the previously losing party to attempt a second “bite of the apple”.

In the decision of Michel v. Michel, 210 N.J. Super. 218 (Ch. Div. 1985), the trial judge perfectly summed up the problems with motions for reconsideration, especially in the Family Part:

. . . This practice [filing motions for reconsideration], developed by attorneys, has become a mechanism by which unhappy litigants attempt once more to air their positions and relitigate issues already decided.  It has also been employed (although not in this case) as a method by which a party extends the time in which he must appeal. . . . Additionally, it is observed that the effect of such procedure is an unnecessary duplication of court time and counsel fees to the client.  Considering the volume of matrimonial motions, the result of this practice is to increase the backlog of the Court’s workload, only to be followed by, in the great majority of cases, the inevitable appeal.   Thus, not only is court time duplicated and thereby wasted, but also wasted are hundreds and thousands of dollars in legal fees generated. . . . Such practice should further be discouraged inasmuch as it tends to erode the policy of according finality to decisions of the Court.  If dissatisfied with a post-judgment order, a litigant has the right to appeal. 

 

The practice of allowing motions for reconsideration, however, leaves the responding party forever open to the threat of being summoned into court to relitigate an issue presumably decided.  Such is inherently unfair and offensive to our traditional notion of res judicata.  To routinely permit such practice to continue approaches a legal system, which recognized neither res judicata nor a statute of limitations - the litigant must live in constant anticipation that at any time he may be brought before a court to resolve an issue, which he thought, had been resolved. 

 

Despite such wisdom, it is clear that the moving party in the recently unpublished (not precedential)  Appellate Division decision of Proetto v. Proetto did not get the memo.  Utilizing the points I have outlined above, the Appellate Division found that the moving party appealing his denied motion for reconsideration was simply – and improperly – attempting to expand the record and regargue his originally denied motion.  As a result, his appeal went nowhere. 
There are lessons to be learned from the above that we as matrimonial attorneys have to stress to our clients:

 

  • A second bite may have you reaching into your wallet for the other party - Simply relitigating a previously denied motion will not only likely result in a denial, but you may also be compelled to pay the other party’s counsel fees for having to respond to the application a second time;
  • Provide all relevant existing evidence with your original motion - Do not suddenly produce evidence to the court that you should have – and could have – produced in the first place – i.e., if you are seeking a modification of alimony and you purposely do not include your most recent tax return, do not expect the court to react so kindly when, suddenly on reconsideration, the tax return is attached to your certification as a form of “new evidence”;
  • Be specific - The basis of your application should not simply be that it was an unfair result – the epitome of the “sour grapes” reaction.  Rather, the application needs to be specific, outlining just how the evidence upon which the trial court ruled was applied in error, or somehow overlooked a critical point that would have, and should have, resulted in a different decision.
  • Be strategic with your filing - If you plan on filing an appeal, filing a motion for reconsideration beforehand may simply provide the trial judge with an additional opportunity to cement the reasoning and findings for the prior decision, thereby rendering potentially more difficult the chances of success on appeal.  

Thus, while a motion for reconsideration is certainly a viable option when you receive an unfavorable result, it is important to realize that the court is not simply going to pretend that you never filed that prior motion.  Rather, if anything, your second motion will be looked at with greater scrutiny to make sure that you are not trying to bite the so-called apple to its core.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group.  Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com.  

Read Aaron Weem's Interesting Post Entitled "Emotional Abuse Just As Harmful as Physical Abuse"

Aaron Weems is an attorney in our Blue Bell (Montgomery County), Pennsylvania office and editor of the firm's Pennsylvania Family Law Blog wrote an excellent post entitled "Emotional Abuse Just as Harmful as Physical Abuse."

While some of the local programs Aaron discusses for his county may not be available in New Jersey, the piece provides a good explanation of the issues and I encourage you to read it.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Fox Rothschild's Robert Epstein and Lauren Koster both featured in current edition of the New Jersey Family Lawyer

Robert A. Epstein, an associate in our Family Law Group resident in the Roseland, New Jersey office, authored the article, Imputing Income to a Non-Working Spouse During the Pendente Lite Period: A Violation of the Status Quo or a Practical Step Toward the Reasonably Comparable Lifestyle?, for the November 2012 edition of The New Jersey Family Lawyer. The article highlights the fact that the outcome of pendente lite support determinations in divorce proceedings can have a long-lasting impact on the court’s view of the case, the tenor of an ongoing matter, and the prospects of settlement.

 

Additionally, Lauren E. Koster, an associate in our Family Law Group resident in the Princeton, New Jersey office, co-authored the article,Navigating a Partnership K-1: The Untold Line Items and What They Really Mean, also for the November 2012 edition of The New Jersey Family Lawyer. Koster, and her co-author, Leonard M. Friedman, CPA/ABV CBA, Partner at Rosenberg Rich Baker Berman & Company in Somerset, New Jersey, argue that while a K-1 provides valuable insight about a particular business and how much a person may, in fact, be truly earning, it should also be noted that navigating your way through a K-1 can be a daunting task for those family law practitioners who are not familiar with the document.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

GETTING BY WITH A LITTLE HELP FROM YOUR FRIENDS - EXCEPT THAT ALL CASES ARE DIFFERENT

All too often I hear from clients about how they should end up with a specific result in their case because their friends went through divorces of their own and ended up with that desired result, or something similar.  I can certainly sympathize with a client who want to talk to their loved ones and other people who have gone through what they are going through to not only make sure that they are getting a fair result, but also for the simple purpose of comfort during a stressful time.  

It is critical, however, for each litigant to understand that every case is different and rests on its own facts and circumstances.  Each set of parties are also different from case to case, and as a result, each outcome is different.  It is always important that a client understands this to be the case as we explain to them the divorce process, what the law is and how it is applied, and what reasonable expectation he or she should have as to how the results received by others.

For instance, I learned from another contributor to this blog that whenever a client asks how long their case is going to take, the answer is generally "it depends."  It depends on you.  It depends on your spouse.  It depends on the facts of your case.  While matrimonial attorneys often have a preliminary sense as to what alimony or equitable distribution may be based on prior experience, no one can look into the future to see exactly what will happen.  Most clients want the divorce process to be as short and amicable as possible, and, from what they have seen or heard, expect only the longest and most acrimonious divorce imaginable.  Thus, from the very start the client must be made aware that the length and outcome of a case depends, in large part upon the parties themselves.

There is, perhaps, no better example of when this occurs than with the issue of alimony.  This is likely because it is generally a "hot button" issue, especially in New Jersey where alimony reform has been the subject of extensive recent discussion and attempted legislative change.  Also, unlike child support, which is generally based on the formulaic child support guidelines (unless further analysis is required where the parties' collective net incomes exceed the guidelines' limit), and unlike equitable distribution, which is generally a 50/50 split of marital assets (except with the distribution of the marital interest in a business), alimony is, perhaps, subject to greater shades of gray.

One of the first questions that I am always asked when it comes to alimony is for how long the alimony will be.  The question is then usually followed by the client stating how long the marriage was and what their understanding is from other people as to when permanent alimony comes into play.  Interestingly, while the length of the marriage is certainly an important factor, litigants often seem to treat it like the only factor, despite the alimony statute listing no less than fifteen factors for consideration. 

While there are certainly some predictors and practices to help advise a client in determining what alimony may be, there is no set of alimony guidelines or formula for calculation.  Rather, there are the factors I reference above, each of which is applied to the specific facts of a given case.  Thus, while the comfort afforded to a client in speaking with their loved ones is a strong draw, we as matrimonial attorneys must instill in them the notion that no result will ever be the same (nor should it be), especially in the context of settlement, where there is commonly a give-and-take between the issues of alimony and equitable distribution.  

Thus, while getting by with a little help from friends is often essential to providing comfort, advice, and compassion in a time of need, it is the matrimonial attorney who possesses the level of expertise upon which clients rely to take them through the divorce process and achieve a desired result under the circumstances of their specific case.  

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group.  Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com.   

Deciding Whether to Settle or Defend Yourself Against a Persistent and Financially Superior Spouse

Reading and considering Eric Solotoff’s blog from earlier this week regarding the benefits of settlement, it is also critical to know when to settle and, quite frankly, whether to settle at all. This especially applies to those current or former spouses who simply cannot afford to litigate against a financially superior former spouse. This situation is often referred to as litigating on an "uneven playing field."

Trying to some degree to place myself in your shoes, it can only be an extremely difficult decision whether to, once again, go up against the other party with the bottomless wallet, or just settle for what they want and get it over with. These decisions may not only have an impact on your own wallet, but also on your family's overall well being, especially if children are involved. Too often, the other party knows this to be the case, which is why they will continue to file or threaten to file motions in the hope that you will eventually "give in" under the pressure.

This blog should not be taken as a sign of encouragement to litigate a case, but rather as a cautionary note for what you, as a litigant, may be sacrificing with your decision. Ultimately, it is you who has to wake up in the morning and be comfortable with your decision, which is why having all information at your disposal is, perhaps, the most important part of the decision-making process. 

One tell tale example that comes to mind revolves around a party’s threat that he will request all available remedies, including counsel fees, if he is forced to file a motion in the event that the alleged issues do not settle.  In family law motion practice, the party filing the motion (and for that matter, the other party filing a cross motion) will almost always ask for counsel fees from the other party, with a common justification being that he was compelled to file the motion only after the other party refused to settle the issues before the court.

Simply because the issues did not settle, however, does not mean that they should have settled, or that there were even any legitimate issues at all.  Last year I was in court for oral argument after a former husband filed a motion against his former wife for a modification of his parenting time. Notably, this was no less than the fourth time that dad had sought such relief in the past two years and his annual income was no less than six times that of my client, rendering her unable to continue litigating with dad on a so-called “even playing field."

Dad, however, conveniently forgot to mention to the new trial judge that his prior requests for relief were made at all, let alone denied (despite the fact each of his prior applications and the resulting Orders were a part of the court's file).  Of course this did not stop him from asking for counsel fees on the basis that our client allegedly refused to "settle" his latest requests to modify the parenting time schedule, when, in actuality, she was simply trying to defend herself against his latest litigation onslaught.  

Fortunately, the trial judge understood what was happening and not only denied dad's requests for relief, but directed him to pay my client's counsel fees as well.  Unfortunately, I have no doubt that dad will file another motion at some point soon for the same type of relief and, if denied, will file again and again until he gets what he wants because he knows that mom simply cannot afford to keep up with him.

I recently experienced another cautionary example in the midst of oral argument on a former husband’s latest motion to reduce his child support. Similar to the dad referenced above, this litigant had been denied his requests to lower his support obligation on no less than four prior occasions, essentially filing every two years and, in this latest instance, attempting to take advantage of a new trial judge unfamiliar with the matter.  Considering his financial superiority over our client, it was not surprising that he continued to come back time and again in an effort to get what he wanted.

In this case, as is often the case, the trial court, in advance of oral argument, issued a tentative order, based solely on a review of the motion papers and opposition.  In its order, the court determined that the father had fulfilled his initial burden of proof, thereby entitling him to a period of discovery and a trial to determine if his support should be reduced. Based on the tentative order, my client requested oral argument, since, once again, the former husband’s numbers simply did not add up.

During the midst of oral argument, the other attorney asked for a brief recess after my argument and, incredibly, asked to step outside and discuss a settlement because the judge had already "given him his plenary hearing." After argument concluded approximately thirty minutes or so later, he again asked if I wanted to discuss settlement - after the judge had just indicated that he would be conducting an entirely new review of the information and alleged issues before the court. It became clear that the husband was concerned with the weaknesses of his application and was trying to quickly settle before the court made its decision and potentially denied his requested relief.

I have no doubt that, he, like dad above, will continue to litigate every year or so until he gets what he wants - via financial pressure or otherwise.

In both of these examples, our clients considering the options of defending themselves against their financially superior adversaries, or acceding to their demands, and decided to proceed.  Each case is very different from the next, as is each litigant.  Ultimately it is you, based on your own circumstances, who has to decide how to proceed.

The court is there to protect the interests of both parties and, along with that, there are ways to ensure that you do not simply have to give in to the pressure of a determined adversary. Counsel fees, sanctions, and the like are available remedies designed to even the uneven playing field, and also to discourage the other party from continuing down a path of misconduct that may seemingly never end.

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Robert Epstein is an associate in Fox Rothschild LLP's Family Law Practice Group.  Robert practices in the firm's Roseland, New Jersey office and can be reached at (973) 994-7526, or repstein@foxrothschild.com.    

 

Another Reason to Settle - Parties can agree to things that Judge's can't mandate - like automatic reductions and formulas for alimony

When settling a case, the parties and their lawyers can be far more creative in settlement then a judge can be if the case is tried.  While family judges have wide discretion in their decision making, creativity is crafting the most beneficial result for both parties is rarely something they can do.  In fact, in many ways, they are constrained from the type of creativity that we see every day in divorce agreements. 

What if you are a high earner, but your income fluctuates greatly from year to year?  While a judge will likely have no choice but to determine your average income over 3 to 5 years and base support upon that as well as the rest of the statutory factors, you may want to agree on some kind of formula so that there is fairness year over year, i.e. you pay more in a better year and less in a down year. For example, if your average income is $2,500,000 but your income fluctuates between $1 million and $4 million per year.  You would really hate paying alimony in those years you only make $1 million.  If a judge decided this case using averages, you might be forced to pay your entire net income, or more, to you ex spouse in the down year.  Similarly, a judge could never say that support "automatically" is reduced or even reviewed if your income is less than $X in the future. 

This concept was reiterated again by the Appellate Division on October 29, 2012 in an unreported  (non-precedential) decision in the case of Means v. Snipes.  In this case, after a trial, the judge decided that in the event that defendant's annual income fell below $2 million, he would receive a reduction in alimony. This is the one thing that both parties agreed was in error - a rare agreement in a very contentious case.

Interestingly, as to the automatic reduction of alimony, the Appellate Division noted that:

Paragraph 21 of the AJOD provides for a pro-rata reduction in alimony payments if defendant's annual gross earnings drop below $2,800,000 in a given year. In addition, paragraph 8 provides that defendant "will have an automatic right to receive a reduction in Alimony" if his gross annual earnings fall below $2 million. The parties did not agree to an automatic adjustment in alimony based upon this criterion. Each of the parties argues that the court erred in including this provision in the AJOD and that any  modification of alimony should be subject to the principles set forth in Lepis v. Lepis, 83 N.J. 139 (1980). We agree. Therefore, we reverse that part of the court's decision set forth in Paragraphs 8 and 21 of the AJOD that calls for an automatic reduction in alimony based upon predetermined income amounts, and direct that it be vacated from the order. (Emphasis added)

As highlighted above and in this quote, the parties could have agreed to such an automatic review in advance.  In fact, it happens reasonably often.  A judge cannot because it would, in essence, be a pre-judgment of what happens when there is a future event. A court, for example, cannot say at the time of the divorce that alimony will terminate upon the payor's retirement at age 65.  Parties can (but rarely do) agree to that.  At trial, judge's also cannot say that the support will increase if the payor's income goes up.  They cannot say that the support will go down if the recipient earns $X dollars.  On the other hand, parties agree to this all of the time.  It is rare to see courts impose different tiers of alimony (eg.  $50,000 a year for the first 3 years dropping down to $35,000 for the next two years dropping down to $20,000 thereafter, for example).  Parties do this all of the time too.

The bottom line is that one size does not fit all.  Unfortunately, trial judges are limited in their abilities to creatively decide cases.  So if you want the resolution that best meets your needs, settle.

 

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Prenuptial Agreement Reform in New Jersey Appears Likely

Is prenuptial agreement reform coming to New Jersey? It appears to be the case.

Prenuptial Agreements are meant to fix parties rights and responsibilities in advance, so as to avoid litigation and aggravation in the future.  In fact, right up front in many if not most prenuptial agreements there is a "Statement of Intention" as follows:

It is the intention of the parties in entering into this Agreement that in the event of the termination of the marriage by divorce or death, certain rights shall be fixed in advance. It is their intention to avoid litigation and intrusion into their professional and personal lives and the lives of their families and business associates, which would perhaps otherwise occur if this Agreement had not been entered into.

Unfortunately, unlike in many other states, where prenuptial agreements are ironclad as long as there was full disclosure and the other procedural requirements are met, that has not been the case in New Jersey.  The major reason for this is that in New Jersey, aside from setting aside a prenup due to failure to follow the procedural requirements, including full disclosure, agreements can be set aside if they are deemed to be unconscionable, not only when they are entered into, but when they are to be enforced at the time of the divorce.  As a result, I have heard judges say that they have never enforced a prenuptial agreement.  I have heard other judges give the rationale that because you don't know what is going to happen in the future, it is unfair to enforce the agreement against a spouse where she/he waives alimony or the equitable distribution rights.  That rationale misses the point as that is the entire reason for a prenuptial agreement.

I have even had cases where the judge allowed the entire case to go forward, including the appointment of forensic accountants to value a business that was excluded in the prenuptial agreement as a separate asset, not because the adverse party was arguing fraud or unconscionablity up front, but because they wanted to see if they could go on a fishing expedition in discovery to try to come up with something to set it aside. 

The result of all of this is to gut the reason that people enter into prenups in the first place.  Well, just as they have done with palimony previously, and are attempting to do with alimony, New Jersey law makers have stepped in and have proposed legislation to reform the law on prenups too.  The proposed statute has already been passed in the Senate.  Yesterday, it made it out of committee in the Assembly and will be going to a vote before the entire Assembly.

The proposed bill essentially removes the "unconscionability at the time of enforcement" attack on agreements.  The proposed bill notes:

The bill eliminates this statutory definition as well as the determination of unconscionability on the basis of when enforcement of the agreement was sought. It instead provides that a premarital or pre-civil union agreement could not be deemed unconscionable unless the agreement was unconscionable when executed because the party seeking to set aside the agreement: (1) was not provided full and fair disclosure of the earnings, property, and financial obligations of the other party; (2) did not voluntarily and expressly waive, in writing, any right to disclosure of the property or financial obligations of the other party beyond the disclosure provided; (3) did not have, or reasonably could not have had, an adequate knowledge of the property or financial obligations of the other party; or (4) did not consult with independent legal counsel and did not voluntarily and expressly waive, in writing, the opportunity to consult with independent legal counsel.

If passed, the proposed bill would take effect immediately and apply to all premarital and pre-civil union agreements which have not been the subject of an enforcement proceeding filed with a court as of the effective date.

While the palimony statute and proposed alimony reform may be more controversial, one would think that prenup reform should not be.  When presented with a prenup wherein a party is giving up future rights, they have two choices.  Either negotiate a better deal and if you can't, then don't get married.  However, shouldn't people be entitled to rely on the contracts that they enter into?

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

So you thought it was a good idea to stay in business with your ex-spouse

It seems to make sense that when parties who are business together get divorced, one party has to go.  The theory of "this town isn't big enough for the both of us" comes to mind.  In fact, as far back as 1978, the courts of New Jersey recognized this seemingly common sense fact in a case called Borodinsky.  In that case, the Court held:

It seems almost doctrinal that the elimination of the source of strife and friction is to be sought by the judge in devising the scheme of distribution, and the financial affairs of the parties should be separated as far as possible. If the parties cannot get along as husband and wife, it is not likely they will get along as business partners ...

There is no restriction on the court with regard to ordering distribution in kind of the eligible assets or awarding a monetary equivalent thereof. But, nonetheless, the judge should consider the former relationship of the parties and the fact that post-divorce peace is more conducive to the welfare of the parties.

But what if you agree to stay in business with your former spouse after the divorce?  What happens when things go bad?  Can you simply force a dissolution or buy out?

This was the issue in the case of Moriello v. Moriello, an unreported (non-precedential) case decided by the Appellate Division on July 17, 2012.

In that case, the parties agreed to continue to jointly own two income producing properties post-divorce.  Citing discord with her former husband over the properties' management, plaintiff moved to modify the divorce agreement and partition the properties.  The parties' divorce agreement named a property manager for the properties and even had a process if that manager no longer was to act in that role.  The trial judge denied the motion finding that the divorce agreement "... was entitled to respect and should not be modified on the basis of circumstances that the
parties' contemplated or could foresee when they executed the agreement."  This is consistent with the law and also consistent with the general notion that equitable distribution is not modifiable. 

In addition, when people own property jointly, if there is a dispute in the future, typically, one or both can seek partition to separate themselves from each other.  However, as the court noted here, the right to partition is not absolute and can be bargained away - which is what the court found happened here.

So what is the moral of the story here?  Parties should be very careful about agreeing to joint ownership of businesses or anything else post-divorce.  Moreover, they should build in dispute resolution procedures and should also consider procedures allowing them the ability to extricate themselves from the situation if they no longer can co-own the property in an agreeable manner.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com
 

If you think that all meetings with experts can be recorded, think again

While it doesn't happen in every case, from time to time there is a request made by a client or opposing counsel to tape the meeting between the opposing expert.  This happens more frequently in contested custody cases, but it could happen as to any expert, I suppose.  The general rule seemingly had been that these sessions can be taped (with notice - not surreptitiously).  Why do people want to do this?  Some people are not trusting.  Others want to make sure that they are not misquoted in an experts report.  Some even do this if an expert is known to ask leading types of questions suggesting a response that may then be used against the party being interviewed.

A question recently arose as to whether the experts can be compelled to tape all interviews, not only of the one party, but of the children too.  In a reported (precedential) trial court opinion in the case of Koch v. Koch which was decided last year but approved for publication last week, the judge refused to allow all interviews to be taped.  Specifically, the court concluded that concludes that a party has the right to record his or her own interviews with a psychologist or psychiatrist, but does not have the right to compel the other party’s expert to record interviews of the other party or the parties’ children.

As to the general rule noted above, the judge here was not so sure and the opinion included a threshold discussion as to whether expert interviews in a custody case could be taped since the case that lawyers generally relied on involved the taping of a session with a psychologist in a civil litigation.  Notwithstanding the conclusion, the judge noted:

Accordingly, a custody evaluation is an expert report where the court expects, and is
assisted by, the independent professional judgment of a licensed mental health expert.  Requiring recordings could undermine the very purpose of the evaluation. If the children know that they are being recorded, and know that their parents are in a custody dispute, the children might be less candid for fear that their parents will hear what they say to the evaluator. Such recordings effectively bring the parents into the children’s interviews and could distort the information needed to prepare an accurate and balanced evaluation.

 

The trial judge then boiled the issue down to it's basics as follows:

The fundamental issue then becomes: is it in the best interest of children to allow their parents to have access to the children’s interviews? The evaluator often observes and has discussions with the parents while the parent interacts with the children. When, however, the evaluator speaks to the children alone, the very purpose of that interview is to obtain the children’s independent views. Giving parents recordings of those interviews, albeit after the fact, undercuts the very goal of the interview and prevents the evaluator from getting the candid views of the children because the children will know that their parents will be listening
to the interviews.

Of even greater concern is the high potential for misuse of the recordings of the
children’s interviews. In contentious custody disputes, it is not hard to imagine how  a parent could confront a child with the child’s own words or make a child believe that he or she has somehow been disloyal to that parent. Even the best meaning parents, when concerned by what they heard in their child’s recorded interview, may let words or information from the child’s interview slip that may cause anxiety or harm to the child. It is important to keep in mind that children being interviewed in a custody evaluation are aware that their parents are in a child custody dispute, and they may already have anxiety and concern over their role in that dispute and how the custody arrangements will be resolved.

Against the obvious potential harm to the child, it is hard to identify a legitimate need
for the disclosure of the child’s interview. As already pointed out, the proponent relies on the need for open discovery in custody matters. It is worth reiterating that custody evaluations are not discovery devices. Indeed, the children have not brought the action; rather they are innocent children swept up in a dispute between their parents. In short, litigants’ rights to discovery cannot trump the court’s responsibility to protect the child. As a consequence, if one party hires an expert who chooses to record all interviews and make those recordings available to a party, that party will need to obtain the permission of the court before the expert can release any recording of a child’s interview to any counsel or to any parent.

The court concluded that it had the power to decide if, and under what conditions, any mental health expert can make recordings of children’s interviews available to counsel or a party when that interview is conducted as part of a custody evaluation.

Being a trial court opinion, it is not binding on other trial courts or the Appellate Division, however, it is persuasive.  However, since custody reports often quote or characterize things that a child says, one wonders whether the court needed to go this far because parents get to see the reports.  The difference, however, is that the report is after an evaluation and not during where a child can try to "change" what he/she said.  Moreover, the parent that might use the information in a recording is likely the same parent that would grill a child after their interview with the expert anyway. 

In any event, this case does provide some useful guidance and well reasoned analysis.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.
 

Beware the Lump Sum Alimony Payment

Parties often like - well no one really likes to pay alimony - to use alimony as a vehicle to settle issues in a case because usually, alimony is deductible to the payor and includible in the income of the recipient.  Because of differences in tax brackets, proper structuring of alimony can create additional cash flow for the recipient and additional tax relief for the payor. 

There are times, however, when alimony is paid in a lump sum. Sometimes an alimony obligation is bought out - prepaid if you will (though for the payor, one wonders whether this is a good deal because the recipient can go out and get married the very next day whereas alimony terminates upon remarriage typically (as well as death).  Other times, people make a business decision to front load some of the alimony so that the monthly payments in the future are reduced.

However, lump sum alimony cannot be deducted nor is it includible in income.  Because of this, consideration should be given to what the lump sum should be by perhaps tax effecting the number so that the recipient does not get the full amount, up front, without having to pay taxes on it.

What happens, however, when parties settle a case that includes the traditional periodic payment of alimony but then they decide to modify this agreement to pay a lump sum?  Can this lump sum representing the conversion of a payment that was clearly deductible be deducted? 

The IRS recently answered that question in Private Letter Ruling 201206005.  While private letter rulings can only be used by the taxpayer submitting the request for a ruling from the IRS, and cannot be cited as precedent, this private letter ruling was interesting.

Therein, the taxpayers wanted to convert periodic payments into a lump sum, however, for some time prior to the lump sum, there would be periodic payment.  The IRS determined:

The Modification Agreement expressly designates the lump-sum payment provided under the agreement as excludible from Wife's income and non-deductible from Husband's income for federal income tax purposes. Therefore, the lump-sum payment does not meet one of the factors of § 71(b)(1) of the Code that requires
no such designation of the payment in the divorce or separation instrument in order to meet the definition of alimony or separate maintenance payment for purposes of §§ 71 and 215. Further, there are no past due alimony payments involved in this case. Accordingly, we conclude that the payment of $F in a lump sum by Husband to Wife in return for the extinguishment of his liability to pay alimony to Wife is not alimony or separate maintenance payment as defined in § 71(b), and is not includible in Wife's income under § 71 and not deductible by Husband under § 215. However, the Y month's alimony payments made under the Modification Agreement satisfy all of the factors of § 71(b)(1) and qualify as alimony taxable to Wife under
§71 and deductible to Husband under § 215.

In any event, lump sum alimony can be a trap for the unwary.  As such, it would be wise to discuss these issues with experienced and sophisticated counsel and tax professionals.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

DIVORCE FROM A MENTAL HEALTH PROFESSIONAL'S PERSPECTIVE

Fox Rothschild's New Jersey Family Law Legal Blog welcomes Kelly Sutliff, MA, LPC, NCC, a licensed professional counselor with Kelly Sutliff, LPC, located in Madison, New Jersey, as a guest blogger.

Having known Kelly for over ten (10) years and speaking at length with her about the trauma that many children suffer through as a result of divorce, I thought it would be helpful for readers to hear about the mental and emotional impact of this process from a mental health professional. Below is an excerpt from a piece written by Kelly to better help parents going through a divorce understand the impact on their child.

"It's my fault". "My parents don't love me anymore". "I lost my family". "I'll never see my mom/dad again". These heartbreaking comments are commonly mentioned by children affected by divorce. Although these comments may be unrealistic, the sense of loss a child may feel as a result of his or her parents' divorce can be overwhelming and devastating. It is important for parents to help their children to cope with the divorce as well as to seek outside professional help, if needed.

Divorce can be an emotionally traumatic experience that can have an impact on a child's feelings of safety, security, and stability. Frequently, the stress children feel as a result of their parents' divorce relates to the family structure changing. Children fear change and the amount of changes that follow a divorce can be overwhelming and frightening. Many children also feel a loss of attachment to one or both of their parents after a divorce. Changes in scheduling and how often they see a certain parent can cause a certain amount of distress. The fear of being abandoned is also a fear that many children of divorced families face. Often, they feel that because one parent has moved out of the "family home", they are likely to lose the other parent at some point as well. They may blame themselves, feel unloved, and worry that they are the cause of their parents' relationship ending. Another factor that can lead to children's feelings of stress is hostility and fighting between parents. Arguments and tension between parents may make children feel angry, guilty, and alone. Some children feel "put in the middle" of their parents' arguments and believe that they are being asked to choose sides. The internal struggle that these children face when feeling this way can have profound negative effects on their behavior.

Parents can absolutely help their children through the process of divorce. Research indicates that it is vital to talk with your children about the divorce. Although this will certainly be painful for you, sharing general information about the divorce with your children will help to open the lines of communication between you and your children as well as foster a sense of trust. During conversations about the divorce, it will help to listen to what your children say and how they feel (even if you do not agree) and to reassure them that they are loved immensely and that the divorce is not their fault. It is also important to clear up any misunderstandings about the divorce that they may have. Another helpful strategy for parents is to maintain structure and stability as much as possible. Divorce causes many changes. It is important to help your children adjust to one change at a time. For many children, dealing with many changes at once can be overwhelming. Creating regular routines for children is helpful.

One of the most important factors in helping your children cope with divorce is maintaining an amicable relationship with your soon-to-be-ex. Although this may be very difficult at times, conflict between parents can have negative consequences on children. Limiting the amount and the intensity of conflicts between yourself and your soon-to-be-ex is vital. Remember, although you are not a couple any longer, you are obligated to parent your children together. Therefore, collaborating about child-rearing techniques and discipline will help your children significantly.

Some children deal with their parents' divorce with relatively few problems, while others have a very difficult time. Through individual and family therapy, children will be given the opportunity to discuss their thoughts and feelings and to communicate their concerns with an experienced professional who can assist them in developing healthy coping strategies. Not only does therapy benefit children, it will also help parents to continue to parent their children effectively, even though they are no longer a couple.

Kelly Sutliff can be reached at (973) 224-2574. Feel free to visit her website at www.kellysutlifflpc.com.

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Sandra Fava is a contributor to the New Jersey Family Legal Blog and a member of Fox Rothschild's Family Law Practice Group. Sandra practices throughout New Jersey in all areas of family law and family law litigation. You can reach Sandra at (973)994-7564, or sfava@foxrothschild.com.

STRIKEOUT? FORMER PITCHER GRANTED RELIEF ON MOTION TO REDUCE SUPPORT

While decisions from the Appellate Division addressing a former professional athlete's motion to reduce his support obligations do not come around all that often, we have, in fact, previously blogged on the issue.  Now from the Appellate Division comes the unpublished (not precedential) matter of Villone v. Villone, where the Appellate Division strictly relied on "triggering" language in the parties' Marital Settlement Agreement in reversing and remanding a trial court's decision that a former Major League Baseball pitcher was not entitled to a modification of support. 

The matter involved that of former pitcher Ron Villone, who has played for more franchises than almost anyone else in the history of the game (an interesting record that was recently broken) - 12 to be exact as of Spring Training 2011, when he was released by the Washington Nationals and signed with the Somerset Patriots (an independent, minor league baseball club).  He became well known for his travels, earning the nickname "Suitcase" Villone from teammates.  Also interesting is that his current wife is on the reality show "Baseball Wives", which, in the context of asking for a support reduction could provide potential evidence for his former spouse to use against him in opposing such request at the trial level.

Taking into account the fluctuating nature of Ron’s major league income, including whether he would be relegated to the minor leagues for a certain period of time, the parties provided defined support parameters in their settlement agreement, as well as specific “triggering events” that would allow for a support review:

B. Payment of alimony in the sum as set forth in "A" shall continue, so long as the Husband has earnings from his current baseball contract, including licensing fees and endorsements, annually between the sum of Nine Hundred Fifty Thousand ($950,000.00) Dollars and One Million Five Hundred Thousand ($1,500,000.00) Dollars. In the event the Husband earns less than said sum, then the Husband has the right to apply to the Court for a reduction in alimony unless it can be otherwise negotiated by agreement between the Parties. If the Husband has earnings in excess of said sum, then the Wife may seek an increase in alimony from the Court.

C. If the Husband's baseball contract provides that he plays in the minor leagues and if he remains in the minor leagues for a period of sixty (60) days, then the Parties agree to re-negotiate alimony. In the event the Parties cannot come to agreement, the Husband has the right to seek the aid of the Court. If and when the Husband shall return to the major leagues and his earnings including salary, endorsements and licensing fees received within a calendar year, equal the sum of Nine Hundred Fifty Thousand ($950,000.00) Dollars to One Million Five Hundred Thousand ($1,500,000.00) Dollars then alimony will return to the sum as originally set forth commencing from the period of the return to the annual salary at the sums as set forth.

The agreement also provided as follows regarding a modification of child support:

Commencing on the first day of January, 2004, and continuing until emancipation or a change of circumstance as defined in Paragraphs B and C above, i.e., wherein the Husband's salary plus endorsements and licensing fees shall be reduced within the calendar year to a sum below Nine Hundred Fifty Thousand ($950,000.00) Dollars and above One Million Five Hundred Thousand ($1,500,000.00) Dollars, the Husband shall make direct payment to the Wife in the sum of Seven Thousand ($7,000.00) Dollars per month allocable to both children. The Husband shall have the right to return to the Court for a re-allocation of child support in the event his earnings being less than $950,000.00 inclusive of licensing fees, baseball salary and endorsements and if he returns to the minor leagues for a period in excess of 60 days.

When they reached the agreement in 2004, Ron was earning an annual salary of approximately $1 million as a pitcher for the Seattle Mariners.  Over the next few years, the wife filed for and obtained an increase in support upon Ron's signing of a contract with the Mariners that provided him with a level of annual income triggering a review.  In 2009, Ron signed a contract with the Washington Nationals, wherein he earned approximately $1.7 million for 2009.  As of April 2010, the team informed him that he would be assigned to pitch for its major league team, where he pitched for more than 150 days and his salary was approximately $59,000.

Shortly thereafter, in September 2010, Ron filed for a reduction in alimony and child support.  He certified that the Nationals released him as of August 2010 and that there were no offers on the table, nor were they likely to be made, for a 40 year old relief pitcher.

In response to Ron's application, his ex wife argued that there was no change in circumstance justifying a support modification, relying upon the income and asset information contained in Ron's Case Information Statement filed with his motion.  The trial court agreed with the wife, denying Ron's application based on a finding that he had failed to fulfill his initial burden of proving a change in his financial circumstances, including his failure to show that any change was permanent. 

On appeal, rather than address whether Ron had fulfilled his initial burden, the Appellate Division concluded that the MSA's "triggering language" constituted the "equivalent of a changed circumstance" which, when met would allow a trial court to consider a modification application without the moving party having to establish the initial burden of proving additional changed circumstances (it actually relied on its own prior decision in this matter in so finding).  Since Ron had played in the minor leagues for more than 60 days, Ron did not have to prove any additional changed circumstances.  The Court noted, "In this case, the parties explicitly recognized in their agreement that plaintiff's career and earning capacity would vary over the years and that there were certain objective criteria that represented substantial changes in his income relevant to a determination of his support obligations."

Since Ron had fulfilled a "trigger" in the MSA, the Court concluded that he had also satisfied the "good cause standard" applicable to his request for discovery and a plenary hearing to determine what change, if any, should be made to his support obligation.  

This case provides an interesting glimpse into the life of a professional athlete in the context of family law.  The shelf life of such an athlete is fleeting and can end suddenly (just ask Peyton Manning, who may be on the verge of retirement due to health concerns).  Family law practitioners must, therefore, be diligent in properly structuring agreements to address these relatively unique issues.

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Robert Epstein is a contributor to the New Jersey Family Legal Blog and a member of Fox Rothschild's Family Law Practice Group. Robert practices throughout New Jersey in all areas of family law and family law litigation. You can reach Robert at (973)994-7526, or repstein@foxrothschild.com.

How to Not Settle Your Case

Having just experienced several months of "interesting", to say the least, negotiations on several matters, it got me thinking about creating a list of things to do if you really don't want to settle your case.  Hey, every body is entitled to their day in court if they want it. So what if there is nothing that can be gained from it.  So what if you can't win.  So what if forcing the matter to trial will create other legal issues.  So what if trial will cost tens of thousand of dollars.  Here is the list:

10.  Ignore your expert's advice.  What do they really know about the value of your business or how a judge will likely assess your total income/cash flow?  What does an accountant know about taxes, or more importantly, how the IRS may address the creative accounting practices that you or your business have employed?  What does the custody expert really know? 

9.  Ignore your lawyer's advice.  What do they know anyway?  If your lawyer is telling you that you should jump at the deal on the table because it looks like a huge win, disregard it.  If they tell you that you have real exposure on certain issues or may be forced to pay your spouses legal fees, roll the dice. If your attorney tells you that they are willing to try your case, but that you should consider settlement because the cost of the settlement will be less than the cost of the trial plus the absolute minimum you have to pay, don't believe it.  And what does your lawyer know about the law or the judge anyway?

8.  Ignore the facts of your case.  Trust your ability to spin the facts in a way that doesn't make sense.  Plus, how can they prove if you're lying.

7.   Ignore what the neutrals are saying.  What do the Early Settlement Panelists know?  What does the mediator know?  When the judge has a settlement conference and gives directions, what does she/he know?  Assume that the people that have no "horse in the race" are aligned with your spouse or their attorney, have been bought off, or are just plain ignorant.  Really, it has nothing to do with the facts of your case or the reasonableness of your position.

6.  Ignore the law.  It doesn't apply to you anyway.

5.  Continue to misrepresent things, even when the other side has documents to disprove virtually everything you are saying.  Assume that you will be deemed more credible than the documents.

4.   Believe that the imbalance of power that existed during the marriage will allow you to bully your spouse into an unfair settlement.  Assume that your spouse's attorney wont try protect her/him.  All lawyers roll over on their clients, right?

3.   Take the position that you would rather pay your lawyer than your spouse. Ignore that fact that this tactic usually ends with your doing both, and maybe your spouse's lawyer too.

2.  Pretend as if your spouse never spent a second with the kids in the past and has no right to do so in the future.  Make false allegations of neglect or abuse.  Ignore the social science research that says that it is typically in the children's best interests to spend as much time as possible with each parent.  What do the experts know about your kids anyway?  And while you are at it, bad mouth your spouse to or in front of the kids. Better yet, alienate them.  Then fight attempts to fix the relationship.

1.   Take totally unreasonable positions implementing any or all of above and on top of that, negotiate backwards.  Ignore the maxim "Pigs get fat, hogs get slaughtered."  Put deals on the table and then reduce what you are offering.  Negotiate in bad faith.  Negotiate backwards.  Don't worry that this conduct may set your case back.

The above is clearly facetious and tongue in cheek. I do not recommend this behavior.  It is usually self destructive and short sighted.  But, believe it or not, these things happen all of the time.  While I am not saying that no case should ever be tried, because sometimes trials are necessary, if you want to ensure a costly trial that may not go well for you, try the things on this list.  And if it is your day in court that you want, be careful you wish for.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Everything You Say Can and Will Be Used Against You in a Court of Law - Especially if you said something different in another court

We have all seen and heard those familiar words in the title of this entry in moves or on TV.  This is part of the "Miranda" warning administered by a police officer when they are arresting someone.  Do these words also have a place in divorce court?  Not in the same way, but in reality they do.

Other than settlement communications, attorney/client and other privileged communications, everything else is just about fair game.  That is why Facebook, emails and texts have become such a treasure trove in divorce cases as people freely put things in writing that they might not otherwise say, and perhaps even broadcast it to the world.

But what about what you say in another court in another case?  Can that be used against you?  Sure can.  The concept is called judicial estoppel, and it was on display again yesterday in the unreported (non-precedential) decision from the Appellate Division in Romano v. Romano.

Without getting in to all of the details of this case, the relevant details relating to judicial estoppel are as follows,  On the wife's name was on the deed of the marital home, a finding made by a judge during a domestic violence trial, despite the husband claiming he was on the deed.  Thereafter, the husband filed for bankruptcy relief.  In that filing, he answered "none" on the part of petition asking if he had a legal or equitable interest in any real property.  In the later divorce case, he listed the aforementioned home as a marital home subject to equitable distribution. 

The trial judge awarded the home to the wife based on the husband's representation to the bankruptcy court that he had no interest in the property.

The Appellate Division affirmed, noting:

Judicial estoppel is intended to protect the integrity of the judicial process. Cummings v. Bahr, 295 N.J. Super. 374, 387 (App. Div. 1996) (citing Edwards v. Aetna Life Ins. Co., 690 F.2d 595, 599 (6th Cir. 1982)). It "operates to 'bar a party to
a legal proceeding from arguing a position inconsistent with one previously asserted.'" Id. at 385 (quoting N.M. v. J.G., 255 N.J. Super. 423, 429 (App. Div. 1992)). The doctrine "prevents litigants from 'playing fast and loose' with, or otherwise manipulating, the judicial process." State v. Jenkins, 178 N.J. 347, 359 (2004) (quoting N.J. Dep't. of Law & Pub. Safety v. Gonzalez, 142 N.J. 618, 632 (1995)). "Central to that concern is the principle that a litigant should not be allowed to
mislead courts by having one tribunal rely on his or her initial position while a subsequent body is led in a different direction." Ibid.

The applicability of judicial estoppel as a complete bar to a subsequent inconsistent claim arises "when a party advocates a position contrary to a position it successfully asserted in the same or a prior proceeding." Ali v. Rutgers, 166 N.J. 280, 287
(2000) (internal citations and quotations omitted). A prior successful assertion of a contrary position is required because "[a] party is not bound to a position it unsuccessfully maintained" in a prior lawsuit. Id. at 288 (internal citations and quotations omitted). As with most judicially crafted remedies, judicial estoppel should be invoked only to prevent a miscarriage of justice. Ibid.

Here, John's conduct provides almost a textbook example of facts calling for the application of judicial estoppel. By his own admission, John advanced inconsistent positions regarding his interest in the marital home. John failed to disclose his
alleged interest in the home in the petition he filed under oath before the federal bankruptcy court.   In addition, John filed an amendment to his bankruptcy petition in September 2010, but did not alter this critical detail. A bankruptcy plan was subsequently approved based on John's financial representations.

John's testimony that his bankruptcy lawyer advised him to deny any ownership interest in the marital home does not absolve him of responsibility for his  certification. John did not call his bankruptcy attorney to testify as support for his assertion. Certainly, a witness should not be permitted to hide behind the
unsubstantiated excuse that his lawyer told him to lie on a sworn document.
John's assertions in support of this action before Judge Becker are materially irreconcilable with the position he adopted before the federal bankruptcy court. The judge did not abuse his discretion in finding that John was attempting to manipulate the legal system to his advantage and to the disadvantage of his creditors and Dana. The application of judicial estoppel is warranted under such circumstances.

The bottom line is that you cannot select a different story to get the best result based upon the audience at the time. When you do, whatever you say can and will be used against you in the next proceeding, as the husband found out in this case.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Read Melissa Brown's Interesting Article Entitled "Jurists & Lawyers Ignorant of Social Media Can Unintentionally Harm Litigant's and Clients"

Melissa Brown, an attorney in Charleston, South Carolina, is a fellow of the American Academy of Matrimonial Lawyers and one of the preeminent family lawyers in South Carolina.  I had the occasion, last week, to read her excellent article on her blog entitled "Jurists & Lawyers Ignorant of Social Media Can Unintentionally Harm Litigant's and Clients."  I thought that the article was so good that I asked Melissa if I could re-post it as a guest blog on this blog, and she graciously agreed.  Her article is as follows: 

In a lengthy opinion following a discovery motion in a personal injury case, Judge Richard Walsh of Franklin County, Pennsylvania ordered Plaintiff to disclose her login information for her Facebook account. Defense counsel had argued that Plaintiff had previously posted photographs and comments about her going to the gym and enjoying activities that she had previously testified under oath that she could no longer do as a result of the accident.

Apparently, at some point in the past, Plaintiff’s Facebook profile was “public” and accessible by defense counsel. On that basis, the judge granted defense counsel unfettered access to Plaintiff’s Facebook account. The judge wrote in a footnote, “The Court does not hold that discovery of a party’s social networking information is available as a matter of course. Rather, there must be a good faith basis that discovery will lead to relevant information. Here, that has occurred because Jennifer Largent’s profile was formerly public. In other cases, it might be advisable to submit interrogatories and requests for production of documents to find out if any relevant information exists on a person’s online social networking profiles.” However, despite the footnote commentary, Judge Walsh ruled that Plaintiff has to give over her username and password for her Facebook account thereby granting defense counsel access to Plaintiff’s messages and chats that are never “public” or accessible except to the individual to whom such messages are sent. In addition, by allowing unfettered access to Plaintiff’s account, Judge Walsh’s ignored his own observations that defense counsel was only entitled to information that could lead to discoverable evidence. One has to wonder if Judge Walsh understood the overly broad nature of his order and if Plaintiff’s attorney tried to protect his client by arguing that such ruling was overly broad and intrusive.

This author only has access to the court’s order and knows nothing else about this case. However, it seems clear that Judge Walsh is unfamiliar with the multiple functionalities of Facebook. One wonders if he knew he was granting access to chat logs and private messages in addition to “publicly” posted information. One also wonders if Plaintiff’s own attorney possessed enough information about the various components of Facebook to object to the Court’s ruling as overly broad or to offer less intrusive remedies to permit access to properly discoverable information while still protecting his client’s private (and irrelevant) information.
 

Another Pennsylvania judge wisely crafted a much more narrow remedy for this problem.  This past June 2011, Magistrate Judge Carlson, of the Federal District Court of the Middle District of Pennsylvania, struck a careful balance between the litigant’s rights to discover relevant information and the opposing party’s right to keep private, irrelevant matters private.  Thus, unlike Judge Walsh who ordered a Plaintiff to hand over her user name and password, Judge Carlson ordered an in camera review of the Facebook page of the party’s Facebook page and then ordered disclosed only those items it believed could lead to discoverable evidence.

What is concerning is the general lack of knowledge within the Bar and the judiciary about other remedies that are readily available to address access to another party’s social media account.   Judge Walsh could have issued a protective order that limited the use or dissemination of Plaintiff’s Facebook information or ordered in camera review by an independent third party.

Instead, Judge Walsh gave defense counsel a twenty-one day period in which defense counsel could rifle through Plaintiff’s Facebook account accessing all settings, messages, chat logs, photo albums, and the like. (While defense counsel, whom I do not know, is likely an attorney of the highest ethical caliber, Judge Walsh’s order contained no restrictive language to protect Plaintiff’s information and to prevent defense counsel from sharing it with others, including his own client.)

While I disagree with Judge Walsh’s overly broad order, I do agree that posts to one’s Facebook Wall could reasonably be considered public posts even if the account is restricted. Therefore, such “Wall posts” are and should be discoverable as noted by Judge Walsh.  (My guess is that this is the only information Judge Walsh intended for defense counsel to obtain, but if he did not use or understand Facebook, he would not know that there is much more to Facebook than Wall posts.)

This flawed ruling is likely to happen again so be forewarned and do not let it happen to you if you are a litigant or to your client if you are the attorney.  The best way to access historic Facebook data is to obtain information through the Facebook’s data downloader.  Such records can easily be downloaded and then third parties could be ordered to review the information and remove any protected material or materials not likely to lead to discoverable information.  This simple solution is not only less intrusive but is also likely to produce more accurate and admissible evidence.

In an era where many people think Mark Zuckerberg is starting to look a lot like the new J. Edgar Hoover because he keeps a record of every stray photo, comment, or poke ever posted by a Facebook user, lawyers must educate themselves and their clients about the realities of social media and advocate for their clients by keeping abreast of social media and other uses of the Internet.   Lawyers who do not pay attention to how the world and their clients operate technology run the very real risk of losing not just cases and cash, but also their licenses to practice law.

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Melissa's article provides excellent information regarding this developing area of the law and piftalls attendant to it.  I thank her again for allowing us to share it with our readers.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Appellate Court Approves the Use of "Rule of Thumb" Formula to Calculate Alimony - Sort Of

In August 2011, I posted an article on this blog entitled "Appellate Court Rejects 'Rule of Thumb' Formula to Calculate Alimony - Sort Of."  In that article, I noted that there was a dirty little secret used by judges and lawyers in New Jersey to come up with a "ball park" as to what alimony should be. This "rule of thumb" does not take into account all of the statutory factors. Rather, the formula simply subtracts the lower income (real or imputed) from the and multiplies the difference by a percentage. I have been told that that percentage is 30% or one-third in the northern part of the state and 25% in the southern part.

More importantly, I noted that judges really cannot use this formula and must make findings considering the law and all of the statutory factors.  This post was as a result of a case where the judge seemingly used the formula to determine alimony.  The Appellate Division remanded the matter to the trial court to determine alimony using the alimony factors.

So much to my surprise, a new case came out yesterday emanating from a legal malpractice case filed by a litigant against her divorce attorney.  Lo and behold, the Appellate Division notes that using this "rule of thumb is an appropriate way to calculate alimony. 

In the underlying divorce case, which was noted as contentious, the parties were married for 22 years. They had two children.  The husband's (who was a lawyer) average income over the 3 preceding years was $246,000.  The wife's earning history was $42,000 per year.  Under most factors in the alimony calculus, this should have been a permanent alimony case - except the husband apparently did not want to pay permanent alimony and long and acrimonious negotiations ensued.  Without getting in to specifics, it is alleged that the wife was ultimately pressured by her attorney into accepting less alimony than she might have received and limited duration alimony.  She alleged that she received inadequate consideration for waiving permanent alimony under the circumstances.  As a result, she filed a legal malpractice action.

Her expert in the malpractice action issued a report, in which she cited the rule of thumb as a means to calculate alimony to show that the amount was insufficient. The wife's divorce attorney moved for summary judgment saying that this was a net opinion.  An expert's opinion must be based upon facts or data and cannot be speculative. Moreover, the opinion must be based upon generally accepted objective standards of practice. The divorce lawyer's motion was granted by the trial court and the case dismissed.  The Appellate Division reversed this finding. 

Of note, the rule of thumb was embraced:

Consequently, the expert opined that the accepted standard of care required Grayson to recognize that plaintiff would be entitled to permanent alimony and to act accordingly. So
measured, the expert concluded that the settlement in this case was substantially below the range of award she most likely would have received at trial because plaintiff waived her entitlement to permanent alimony in exchange for a lump sum $50,000 payment;
gave up her right to receive an award of counsel fees for no apparent consideration; and abandoned her option to retain the marital home worth $720,000 for only her rightful one-half share of the equity therein.

The expert laid the foundation for this conclusion, detailing step-by-step the methodology she employed. Before quantifying the amount of anticipated alimony to be awarded at
trial, the expert correctly recognized — citing Crews v. Crews, 164 N.J. 11 (2000), and Lepis v. Lepis, 83 N.J. 139 (1980) — that the purpose of alimony is to allow the dependent spouse to enjoy the standard of living she had during the marriage and
that the other spouse should pay alimony in that amount, if he is able to. The expert then estimated the range of yearly permanent alimony to be between $65,000 and $72,000 based on each party's historical earnings and utilization of a formula widely accepted amongst members of the matrimonial bar.

As to the former, the expert used the average of the husband's income over several years to account for spikes and dips in his solo law practice, and arrived at a range of between $200,000 and $250,000 annually. Plaintiff, on the other hand, after returning to work in 1999, averaged about $42,000 per year. The expert then derived a yearly alimony figure by taking one-third of the difference between the spouses' incomes. In doing so, the expert relied on a generally accepted objective standard of matrimonial attorney practice and not simply a standard personal to her. See Fernandez v. Baruch, 52 N.J. 127, 131 (1968). She also opined, based on her experience, that the ultimate alimony award would be in the higher estimated range because the weight of statutory factors — the couple's age, established standard of living, and large disparity in income and earning capacity — heavily favored plaintiff and therefore justified the upward adjustment.

In determining that the expert's opinion was not a net opinion, the account accepted that the expert employed "a generally accepted professional standard" to calculate alimony. While the court noted that the expert's report was not beyond attack at trial, the plaintiff had a right to have the jury determine the credibility and weight of the evidence.

So the take away from this case is that the rule of thumb likely exists as a valid tool to estimate alimony.  However, if there are special circumstances, the factors still have to be considered.  Whether judges can use it remains unclear but is probably unlikely. 

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

The Anti-Climactic End of the Tannen Saga - The Supreme Court Weighs In, Sort Of

A little more than a year ago, we blogged on the reported Appellate Division Case, Tannen v. Tannen, which addressed the issue of trusts in the context of family law cases.  Relatedly, we blogged on the impact of income from a discretionary trust and whether it reduced a party's need.

In Tannen, the trial court, relying on the newest version of the Restatement of Trusts, required the trustee of a discretionary trust to make distributions to the beneficiary of the trust. Though the trust assets earned significant income, there was no requirement in the trust document for the distribution of the income to the beneficiary. 

The Appellate Division reversed, holding that by applying existing law, which has incorporated various provisions of the Restatement (Second) of Trusts, Wendy’s beneficial interest in the Wendy Tannen Trust was not an “asset held by” her for purposes of N.J.S.A. 2A:34-23(b)(11) of the alimony statute. As  such, the panel determined that no income from the Wendy Tannen Trust should have been imputed to Wendy in determining Mark’s alimony obligation. Addressing the trial court's reliance on the newest Restatement, the Appellate Division noted:

[a]s a court of intermediate appellate jurisdiction, we do not presume to adopt the Restatement . . . as the law of this state and apply its provisions to the facts of this case. Given the significance of its principles in the context of [the New Jersey statute dealing with the power of a court to impute income to a party in a divorce action), such determination would be more appropriately made by our Supreme Court.

As a result, as practitioners, we all awaited the Supreme Court's decision on this expecting that they would tell us one way or the other whether trial court's rationale would become the law of this state.  Doing so might have weakened the sanctity of trusts, but might have been consistent with the jurisprudence of this State that is typically deferential to and supportive of the support recipient for public policy reasons. 

The Supreme Court decided - drum roll please - :The judgment of the Appellate Division is affirmed,
substantially for the reasons expressed in Judge Messano’s opinion of the Appellate Division reported at 416 N.J. Super.248 (2010)."  This one sentence opinion is an anticlimactic end to what could have been a very interesting discussion of an important legal issue.  Because Judge Messano deferred to the Supreme Court on a policy issue, as a student of the law, it would have been interesting to hear our high court explain their rationale given the limitations that the Appellate Division expressed in their opinion.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric is resident in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501 or esolotoff@foxrothschild.com.

 



 

In a Long Term Marriage, Length of Marriage May Trump Age in the Alimony Calculus

Right before the Thanksgiving holiday the NJ Appellate Court came out with an unpublished decision yet again reminding trial courts when permanent alimony should be permanent and not something else.  While there is no bright line, black and white rule written about the magic number of years that would entitle a spouse to permanent alimony, there are certainly some general facts that assist attorneys and judges alike in determining when a case is appropriate for permanent alimony.  This decision reminds us of those.

In the matter of Happold v. Happold, A-2792-10T1, decided November 21, 2011, the Appellate Court reversed and remanded (to a new judge in the trial court) a decision, which awarded the Wife 10 years of limited duration alimony instead of permanent alimony.  The relevant facts are as follows:

1. The parties were married for 21 years at the time the Complaint for Divorce was filed.

2. The parties were ages 42 and 43 at the time of the Complaint.

3. Three children were born of the marriage, one was emancipated before the trial.

4. The Wife became pregnant with the parties' first child at the age of 16, when she was in the 10th grade.  Husband was in 11th grade at the time.  Wife dropped out of high school only completing a 9th grade level of education.  Husband continued in school and graduated.

5. One year after their first child's birth, Wife moved into Husband's parents' home with Husband.  Wife never worked outside the home during this time.  Husband completed high school and began working.

6. The parties' two other children were born in 1993 and 1995.  While Husband worked outside the home and his career continually advanced, Wife remained at home as the sole caretaker for the children and the home.

7. During the marriage, Husband controlled the parties' finances except for a jointly held savings account intended to give Wife immediate access to money if Husband died.

8. At the time of the trial and during the last year of the marriage, Husband's income was $238,500 and $215,000 respectively.

Wife testified that during the marriage, Husband prohibited her from working and being involved in the finances claiming she was "too stupid to handle the bills".  While their lifestyle expenses differed on their Case Information Statements, Wife testified that she was unaware of what and how much their expenses were because Husband controlled these items. 

After trial, the court rendered a decision on the validity of a prenuptial agreement, Wife's request for alimony, and Wife's request for counsel fees.

The court held the prenuptial agreement was unenforceable. This ruling remains unchanged.

The Court reversed the award of ten years of limited duration alimony stating it "ignores well settled precedent that absent exceptional circumstances not present here, permanent alimony is appropriate in the case of a long-term marriage like that of the parties."  In it's opinion, the Court supported this decision by holding that the Wife's economic dependency on the Husband pre-existed the marriage by 5 years.  Also, the lower court's findings on the statutory factors, which guide courts in awarding the type and length of alimony "was conclusory and cursory".  The Court went on to add a footnote specifically addressing that high school drop-outs, especially those beyond their mid-twenties, face the highest rate of unemployment in our society.

In its lengthy critique of the trial court's decision, the Appellate Court also noted that the lower court failed to give adequate recognition to the Wife's "extreme dependence" on the Husband.  The relatively young age of the parties at the time of trial did not outweigh the duration of the marriage and other relevant factors, which support an award of permanent alimony in this case.

Lastly, the Appellate Court vacated the trial court's decision to award the Wife only $5,000 in additional counsel fees based upon a finding that the Wife "maintained unreasonable positions at trial and declined to settle the case along lines similar to the court's ultimate judgment".  The Court held that the trial court deviated from Rule 5:3-5 and failed to address the specific factors outlined therein.  More importantly, the award was reversed because of the trial court's "mistaken rejection of [the Wife's] permanent alimony claim tainted its assessment of "the reasonableness and good faith of the positions advanced by the parties," and the "results obtained"." 

Lesson learned: Limited duration alimony was not appropriate in a case with these facts.  Assess your situation in light of all the statutory factors and the precedent set by the relevant case law.  At least in this case, the other lesson is that the length of economic dependency trumped the relatively young ages of the parties at the time of the divorce.

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Sandra Fava is a contributor to the New Jersey Family Legal Blog and a member of Fox Rothschild's Family Law Practice Group. Sandra practices throughout New Jersey in all areas of family law and family law litigation. You can reach Sandra at (973)994-7564, or sfava@foxrothschild.com.

Has the "Off the Shelf" Parenting Plan Gone the Way of Rabbit Ear TV Antennas?

A few years ago, during a conference with a reasonably new judge used the term "off the shelf parenting plan" to describe what he assumed a normal parenting time plan should be.  This plan was alternate weekends, Friday to Sunday night, and one night per week for dinner.  While my client was happy, because she did not want her husband to have more parenting time, with all due respect to the judge who became a very good family court judge just in time to be rotated to another division, was he right?

If this was the 1970s, 1980s or before, perhaps he would be right - or at least that was the prevalent parenting plan at the time.  However, parenting roles, societal norms and more importantly, psychological and social science research have come a long way since then.  Time and again, you no read and hear that, in most cases, children benefit from as much time as possible with both parents.  This does not necessarily mean an equal schedule and also must be adjusted for the ages of the child(ren).  For instance, a proper parenting plan for an infant or toddler, is different than for an older child.  In fact, for infants, there is a lot of research suggesting that overnights are not appropriate, but that more frequent visits are appropriate.  Much of the literature breaks things up as follows:  birth to 2 years; 2 to 3 years; 3 to 5 years; 6 to 9 years; 10 to 12 years; and teenagers.

What is clear, however, if a non-custodial parent wants substantial overnights with their children, assuming that that the kids are over 5, more likely than not, an custody expert will more likely recommend some type of shared parenting schedule, including perhaps true, shared 50-50 parenting. What do I mean by shared parenting? Between 5 and 7 out of 14 overnights. 

As such, if one party is trying to restrict parenting time, I will often suggest that my client seek a custody expert (joint or their own expert) because of the likelihood that absent some problem (psychological issues, abuse issues, substance issues) or logistical issues (the parties live too far apart to make shared parenting work), most experts usually recommend some type of shared parenting because that is what the research suggests is in a child's best interests. 

Are experts making this recommendations only for super involved parents?  Not necessarily, though the more involved the parent has been, the more likely that they can get a 50-50 plan or 6 out of 14 overnights.  Because sometimes judges (as well as mediators and arbitrators) are not always aware of the current developments in the research, the attorney for the party seeking more time has to educate the judge, mediator or arbitrator.  Sometimes that means getting an expert.  Other times, especially if during a motion early in a case, it may mean filing a brief citing and attaching the articles.

The take away here is that it is rare that a parent has to settle for alternate weekends and one night for dinner if they seek more parenting time. 

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric is resident in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501 or esolotoff@foxrothschild.com.

Changes in the Value of a Business Post-Complaint

A few weeks ago, I posted a piece on this blog about the business valuation concept known as reasonable or replacement compensation.  After that post, I received an email from a well known business valuation expert, Sam Rosenfarb of Rosenfarb LLC, with an attachment containing an article that he wrote regarding the issue of the change of value of a business after the date of Complaint for Divorce.  That article along with the ever growing backlog in the family courts created by the budget crisis and other factors got me thinking more about this topic. In some counties, it may be more than three years to get a trial date at this time.

Why is this important?  In New Jersey, passive assets (e.g. real estate, bank accounts) are typically valued as of the date of distribution.  On the other hand, active assets, such as a business, where the value could be tied to the efforts of the business owner, are typically valued as of the date of the divorce Complaint.  As such, in your typical case, the increase or decrease in value post-complaint is not considered though there is an ability to raise the issue in extreme circumstances.

This issue was relevant in a case that both Sam and my prior firms were involved in where it took nearly a decade for the case to get to trial and where the business increased in value substantially over that time.  That case started before New Jersey implemented "Best Practices" wherein, systemically, the goal was to get all cases resolved in a year.  Even cases that were more complicated and which had business valuation issues, could usually get a trial date within 18 months.  As such, the days of the 4 year, 5 year or longer case, where changes in value would likely occur, became less the norm as they had been before "Best Practices."

Backlogs are now increasing as there are less judges available to try divorce cases.  As a result, the issue of active vs. passive change in value while a divorce case is pending may become more prevalent. 

In these cases, lawyers and experts may need to scrutinize if there was a change in value, and if there was a change, why it occurred.  Some might argue that to the extent that the change is value is due to passive reasons, such as market forces, that the date of complaint valuation date may not be fair to use.  Some, including Sam, posit that perhaps the active change in value should not be considered for purposes of equitable distribution, but the passive piece, might possibly be considered.  The process is seemingly a two step one.  First, determine whether there was a change in value and second, determine the reason, for the change in value. Of course, as Sam notes, the causes of a change in value may not be subject to precise determination. 

In practice, there will seemingly be a discovery fight if the non-titled spouse wants to get post-complaint information to perform a second valuation.  The owner spouse will, no doubt, argue that this is active, that this will increase the costs and that this will delay the resolution.  On the other hand, the eleventh factor in the equitable distribution statute is "the present value of the property."  As such, whether or not the increase in value is distributable, it remains a factor that the court must consider.

In any event, as this may return to the forefront as an issue to consider, divorce attorneys and their experts must be prepared to address it. 

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric is resident in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501 or esolotoff@foxrothschild.com.

THE EMERGING ROLE OF OBESITY IN CHILD CUSTODY CASES

I read an interesting article on The Wall Street Journal.com about the ever growing use of a a child's battle with obesity as a tool for leverage in custody battles to prove one parent is unfit and therefore, should not have custody or should have a reduction in parenting time.

In some cases, parents are blaming a grossly overweight child on the other parent.  In others, it is the use of a child's diet (too much soda, fast food, potato chips) as evidence of bad parenting.  There are also those cases where one parent uses the obesity of the other parent to argue that he or she is simply physically unable to care for the children.

According to a sample of family lawyers from across the country, arguments like the ones above are being heard and utilized more frequently in family courtrooms.  For judges in New Jersey, and many other states, the standard when deciding these issues is what is in the best interest of the child.  The state of Pennsylvania recently altered its definition of best interest to include the physical and emotional well-being of a child.

The article goes on to tell us that "according to the Centers for Disease Control and Prevention, approximately 17%, or about 12.5 million, of the nation's children and teens are obese. Since 1980, according to CDC statistics, obesity rates have nearly tripled."  The statistics are staggering.

Social scientists, legal experts and law professors agree that the rising statistic of both childhood and adult obesity will lead to continuing changes in the law, particularly as the law relates to custody and parenting time.  Thus far in New Jersey, no specific factor of weight or nutrition has been added to our best interest of a child definition/standard.  While there is no doubt that practitioners across the state have likely dealt with the issue in at least one facet, there is no published law which directly addresses these issues.  That said, the article raises an interesting perspective on how a child and/or a parent's weight and dietary habits may be considered in contested custody matters. 

 

What Happens When the Judge Ignores Trial Stipulations

Trials in divorce matters are kind of like the Loch Ness monster - lots of people of heard of it, but few have actually seen it.  The system is currently set up such that there are many vehicles to get people to a settlement.  Moreover, most cases should be settled.  In fact, as I have blogged in the past, the cases that often get tried are ones where one, if not both parties, are totally unreasonable and unrealistic. As noted in prior blogs,there are, however, bona fide cases that cannot be settled and must be tried.

Many judges have a pre-trial Order or letter citing requirements of things that must be done before trial.  One of the things often on the list is that counsel are supposed to confer to to see if the can reach any stipulations as to facts, and sometimes legal issues.  Court's have noted that "stipulations serve as a tool that enables parties to avoid the expense, trouble, and delay of adducing proofs on facts that, absent a stipulation, are contestable."  Though I have one colleague that refuses to enter in to stipulations because he feels that it throws off the flow or leaves holes in his presentation, generally, stipulations are a good thing because it cuts down on what is already limited trial time. 

Courts often also require parties to confer about joint exhibits for the same reason.  Once the parties agree, the exhibits are marked and should go into evidence without the need for authentication of other testimony.  Examples of things that are commonly joint exhibits are tax returns, bank records, prior court orders and transcripts, credit card records, and the like. 

The question then is, does a trial court have to accept the stipulation, and if they don't, what is supposed to happen.
 

This issue came up this week in the unreported (non-precedential) case of Hertzoff v. Hertzoff.  In that case, the parties entered in to a number of stipulations which the trial judge ignored, especially as it related to equitable distribution. 

Getting back to the questions asked above - a trial judge does not have to accept the parties' stipulation.  In this case, the Court noted that the law is as follows:

As a general rule, "litigants should be held to their stipulations and the consequences thereof." Ibid. Nonetheless, a trial court has the authority to override a stipulation in certain circumstances:

 [I]n the rare instances in which the circumstances . . . justify the court's              rejection of the parties' stipulation, the party losing the benefit of  the stipulation
must still receive his day in court with respect to the stipulated issue. This
requires that the litigant who is being prejudiced by the court's non-adherence to
the stipulation be given the same opportunity to present his proofs as he
would have received had the stipulation not been entered on the record.

So, while the court is free to reject the stipulation, the judge must let the parties know and give them an opportunity to adduce proofs regarding the issue(s) for which the stipulation(s) was rejected.  Failure to do so may result in a reversal and a new trial.

Biological Parents Have Presumption of Custody Vs. Third Parties

Yesterday, I blogged about the constitutional protections given to parents when in a custody dispute with a grandparent, including whether a psychological parent receives the same protections that a biological parent receives in such disputes (the answer is no - but you knew that because you read yesterday's post.)

A related topic is what is the standard to apply when a biological parent is in a custody dispute with a third party.  On the same day that the Appellate Division decided the case I blogged about yesterday, they also decided the case of Schwear v. Prigge and Schwear though that case is unreported (non-precedential). This case involved a custody dispute between a natural mother and her child's paternal uncle.  I will spare you the tortured history of the case and focus on what the law is. 

Custody disputes between a natural parent and a third party are governed by Watkins v. Nelson, 163 N.J. 235 (2000).  As the Court in Schwear noted:

In such a dispute, there is a presumption in favor of the natural parent which arises from a parent's "fundamental liberty interest protected by the Due Process Clause of the Fourteenth Amendment to the United States Constitution" and is "rooted in the right to privacy." ... The parent's right to custody is not absolute, however.The presumption in favor of the parent will be overcome by "a showing of gross misconduct, unfitness, neglect, or 'exceptional circumstances' affecting the welfare of the child[.]" 

When a third party seeks custody, the court must engage in a two-step analysis. First, the court must determine whether the presumption in favor of the legal parent is overcome by either a showing of "unfitness" or "exceptional circumstances."
If either is satisfied, the court must then decide whether awarding custody to the third party would promote the best interests of the child. (Citations omitted).

The rights of a parent have constitutional implications.  As such, whenever they might be abridged, there is a heightened scrutiny that much be applied.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

ECONOMIC COERCION DOES NOT ALWAYS DO THE TRICK

Oftentimes, a less economically able party is faced with a spouse or former spouse who insists on litigating time and again simply because they can, hoping that the "war of attrition" will force the other party to give them what they want to avoid further motion practice.  We as family practitioners know that while the Rules of Court provide a party with the ability to seek a counsel fee award from the other party for a variety of reasons including, but not limited to, "evening the financial playing field," assisting a party in need where the other party has the ability to pay, or, commonly, addressing the other party's unreasonable behavior, courts do not always award fees even in what may seem like an obvious situation to do so. 

For example, a party bringing a motion to enforce litigant's rights may not receive an award of fees even if they tried to settle to no avail before filing the motion, especially where the other party "remedies" the issues before the Court actually decides the motion.  Of course, the motion would not have been filed had the other party earlier complied, but the effort to render issues "moot" after the motion is filed oftentimes sways a court not to award fees even though it was the motion itself that compelled compliance.

I recently dealt with the "war of attrition" litigant, who has filed the same motion against our client time and again - literally, the same motion each and every year post-divorce.  In each of the three years since the divorce, he was denied his requested relief in three separate motions.  As sure as the sky is blue, the former spouse again filed a motion this year - his fourth - for the very same type of relief as to parenting time.  Notably, the former spouse also retains a different attorney for each motion in an effort to cleanse the court's palette.  In two of the three prior denials of his requested relief, he was Ordered to pay our client substantial counsel fees since he makes six times the annual income of our client, and his repeated efforts to financially pressure our client into getting what he wants have proven transparent in the eyes of the court.

On this fourth occasion, the story was the same and, thankfully the result - a denial of the former spouse's requested relief and an award of full counsel fees for our client.  While the immediate result was positive, as it has been after each prior motion, I have no doubt that the former husband will again file a motion for the very same relief in 2012, 2013 and beyond until the child is emancipated upon whom the requested relief was based.  While one can only hope that our client will continue to successfully fend off his attacks, the more unfortunate problem is that she cannot stop him from filing his motions.  In fact, when he was denied time around, he verbally questioned the judge, incredulous that he would be denied again despite the lengthy history of denials and him being found to have not only acted unreasonably, but in bad faith, as to his litigation tactics.  It was this response that only further confirmed that we will be back in court next year, starting anew the annual litigation cycle that not only leaves our client financially drained, but also causes great emotional strain upon her and her family that cannot be remedied by a mere award of counsel fees.

DENIAL OF ORAL ARGUMENT STRIKES AGAIN

We have blogged before on the increasing trend by trial courts to deny litigant's an opportunity to engage in oral argument in motion practice.  Rule 5:5-4 of the New Jersey Rules of Court provides that "the court shall ordinarily grant requests for oral argument on substantive and non-routine discovery motions . . . ."  Considering the highly overburdened court calendars currently plaguing the family court system in New Jersey, a trial court's reluctance to hear oral argument is understandable if it believes such argument is unnecessary based on the underlying papers before it.  However, oral argument is generally required where such substantive issues are raised and oral argument is requested so that a litigant has a full opportunity to present his or her case.

That brings us to the Appellate Division's recently unpublished (not precedential) decision in Rains v. Rains.  There, the former husband filed a motion to terminate or modify his alimony and life insurance obligations based on the former wife's inheritance received post-divorce.  The husband's application and wife's opposition each included a Case Information Statement presenting disparate pictures of the marital lifestyle for reference by the trial court in analyzing husband's claims for relief (not surprisingly, husband's presented marital lifestyle was far lower than that portrayed by wife).

Each party also submitted detailed proposals on the rate of return wife would receive on her inheritance.  Again, not surprisingly, husband proposed a rate of return higher than that posited by the wife based on a slightly more aggressive approach. 

Both parties requested oral argument, but the trial judge denied such requests and entered an Order with an accompanying statement of reasons that, in part, terminated the alimony obligation.  In the statement of reasons the trial court justified its basis for denying oral argument, but then proceeded to impute a reasonable rate of return on wife's inheritance based on a methodology proposed by neither party in their respective applications.  Since oral argument was denied, the parties were also denied the ability to contest the methodology unilaterally chosen by the court.  Notably, the statement of reasons also did not include a determination as to the parties' marital lifestyle, concluding that such a finding was unnecessary because the parties voluntarily entered into a settlement agreement without making a lifestyle determination. 

Reversing the trial court's decision, the Appellate Division found that the rate of return methodology employed by the trial court should have been the subject of oral argument by the parties, especially since the case law from which such methodology was derived was not applicable in all cases.  The Appellate Division found that the trial court should have considered the fact specific circumstances before it to determine a reasonable rate of return.  On remand, the trial court was to, among other things, make a finding as to the marital lifestyle. 

Most importantly, though, was that the parties would be able to more fully present their arguments as to a reasonable rate of return on wife's inheritance as it related to husband's modification/termination applicaiton.

THE USE OF MODERN TECHNOLOGY AS A FORM OF DOMESTIC VIOLENCE - THE APPELLATE DIVISION WEIGHS IN

The times, they are a'changing - at least when it comes to how the judicial system approaches harassment as an act of domestic violence in light of advanced technology used for communication.  In the newly reported (precedential) Appellate Division decision of L.M.F. v. J.A.F., Jr., the Court addressed the use of electronic communications, specifically text messages, as a form of harassment.  Those claiming an act of harassment based on electronic communications might not like what the Appellate Division had to say, as detailed further below, but the decision provides a breadth of noteworthy language in shaping what is an extremely sound, rationale and common sense methodology to approach such cases in the future.

As a refresher, harassment is defined by New Jersey statute as follows:

[A] person commits a petty disorderly persons offense if, with purpose to harass another, he:

a. Makes, or causes to be made, a communication or communications anonymously or at extremely inconvenient hours, or in offensively coarse language, or any other manner likely to cause annoyance or alarm;

b. Subjects another to striking, kicking, shoving, or other offensive touching, or threatens to do so; or

c. Engages in any other course of alarming conduct or of repeatedly committed acts with purpose to alarm or seriously annoy such other person.

Addressing the struggles faced by courts in addressing harassment as an act of domestic violence, the Appellate Division noted

The facts presented here exemplify the complexity of human interactions and the strain they place on the Family Part judges as they struggle to distinguish between the cases that merit judicial intervention and those that do not.

Further addressing such difficulties in the context of modern technology and the facts at issue, the Court first provided an online definition of "texting" from www.netlingo.com as:

[t]he act of typing and sending a brief, electronic message (less than 160 characters) via a wireless network to another person so that they can view the short message on any number of mobile or handheld devices.

Providing it's first extremely notable quotation that will likely be cited time and again as these cases become more frequent, the Appellate Division noted: 

We conclude the evidence presented here shows only the convergence of modern technology and the foibles of human judgment.  Our ability to instantaneously and effortlessly send electronic messages has created a gateway unfettered by reflection and open to rash, emotionally driven decisions.  The ease and speed by which we transmit electronic messages has also created a commensurate expectation of an equally instantaneous response from the recipient.

In the case at issue, the parties utilized text messaging as a primary mode of communication about their children.  The Court acknowledged:

[T]exting provided an efficient means of exchanging information as parents, while avoiding the personal contact associated with a telephone call or a face-to-face encounter.  The limited number of words that can be sent at any one time in a text message also minimized the risk for extraneous matters to interfere with the primary dialogue of parenting.  Despite these qualities, texting is merely a tool, a means to an end.  Without reasonable cooperation, texting can lead to the frustration and misuse we witness here.  

Under such rationale, the Appellate Division found that the text messages were not sent with the requisite "purpose to harass" to establish the occurrence of harassment.  To that end, it found notable that the former wife responded only once to 18 messages sent by the husband inquiring as to the daughter's SAT scores and that if she had "simply answered" his question, he would have stopped texting.  Instead, her decision to ignore him was found to have essentially exacerbated the situation.  

The Appellate Division also found it was improper to consider texts by the husband's current wife as evidence of harassment, since there was no evidence that the husband directed his current wife to act on his behalf.  In fact, the former wife even acknowledged that the husband's only purpose in sending the texts was to inquire about the daughter, from whom he had become estranged, and that she was only "annoyed" by the texts after choosing to ignore them.  The Court even found the husband's frustration reasonable, albeit misguided, but, since it was limited to inquiries about the children, it lacked the "purpose to harass."  

Suffice it to say, L.M.F. is a fantastically interesting decision for family lawyers, standing out in this area of the law for a variety of reasons, most notable of which is its foray into the use of electronic communications as a form of harassment.  The intelligent way in which the Appellate Division approaches this issue, especially in the context of divorced spouses trying to co-parent while keeping their emotions in check, provides great guidance for both litigants and legal counsel moving forward. While it may not be as simple, as a result, to establish an incident of harassment in such a case, the decision upon review seems to come at a perfect time in the crossroads of domestic violence law and electronic communications.

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Robert Epstein is a contributor to the New Jersey Family Legal Blog and a member of Fox Rothschild's Family Law Practice Group.  Robert practices throughout  New Jersey in all areas of family law and family law litigation.  You can reach Robert at (973)994-7526, or repstein@foxrothschild.com.

If a Tree Falls During Mediation, Can the Mediator Tell Anyone About It?

Last week, Larry Cutler posted a piece on this blog entitled "Are Mediation Proceedings Really Sacred and Secret?"  The inspiration for this post was a recent published Appellate Division case Willingboro Mall, Ltd. V. 240/242 Franklin Avenue, L.L.C.., a case in which a mediator actually filed a certification and testified.  That, however, is the exception but not the rule. 

Often enough, parties go through mediation and believe that they have reached agreement.  It happens in divorce cases, and as evidenced in Willingboro Mall, it happens in other litigations.  Can the mediator testify that (1) there was a settlement and (2) what the terms are?  R. 1:40-4(c) includes a  restriction that "[no] mediator may participate in any subsequent hearing of the mediated matter or appear as a witness . . . for any person in the same or related matter.." The reported case of Lehr v. Afflito reiterates that the involvement of the mediator is improper absent a valid waiver by both parties.

Should this be the case, however?  If the ultimate issue as to whether or not a matter was settled is in dispute, who better than the mediator to answer that limited question?  If the parties agree ta ht the matter was settled but disagree on what the terms were, who better to answer that question too?  Parenthetically, if you go on the New Jersey Judiciary Web Site, there is a form for use by a mediator which is to be submitted to the Court after mediation called the Mediation Case Information Form.  The form requires the mediator to advise the matter is fully settled, partially settled or not settled.  Seemingly, this form would not be evidential under Lehr.

Since the Court places such high importance on the settlement of a matter on a public policy basis, would requiring mediators to report these things, if there was a dispute, really up end the confidentiality of the process.  Doesn't settlement signal the end of the process? Interestingly, in Willingboro Mall, Judge Fall (a former Family Part Judge), noted the following in response to the plaintiff's position that for a matter to be settled during mediation, there must be a contemporaneous writing on the spot:

Plaintiff's position also ignores the reason for referring a matter to mediation. The process is utilized to afford the parties an opportunity to present their position before an experienced professional with the goal of resolving some or all of the differences between the parties. See State v. Williams, 184 N.J. 432, 441 (2005). In contrast to arbitration, the mediation process is non-binding only in the sense that the process is not designed or intended to impose a result on any party. Indeed, such a result is the antithesis of the mediation process. Mediation is also not intended or designed as a meaningless and impotent detour on the way to judgment. The very purpose of the process is to resolve the dispute. (Emphasis added).

People can always make one of the ground rules of mediation or a settlement conference that there is no settlement until it is reduced to a writing signed by all parties.  That said, if they don't do that and then settle at mediation, should a party be allowed to renege, or even claim that there was no deal without the one person, without a vested interest in the litigation, telling the Court about the settlement?  As ADR is becoming more prevalent, my guess is that we have not seen the last of this issue.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

ISRAELI COURT FINES WOMAN FOR REFUSING TO DIVORCE HUSBAND

Recently I blogged on the difficulties experienced by some spouses left with no choice but to abide by New Jersey's "no fault" divorce process.  Looking at the husband in "Crazy, Stupid, Love", and discussing how, if the story there took place in New Jersey, he would have to get divorced simply because his wife wanted to.  Now from the Israeli newspaper "Haaretz" comes the story of a woman who was fined 200,000 shekels (approximately $56,000) by an Israeli court for refusing to divorce her husband, even after she was directed to do so by a Rabbinical court.  

Interesting was the Israeli court's rationale for the fine, deeming it to be sufficient compensation for the wife violating the husband's autonomy.  Also interesting was the wife's rationale for refusing the divorce.  While the husband proved to the court that his wife was infertile and, as a result, should be compelled to divorce him, the wife refused to grant the divorce or participate in the process because she believed that her husband (from whom she had separated years earlier) was simply interested in another woman.  Showing just how stern the court was with its ruling, it held that the fine would stand even if the parties subsequently divorced by agreement, and that the wife could be subject to future fines if she continued in her non-compliance.

Obviously this situation would not occur in New Jersey with its no-fault divorce option.  Further, although not an issue here since it was the husband who sought the divorce, it is worth noting the complexity and nuance involved with procuring a Jewish divorce.  Under Jewish law, a "Get" is a bill of divorce that a husband gives to a wife in order to "free her" to remarry.  A secular divorce will not do the trick, as the couple's marital status will remain unchanged under Jewish tenet.  We have blogged on this topic previously.  Notably, in the United States, a wife may seek relief from a civil court for an Order directing the husband to grant the Get, such as via an action for specific performance since there really is not sufficient legal remedy to redress the wife's injury including, among other things, her inability to remarry in the eyes of Jewish law.  In the eyes of the New Jersey judiciary, compelling a husband to obtain a Get provides is for a secular purpose - the end of the marriage.

While such a situation is different from that described herein, both situations reflect the broad cultural and religious spectrum that underlies the divorce process domestically and abroad.    

THE REALITIES OF DIVORCE ON THE SILVER SCREEN

This past weekend, my wife and I saw the new film, "Crazy, Stupid, Love," the story of which revolves around a divorcing couple attempting to move on with their lives.  While I enjoyed the movie more than I thought I would, the purpose of this blog entry is not to give a movie review.  Rather, it is to focus on the theme that I took from the conduct of the husband in the movie, played by Steve Carrell, and how such conduct applies to "real life" divorce situations.

Mr. Carrell's character did not want to get divorced.  It is likely that we all know such a person.  In fact, when his wife played by Julianne Moore told him that she wanted a divorce, he unbuckled his seat belt, opened the door to a moving car, and rolled out onto the street from his passenger seat.  He then spent the rest of the movie trying to move on with his life while remaining an integral part of his family.  Had this scene unfolded in New Jersey, however, Mr. Carrell's character would have had no choice but to be divorced in this "no fault" state. 

While we have previously blogged on this topic, I was recently reminded about how this somewhat cold, hard fact can understandably be for some clients to swallow.  After years, if not decades of marriage with the same person, hearing from that person that they no longer want to be married, and then having to go through a divorce can be difficult to the point of traumatic.  The unwilling party is still trying to come to grips with a spouse who no longer wants to be married, while having no choice but to be attentive during the divorce process to protect his or her potential rights to support, equitable distribution and the like.

To that end, clients often let their focus on the root cause for the divorce or, perhaps, a desire to reconcile, overwhelm the need to pay proper attention to the divorce process.  Not surprisingly, this can be especially dangerous where the other party  has no interest in reconciling and is litigating as necessary to move forward.  Even worse, the other party may try to capitalize on your client's desire to reconcile to gain leverage in the settlement negotiation process. 

Ultimately, if one spouse wants a divorce, it is going to happen.  As matrimonial counsel, it is important to understand the very difficult, conflicting emotions experienced by your client, and even convey that understanding to your client during the course of representation.  Such an understanding will hopefully help focus your client on the divorce, and, perhaps, even aid in providing your client with a better sense of closure once the matter is complete.  It could also help your client understand that you can relate to their situation, which will hopefully lead to a stronger attorney-client relationship and representation. 

Husband's Sweat Equity Awards Him Greater Share of Marital Real Estate - Is a Slippery Slope Afoot?

In cases where a party owns a business, as justification for a disproportionate split of the business in equitable distribution, we often hear that the titled spouse has to be rewarded for their effort, ingenuity, ideas, etc. related to the business.  While arguably those things could be part of the analysis of the statutory factors, there really is not any law suggesting that this must be so.  In fact, the real justification that I can really get my arms around as to why a business would be disproportionately distributed is the fact that it is often pregnant with capital gains.  While the law is pretty clear that we cannot reduce the value because of hypothetical tax consequences, we can certainly look to same in the percentage distribution.  This makes sense because the failure to do so may actually give the non-titled spouse a greater percentage if taxes are ignored.

That said, I have heard this "sweat equity" argument over the years but have rarely seen a case where it was articulated.  That is until today when the Appellate Division released the unreported (non-precedential) opinion in Falkowski v. Falkowski.

In this case, the husband renovated two homes., purportedly without the assistance of the wife. The first was a premarital home which he renovated during the marriage.  The second, renovated after the parties' child was born and she left the workforce, was purportedly done on his days off (he worked full time as well.)  For the first house, the husband's "sweat equity" garnered him an additional 5% of the equity in the asset.  For the second home, the husband received 65% and the wife 35%.  In so ruling, the judge said:

[Husband] worked for five years to build that house into what it is, I gather, today. The testimony was pretty clear. Aside from the fact that [wife] had no say in it, and [husband] did all this with his friends, over five years he gutted everything to the frame. And he replaced everything. And he was fairly passionate when he testified about it too, all the work he did.

. . . . [I]t was a monumental amount of work. I was impressed with the fact that he
basically took the house down to its bare frame and bare rafters and built the entire
thing over. For those reasons I am not splitting this asset equally either. I
believe it's fairer to recognize that sweat equity and give him 65% of the net value and give [wife] 35% of the net value.

Noting that New Jersey is an equitable not an equal distribution state (i.e. a community property state), the Appellate Division upheld the ruling.  At the end of the day, the wife got $73,000 less than the husband. 

The question is can the analysis here be applied to other assets and other situations.  What if instead of working and spending all of his free time on renovating the property, the husband spent 90 hours a week to build a business while, as here, the wife was home with the child(ren)?  Is he rewarded for his sweat equity?  Should the wife get more alimony and child support in that case because she spent most of the time with the children?  Maybe - maybe not.

What if, the parties need a similar type of renovation to both their residence and shore home, but instead of the husband doing all of the work (with the assistance of his friends), he entrusts the job to the wife who serves as the general contractor, arranging for and dealing with all of the subcontractors, picking out and purchasing all of the appliances, floors, wall coverings, furniture, furnishings, etc. and dealing with the entire project without any assistance from the husband other than his income to pay?  At the same time, she is also primarily responsible for the children.  Does the same court award her a greater share of those homes?  I wonder. 

I have often said that though New Jersey is not a community property state, you often would not know it based upon how assets other than businesses are divided.  If "sweat equity" and other statutory factors are going to be applied, I am all for it.  Someone just better tell everyone in the system that that is what we are doing.  Too often, people default to equal distribution and "rules of thumb" for support ignoring statutory factors and equitable principles.  When someone argues against the norm, they may be accused of being litigious or unreasonable.  Why is this so?  I posit that it should not be.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

IRS PROVIDES GREATER PROTECTION TO "INNOCENT SPOUSES"

New changes implemented by the IRS to the "Innocent Spouse" rule provide greater protection for those spouses seeking relief under the broadly described "inequity" provision of the rule.  Generally, speaking, most spouses file joint tax returns and do not consider a subsequent tax liability that may befall upon them.  In the face of such a scenario, the innocent spouse rule can provide relief from liability for a partner's tax debt under certain conditions.  For a greater sense of the rule and its specifics,review this prior entry on our blog and the linked alert previously issued by our Family Law Department on the topic.

New protections afforded by the legislative changes relieve claimants of the strict confines of a 2 year limitation on filing claims when the spouse claims that it would simply be inequitable to hold him or her responsible, which, in actuality, covers a broad spectrum of claims not encompassed by the other more narrow provisions leading to innocent spouse status.  Previously under a claim of inequity, if the spouse did not file for relief within 2 years of receiving an IRS collection notice of the subject debt, that spouse was not entitled to relief.  Oftentimes, an otherwise qualified spouse would be denied relief even if they did not know of the notice until after 2 years had passed (including cases where one spouse hid the notice from the other) or, even more specifically in the case of an abused spouse, knew of the notice but was too afraid to notify the IRS from fear of spousal retribution.

Significantly, this rule will seemingly apply both prospectively and retroactively, and the IRS may even suspend collection efforts on pending debts.  Even better, if you were previously denied a claim for innocent spouse status under an inequity claim due to the 2 year rule, the IRS said that you can reapply for the very same relief in most cases.  Suffice it to say, the relief for eligible "innocent spouses" can be life altering.

A Case Made For Alimony Guidelines - Not in NJ but do we want them?

On July 3, 2011, there was on op-ed in the New York Times by Alexandra Harwin entitled Ending the Alimony Guessing Game.

In the piece, she posits that

The unpredictability of alimony rules imposes several costs. Negotiating a settlement deal is much harder when spouses have no idea what they’ll end up with if they take their chances in court. Litigation drags on and the bills pile up when lawyers and experts have to prove their clients deserve any alimony at all. All the while, the emotional costs mount as people awaiting divorce continue in unhappy marriages; some stay married indefinitely because they don’t know if divorce will leave them with enough money to make it on their own. That’s particularly troubling in cases of domestic violence: some wives endure years of abuse because they can’t be sure husbands who control the family finances will be required to give them the money they need to live if they leave. New York’s law minimizes these costs by establishing a mathematical formula to calculate temporary alimony, which one spouse pays the other while the divorce is pending; it also allows judges to adjust those awards up or down under special circumstances.

She also believes that guidelines would make the judges jobs easier and the divorce process fairer.

At first blush, this makes sense - but does it really?  Since all alimony guidelines are income based (and as she points out, they are only for temporary support), they ignore parties' individual circumstances that are not income related.  In a way, guidelines presume that all peoples expenses are the same, that all people with similar income pay the same amount of taxes, that there are no special circumstances, that some families may be savers while others spend every penny earned (and then some), etc.

In NJ, to the extent possible, the goal of temporary support is to maintain the status quo. Sometimes it seems like or certainly could feel to the support payer to being unfair, especially where the other spouse is not working and the payor is paying for most direct expenses plus some amount for personal expenses on top of that.  The risk with guidelines, however, is that certain bills could never get paid if the personal responsible is not given enough money to pay and the other party is not required to make direct payments. 

On the other hand, does New Jersey have de facto guidelines anyway?  More and more, you hear about the "rule of thumb" - i.e. a mathematical formula where the lower income (or what that person could earn if not employed or working to their capacity) is subtracted from the payor's income and alimony is fixed at one-third of the difference.  You see lawyers use this all of the time.  You see judges do this, even when they know that they cant, in trying to settle cases or even in decisions after a trial.  They don't say that they are doing it but you can do the math and see that they are. The rule of thumb may be helpful to get a starting point for review, but if it is the absolute end point, ignoring all other factors, that could be a problem.

 

In New Jersey, we have an alimony statute that has 13 factors that a court must consider and make fact findings about  when deciding alimony.  The statutes is as follows:

In all actions brought for divorce, divorce from bed and board,or nullity the court may award one or more of the following types of alimony: permanent alimony; rehabilitative alimony; limited duration alimony or reimbursement alimony to either party. In so doing the court shall consider, but not be limited to, the following factors:

(1) the actual need and ability of the parties to pay;
(2) the duration of the marriage;
(3) the age, physical and emotional health of the parties;
(4) the standard of living established in the marriage and the likelihood that each party can maintain a reasonably comparable standard of living;

(5) the earning capacities, educational levels, vocational skills, and employability of the parties;
(6) the length of absence from the job market of the party seeking maintenance;
(7) the parental responsibilities for the children;
(8) the time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment, the availability of the training and employment, and the opportunity for future acquisitions of capital assets and income;
(9) the history of the financial or non-financial contributions to the marriage by each party including contributions to the care and education of the children and interruption of personal careers or educational opportunities;
(10) the equitable distribution of property ordered and any payouts on equitable distribution, directly or indirectly, out of current income, to the extent this consideration is reasonable, just and fair;
(11) the income available to either party through investment of any assets held by that party;
(12) the tax treatment and consequences to both parties of any alimony award, including the designation of all or a portion of the payment as a non-taxable payment; and
(13) any other factors which the court may deem relevant.
 

The statute theoretically takes into account the kinds of differences I noted earlier as well as a fact that new two families circumstances are the same.  While guidelines may be helpful to so that there are not huge disparities from judge to judge, they could also do significant damages by creating a windfall or significantly hurting a recipient based upon the particular facts of their case.  Moreover, suggesting that guidelines are necessary seemingly suggests that judges are not capable of analyzing the facts and the law - i.e. the thing that they get paid for.  That supposition would essentially spell doom for the whole legal system. 

So, while I can see some merit to alimony guidelines, I think that our statute, properly applied, provides the most fairness to people going through process since no two families are alike.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Three Matrimonial Appeals Decided Today - Three Reversals

The New Jersey Judiciary website provides each days published and unpublished Appellate Division decisions.  If you read this blog with any frequency, you know that we often write about the decisions that are released.  Today there were three decisions from post-judgment divorce cases.  We will likely blog in more detail about some or all of them in the future.  What is interesting is that despite the fact that historically, appeals succeed only approximately 20% of the time, there were reversals in all three cases. 

In one, alimony was modified and permanent alimony was awarded without the court holding a plenary hearing (i.e. trial) on the contested issues. 

In another, the trial judge modified child support, multiplying the old child support amount  by the percentage increase in the plaintiff's income.  The Appellate Division held that a simple mathematical calculation does not comply with the mandates of the statute and case law.  They further held that while the percentage increase is an important factor in determining the support obligation, it is not exclusive and does not relieve the trial judge of performing the required analysis
prescribed by the statute and case law.

In the third, there were conflicting certifications regarding a husband's application to reduce support and the wife's cross application for enforcement.  Not only was there no plenary hearing ordered despite conflicting certifications, there was not even oral argument on the motion allowed despite both parties requests for same.

What is the common theme in all of these cases.  The Appellate Division found that the trial court decided cases without doing all of the things that were necessary to decide the cases, most importantly, holding a hearing where there are contested facts. Trial judges are already over burdened so one can understand why they may want to cut to the chase.  While understandable, it is obviously not acceptable to the Appellate Division or the justice system in general.

Is the problem going to get worse.  There is already a shortage of judges.  In some cases, you are being told that you cannot get a trial date for years notwithstanding the "best practices" goal to resolve all cases in a year.  With the shortage of judges already and pending changes to the pension system which may cause sitting judges to retire and prevent good potential judges from wanting to become judges, one can see the problem getting worse and not better. While alternate dispute resolution like mediation and arbitration is an option to get more speedy justice and we use it all of the time, litigants are still entitled to have a free (relatively) and efficient justice system to resolve their disputes.  If dockets are over burdened already, will this become worse?

4 Way Conferences - They Are Not Only for Final Settlement

I have to admit it.  I have not always been a fan of the 4-way conference.  Often, they have been the bastion of bad behavior, posturing and often just not as productive as mediation with attorneys present or negotiations back and forth, in writing, between counsel.  That said, I am beginning to come around to seeing the usefulness of earlier meetings and earlier mediations, where appropriate, to try to resolve as much as possible, as early as possible.  In fact, I was recently reminded of the importance of the willingness to meet when an opposing counsel was fired, seemingly because that attorney refused to meet or even pick up a phone to discuss issues.

The meetings do not have to be simply for settlement.  More often than not, couples continue to reside in the same household while the divorce case is pending.  Often in these cases, at best, people are on edge and at worst, it is the War of the Roses.  In these situations, an early meeting can be helpful to address conduct and civility within the home and perhaps interim exclusive parenting time between each party and the child(ren).  The alternative could be a domestic violence situation (real or bogus) which could possibly have been avoided.  Temporary support issues can be discussed.  The use, sale and/or restraints on assets can be addressed.  A source of funds for payment of counsel or expert fees can be discussed.  There really is no limit to what can be addressed.

Since custody and parenting time are issues that the courts want to have resolved sooner than later, because custody evaluations take a long time and are expensive, an early meeting can root out whether there are bona fide issues, or whether a settlement on these issues can be reached. 

Other times, these meetings are a good opportunity to allow one or both party with something "on their chest" to have the cathartic experience of getting something off their chest.  In some cases, this allows the issues in the case to be addressed now that this is behind the parties.

In other cases, the entire case can be settled or at least a framework for settlement can be reached, subject to the exchange of certain documents so that each side can be comfortable that they know everything that there is to know.  Even if you cannot settle, you get to learn about the other side's positions, issues, perhaps evidence, etc. 

While we are used to and adept at litigation and while some cases require some (if not a lot of litigation), this is not the case in every divorce.  Even in high conflict matters, meetings and opening a real dialog can help to keep the lid on things so that the attention can be turned to the real issues.  Figuring when to meet is the trick.  Refusing to meet, at all, is usually a mistake.  Usually something good can come of it.

Read Mark Ashton's Post Entitled "The Tangled World of International Custody; The Hague Convention"

Mark Ashton, a partner in our Exton (Chester County) office, and former editor of our Pennsylvania Family Law Blog, wrote on interesting post entitled "The Tangled World of International Custody; The Hague Convention" that was recently published on that blog.

Mark's post discusses that the May 13 edition of the Wall Street Journal featured an article concerning the internationalization of the home buying market. Mark notes that as our global economy shrinks, people are buying homes in far off places as a matter of convenience and investment. Mark posits that easy access to international residences, however, can have unintended consequences as a May 13th interview with Mr. David Goldman demonstrates.

We have blogged in the past about Hague issues and the tragic story of the Goldman custody fight involving the abduction of his son, by David's former wife, to Brazil, and the efforts ta ht she and her family took to prevent the return of the child.

As reported in the New Jersey Law Journal, two weeks ago, a New Jersey law firm was found liable to the ex-husband of a former client for giving her the child's passport which was supposed to be held by her attorneys per a court order - allowing her to abscond with the child to Spain.  The jury awarded the father $950,000 with potentially more in legal fees to come.

In cases where there could be ties to other countries, some discussion should be had to determine whether safeguards need to be put into place. Safeguards are not required in every case, but where a client has some concern, discussions about passports and international travel may be warranted. 

In any event, as usual, Mark's post provides some interesting food for thought.

Read Leslie Spoltore's Post on Delware's New Civil Union Bill

Leslie Spoltore, a partner in our Wilmington, Delaware office, wrote a post on the Delaware Trial Practice Blog entitled "Civil Union Bill Provides For Divorce/Annulment In the Delaware Family Court."

The bill, which becomes effective on January 1, 2012, the right of a same-sex couple to both form a union, as well as the couple’s right to terminate their union. The bill confers upon the Delaware Family Court the right to hear actions to dissolve civil unions brought by residents of the State of Delaware. In addition, the legislation permits Family Court to hear actions for divorce and annulment of civil unions filed by non-residents if the union was solemnized in Delaware and if the jurisdiction in which a party to the union lives does not permit such an action for divorce or annulment.  Put another way, even if the couple no longer lives in Delaware, if the state in which they live will not allow for a divorce or other legal termination of the relationship, if the relationship was formalized in Delaware, the parties can return there for a dissolution.

Domestic Violence: Bad Haircuts and an Unwanted Hug Can Constitute Harassment

This post was written by Melissa M. Ruvolo, a new Family Law associate, in our Roseland office, and soon to be an official contributior to this blog.

Our blog frequently features discussions regarding what constitutes domestic violence to warrant the issuance of a Final Restraining Order (FRO). Perhaps the most frequently alleged “predicate act of domestic violence” is harassment under N.J.S.A. 2C:33-4. What may constitute “harassment” was recently raised in the unpublished Appellate Division decision of A.B. v. L.S.M. decided on May 6, 2011.

The parties were unmarried but had been living together for almost four years. They had two daughters – a 3-year old and a 22-month old. During an argument, the defendant called the plaintiff a “b-tch” and the plaintiff admitted she may also have cursed and yelled at him. The defendant attempted to leave the home but while doing so, got a flat tire. When he tried to fix it with a car jack, the plaintiff twice tried to remove the jack from under the car and the defendant pushed her shoulders each time. She threw the daughter’s sippy cup at his face and broke his nose. Both parties applied for temporary restraining orders, which were dismissed. The defendant eventually moved out of the home and parenting time was ordered by the Court.

Two months later, the defendant went to the plaintiff’s home and knocked on her bathroom window, pleading to speak with her. The plaintiff refused. On the way home from plaintiff’s house, the defendant sent her an apologetic text message stating that he had no idea how much he had hurt her and would leave her alone.

Several days later, when the defendant went to the plaintiff’s home to pick up the children for parenting time, he asked to speak with her. He told her he “really missed her” and wanted to “hug and kiss her.” She responded that she didn’t want to talk to him or “have him touch her.” Later that evening, the defendant sent a text message to the plaintiff claiming the children forgot a teddy bear and blanket. She offered to bring them to his home and he agreed. When the plaintiff arrived at the defendant’s front door, he told her the children were already asleep, leading her to believe that the entire incident was a ploy to get her there. According to the plaintiff, the defendant grabbed her to prevent her from leaving and she told him not to touch her. The plaintiff’s friend, who was waiting in the car, witnessed the defendant give the plaintiff an unwanted “bear hug.”

On another occasion, the plaintiff went to pick up the children from the defendant’s home only to find that he cut the 3-year-old’s hair from halfway down her back to her shoulders and gave her bangs. He also cut the 22-month old’s hair “straight across the front and when it was wet it wasn’t straight.” The plaintiff was angry and thought this was done to harass her. The defendant claimed it was part of a “beauty makeover” and one of the daughters asked for a haircut.

Several days before obtaining the temporary restraining order, the plaintiff claimed that the defendant again cut an inch from only one side of the 3-year old’s hair. The defendant denied this. The plaintiff also stated that when she was leaving with the daughter, the defendant told the daughter he didn’t know when he would see her again because “mommy was being mean . . . and keeping her away from him.” He said this even though he had regular court-ordered parenting time with the children on a weekly basis.

The Appellate Division panel upheld the trial court’s decision that the defendant’s actions towards the plaintiff constituted harassment under N.J.S.A. 2C:33-4(c) because he engaged in a “course of alarming conduct or of repeatedly committed with purpose alarm or seriously annoy the [plaintiff].” The panel noted that the plaintiff repeatedly told the defendant she wanted to be left alone. Even so, the defendant called her a “mean mommy” in front of the children and gave the daughters “haircuts that, at best were amateurish, and at worst, ‘ruined’ their hair knowing that plaintiff would be upset.”

The defendant’s behavior, particularly in the presence of the children, was certainly inappropriate. However, did it truly warrant a FRO? A FRO carries serious consequences. The abuser cannot own a firearm and will be listed in the domestic violence registry, which is available to law enforcement agencies and Family Court domestic violence personnel. The violation of a FRO constitutes a criminal offense, which results in mandatory arrest and in some cases, jail time. In certain circumstances, one with an FRO can lose his/her job, especially those jobs that require the carrying of firearms or other weapons. One’s application for future employment or license certification could even be tarnished when the applicants responds “yes” to the question “have you ever been arrested?”

Perhaps the more appropriate result would have been to reconsider the defendant’s parenting time given his inappropriate actions in front of the children. On the other hand, maybe the court got it right and prevented the situation from escalating beyond control. Either way, this case teaches us that the broken-hearted must be conscious of the consequences of their untamed emotions.

Trial Judge Says You Didn't Commit Domestic Violence But Get Out - Appellate Division Says Not So Fast

The usual result after a domestic violence trial where the parties had been living together at the time of the entry of the Temporary Restraining Order (TRO) is that a Final Restraining Order (FRO) will be entered and the defendant kept out of the home, or the TRO will be dismissed and the defendant would be free to move in.  What usually does not happen, and in the majority of cases cannot happen, is that the trial judge dismissed the TRO but Orders the defendant out of the home anyway.  However, that is exactly what the trial judge did in the case of C.R. v. A.R., an unreported (non-precedential) Appellate Division opinion released on May 5, 2011. The Appellate Division disagreed that this was proper in this case and reversed.

After the trial, the trial judge dismissed the domestic violence complaint, finding that the evidence did not
demonstrate the occurrence of any acts of domestic violence. However immediately upon explaining why the complaint should be dismissed, the trial judge stated the following:

Now, I am somewhat troubled by what [Abby] indicated on the stand. And I think she, in a way, was conveying a message for all the children, and whether she felt, since she's the oldest and the adult, that she should be the spokesperson for all the girls. But it's clear that they don't want the parents living together.

And I —— I tend to agree with them. I don't think it would be in the parents' best interest to be living in the house together, in light of what's been going on.  So, since I do have the matrimonial act case in front of me, I am going to enter civil restraints. And the bottom line is I am going to prohibit [Alan] from resuming to reside in the house. And that's on a temporary basis and without prejudice, but I think it would be in the best interests of the girls if that happened right now, especially in light of the fact that [Abby's] going to be leaving shortly, will be out of the country, and I —— assume that she has somewhat been the —— the leader or the caretaker for the girls while this has been going on for the last two months. So, [Alan], I am not going to allow you back in the house to live.

 

Interestingly, the Appellate Division did not say that such an order was automatically impermissible.  To the contrary, they held that the trial court has the inherent authority of, in an appropriate fashion and under proper circumstances, to order the exclusion of a spouse from the marital home, whether or not there has been domestic violence.  This is sometimes called "Roberts restraints" named after a case called Roberts v. Roberts (as well as a few others) that predated the domestic violence act.  What makes this interesting is that many have argued that Roberts restraints no longer exist after the enactment of the domestic violence act.  The Appellate Division seemingly puts an end to this debate with this case (though parenthetically, I recently successfully argued that Roberts restraints should be used to keep a parent out of the marital home based upon certain conduct that was detrimental to the children.)

However, the Appellate Division deemed them inappropriate in this case for the reasons that follow:

In this case, we are convinced that the Family Part overreached in granting an out-of-home restraint under the posture of the proceedings. Furthermore we are troubled by the
abruptness with which the issue arose, and the inability of Alan to fairly respond to the sua sponte restraints imposed by the court in the context of Cari's unsuccessful PDVA complaint. The first mention of barring Alan from the marital home came after the Family Part exonerated him of committing any acts of domestic violence. The court did not deem Alan's conduct to even be merely evidential of a domestic contretemps, but rather
held that no predicate acts under the PDVA were committed.   ...

Then, without alerting the parties to the court's thoughts, the Family Part embarked upon a brief discussion of the children's best interests. There was nothing in the FV action
that materially touched upon those best interests, and although the court certainly maintained the raw authority to oversee the condition of the children, the manner of addressing those interests trampled Alan's rights. Neither Alan nor Cari had an opportunity to present detailed and relevant evidence about the children living at home
and the effect of both parents' presence vis-à-vis their wellbeing.

In the absence of an emergency, the Family Part should not have acted without either giving the parties fair notice of its intentions, or waiting for a proper application to be made
by one or both of the parties pursuant to Roberts ...

In this case, the only evidence concerning the best interests of the children came from the testimony of the upset teenage daughter of the parties.   The Appellate Division held that that was an insufficient foundation upon which to construct the out-of-home restraint imposed by the court. The Court noted that it neither afforded the parties a fair opportunity to develop best interests evidence nor permitted them to adequately examine and cross-examine their daughter on those provocative issues.

What this tells us is that Roberts is alive and a defendant should be prepared for the possibility of a Roberts application if the children's best interests could be harmed by the parties remaining in the same home pending a divorce.

APPELLATE DIVISION ANALYZES THEFT AS AN ACT OF DOMESTIC VIOLENCE

To obtain a Final Restraining Order, a claimant must, among other things, establish that one of the predicate act of domestic violence actually occurred under N.J.S.A. 2C:25-19.  Notably for the purpose of this blog entry, theft is not one of those predicate acts.  The question then begs - can theft be a form of domestic violence as a component of a claim that one of the actual listed predicate acts occurred?  As recently addressed by the Appellate Division in E.M.B. v. R.F.B., a new published (precedential) decision, the answer could be "yes."

In E.M.B., an elderly mother filed a domestic violence complaint against her 56-year old son, with whom she resided.  Mom claimed that Son had engaged in an act of domestic violence by stealing her car keys, cell phone, bank book, money and some jewelry from her bedroom.  Based on these factual details, and Mom's testimony, which the trial court found credible, a Final Restraining Order was issued based on a finding that Son harassed mom. 

In reversing the trial court, the Appellate Division broke its decision down into two parts.  First, it concluded that theft in itself is not a predicate act under the Prevention of Domestic Violence Act and, as a result, a Final Restraining Order could not be issued on a claim of theft alone.  The Appellate Division then went into a more detailed analysis as to whether the acts of theft could be classified as an act of harassment.

As to one comment made by Son that Mom was a "senile old bitch," the Appellate Division found that, upon a review of the context and surrounding circumstances, while the phrase was upsetting to Mom, there was no purpose to harass behind the statement and no violation under either subsections (a) or (c) of the harassment statute.  The Appellate Division made a brief, yet interesting commentary on the constitutional implications of restricting speech in the context of the harassment statute, noting that because the First Amendment "permits regulation of conduct, not mere expression[,]" the speech must have a "specific intention [of] harassing the listener."  Mere expressions of opinion uttered through the use of offensive language is not enough to establish harassment.

As to the acts of theft, even if they could be considered a course of conduct, the Appellate Division concluded that there was a lack of proof that Son was motivated by a purpose "to alarm or seriously annoy" as required by subsection (c).  To that end, the Appellate Division found no evidence that the theft was anything more than the son taking Mom's property for his own use.  As to the prior history of domestic violence aiding the court in finding the occurrence of a predicate act of harassment, the Court concluded that prior incidents of theft could not be relied upon without proof that the thefts occurred with a purpose to harass Mom.  As a result, the Final Restraining Order was reversed.

While we have blogged about the somewhat difficult requirement of proving a "purpose to harass" in the past, E.M.B. is interesting in its constitutional analysis and review of the harassment statute in the context of theft.

Read Aaron Weems' Post Entitled "Ladies Get Divorced and Live Great; Guys Get Divorce and Die Early"

My father used to tell a bad joke that went "Q. Why do men die before their wives?  A. Because they want to."  Bad joke aside, while there are many studies that show that men are typically financially better off then women after a divorce, are they happier?  There is now a study that suggests that maybe they are not.

In fact, Aaron Weems, an associate in our Bucks County office and editor of our Pennsylvania Family Law Blog recently posted an interesting piece on that blog on the The Longevity Project, entitled "Ladies: Get Divorced and Live Great; Guys, Get Divorced and Die Early."

Aaron noted that  the authors concluded that after going through a divorce women tend to thrive and live long, active lives, while men, quite simply, do not. They die early. Aaron further noted that the impact on divorce was surprising: men who divorced, stayed divorced, or remarried and divorced again saw their mortality rates rise far above their long-married peers. Women, on the other hand, seemed to thrive after they divorced (single women and widows did similarly well). The authors reasoning was that women often left bad marriages and, for possibly the first time in their adult lives, found themselves in charge of their own life and were invigorated by the opportunity to live independently.

In any event, both Aaron's blog and the study itself are interesting reads and food for thought.  I will leave the joke telling to my father, however.

If You Think that Your Job Related Life Insurance Is Enough, Think Again

It is typical for divorce agreements to contain a provision requiring an alimony payor to maintain life insurance to secure his alimony obligation and one, if not both parents to maintain life insurance to secure their obligations to their children.  In fact, Jennifer Millner, a contributor this this blog, and a partner in our Princeton office, recently did a post entitled Child Support Obligations Live on After Death, addressing what happens when a support obligor does not have the required life insurance at his death.

It is also typical for someone to cover their life insurance obligations through insurance they get as a benefit of their employment.  Many companies, for example, offer as a benefit, life insurance - one times their salary, three times their salary - for example.  What happens when someone leaves their job and loses this life insurance?

That issue was addressed by the Appellate Division in an unreported (non-precedential) opinion released on April 1, 2011 in a case entitled Starr v. Starr.  In this case, to secure his alimony, in the divorce agreement, it provided that, "Defendant shall designate plaintiff as a beneficiary of $150,000.00 of the proceeds of the group life insurance made available to him through his employment."  However, in 2005, he was given notice that his employment was terminating.  He did have the option of converting his group life insurance to an individual policy but he did not. 

Upon learning that the husband had not converted his policy, the wife filed a motion to compel the husband to obtain the required life insurance.  The husband opposed it claiming that the life insurance set forth in the Agreement was no longer available to him and the plain language of the agreement  "...did not require him to obtain an "individual or non-employment group life insurance policy" for the benefit of plaintiff." 

Both the trial court and Appellate Division disagreed with the husband's position holding that the
clear purpose of the life insurance provision in the JOD was to secure defendant's alimony payments. The court also found that defendant had a continuing obligation to secure his alimony obligation.

The Appellate Division also cited the statute creating the justification for the security.  The Court also noted that the purpose of life insurance is to assure a sufficient fund for the payor's support obligation should he die before fulfilling that responsibility. Further, the function of alimony can be maintained after the obligor's death by substituting insurance proceeds.

The lesson to take from this case is that if work related life insurance , which may be provided at little to no cost to the employee, is going to be the insurance used in the Agreement, the parties should specify what should happen if this insurance is no longer available.  In this case, the husband had the ability to convert the policy but that is not always the case.  Moreover, if the policy is converted from a group policy to an individual policy, the cost to the employee can go up dramatically.  Thus, if it is the parties' intention that the work related policy be maintained only so long as it is available through employment at little or no cost, they should say so in their agreement. 

Another issue that comes up from time to time is that someone has a term policy that either expires or the cost increases greatly such the the new premium or a new policy would be cost prohibitive.  Now, if a person does not have a support obligation to secure, this may be no big deal and they can choose not to have insurance anymore.  However, the problem arises if they have to secure alimony or child support.

In a situation where someone has a term policy that expires or has an increasing premium at a certain age, at the time of the divorce they may be better served to go out and get a new policy that covers their needs into the future, before the premiums become cost prohibitive (or even worse, before they can no longer get insurance).  Similarly, one must give serious consideration as to whether they want to use work related insurance to cover their obligation so that they are not in the same boat as Mr. Starr was in this case. 

WHAT IS AN ANTI-LEPIS CLAUSE AND CAN IT BE MODIFIED?

When parties resolve their divorce via a settlement agreement, can they agree that neither party will seek to modify the agreed upon terms of alimony and child support?  In New Jersey, a court may generally modify a support obligation at any point in time to achieve equity inherent in this State's alimony law.  For instance, as detailed countless times on this blog, a party must establish that they have experienced a substantial and continuing change in circumstances under the seminal case of Lepis v. Lepis, 83 N.J. 139 (1980), in order to merit some form of support modification. 

An "anti"-Lepis clause, however, attempts to limit the court's ability to modify via a waiver by the parties to seek such modification.  To be enforceable, the clause must fulfill several conditions.  First, the parties must include such language in the settlement agreement "with full knowledge of all present and reasonably foreseeable future circumstances," and second, "must bargain for a fixed payment or establish the criteria for payment to the dependent spouse, irrespective of circumstances that in the usual case would give rise to Lepis modifications of their agreement."

However, consistent with my assertion above that such clauses are enforceable - until they are not enforceable - the overriding legal principle in New Jersey is that "If circumstances have made the parties' standards unreasonable, they can in extreme cases be modified.  In less extreme cases . . . the payments can be accrued with enforcement conditioned upon the payment of reasonable periodic payments."

The Appellate Division recently affirmed a trial court's finding regarding the enforceability of anti-Lepis language in King v. King, where the husband sought to have the language deemed unconscionable in an effort to modify support following his loss of employment.  Since the language was found to have fulfilled the above-conditions and was not an "extreme" case warranting a support reduction, the trial court did not alter the support amount, but rather allowed for the accrual of unpaid portions of support conditioned on partial periodic payments.  The Appellate Division found this approach to be an appropriate alternative, thereby providing some form of relief to the payor without modifying the actual monetary obligation. 

To that end, the Appellate Division agreed that the settlement agreement was not so unfair and inequitable to set it aside, especially since loss of employment was expressly mentioned in the anti-Lepis language.  It was not found to be an "extreme" situation because the payor failed to provide sufficient evidence as to how he lost his employment and his search for a new position to mitigate the resulting problem. 

I found a few notable points made by the Appellate Division towards the end of its decision.  First, it noted that, while the payor's decision to agree to such language "may have been a bad decision in retrospect, we do not believe that amounts to unconscionability."  This language only reinforces the risk and inherent danger to the payor spouse of an anti-Lepis clause.  A court may not order the imposition of such language upon parties, since it is contrary to the alimony statute and Lepis itself, but it can enforce a parties agreement to such language.  If a payor spouse is going to agree to such language, he or she should seek to obtain substantial consideration in return considering the major concession being made.  

Next, the court noted that it can "take judicial notice of the recent severe economic downturn," but that "there have been signs of an economic recovery."  One published Appellate Division decision since the start of the downturn conveyed that judicial notice could be taken of the downturn itself, but I have experienced on several occasions courts declining to do so, limiting that published decision to its facts.  Further, many motions for a support modification still seek to rely on the economic downturn as a primary basis for a reduction.  With the Appellate Division noting here that a recovery is in progress, is the end approaching for the economy-based Lepis applications about which so much has been written since 2008?  At the very least, perhaps a more industry-specific approach will be even more necessary than before to highlight any ongoing downturn.

Finally, in an interesting footnote, the Appellate Division asserted the legal principle that the term of limited duration alimony may not be modified except in "unusual" circumstances.  It added, however, that a trial court may need to consider on a future motion whether an "extreme case" meriting an actual support modification despite anti-Lepis language would also constitute "unusual circumstances" meriting an alimony term extension at the lower rate.  While the Appellate Division's assertion inherently makes sense, a merging of the two concepts seems to unfairly overcome the hurdle of establishing "unusual circumstances" as to the length of alimony.  

Nevertheless, entering into an anti-Lepis provision can have potentially harmful ramifications on the payor spouse and, as a result, should only be considered in limited situations and in exchange for substantial consideration.

Preparing for the Divorce Process

Previously, Sandra Fava, a contributor to this blog, did a piece on preparing for the initial divorce consultation with a lawyer.  The process, however, starts even before that.  On our web site, we have an advice piece entitled Preparing for the Divorce Process

Since it is linked to this post, I will not repeat everything contained in the piece.  However, the topics contained in that piece are as follows:

  1. Speak to an attorney now, not later
  2. Selecting the right attorney (including how to get referrals for an attorney)
  3. Gathering documentation
  4. Preparing for the initial meeting
  5. Telling the truth
  6. Keeping a diary; and
  7. Trusting your attorney for legal advice (as opposed to friends, family members, co-workers, etc.)

Do I stay or do I go? This is not an easy question to answer. However, if you are even
contemplating a divorce, divorce planning (and not in the nefarious way that often goes with this phrase) is essential, especially in difficult economic times.  Divorce can be a long, highly charged, expensive process - emotionally and economically. Being prepared and keeping
perspective, at least as much as humanly possible, can help you save time and legal fees
while protecting your and your children's interests.

GRANDPARENTS FACE A STEEP BURDEN IN SEEKING VISITATION

Oftentimes in typical family life, circumstances unfold between grandparents and their children that result in a "cutting of ties," so to speak, where contact ceases not only with the children, but with grandchildren as well.  By that time, grandparents have commonly formed loving ties and bonds with the grandchildren that are at a risk of breaking due to the conflict with the parents.  What are a grandparents' rights to have visitation with the grandchildren in such a situation?  The answer can be found in New Jersey's Grandparent Visitation Statute, N.J.S.A. 9:2-7.1, which imposes a difficult burden upon the grandparents to establish a right to visitation because the grandparent is essentially seeking to intrude upon the overwhelming strength of a parent's fundamental, constitutional right to raise their children.   

The statute sets forth as follows:

a.  A grandparent or any sibling of a child residing in this State may make application before the Superior Court, in accordance with the Rules of Court, for an order for visitation.  It shall be the burden of the applicant to prove by a preponderance of the evidence that the granting of visitation is in the best interests of the child.

b.  In making a determination on an application filed pursuant to this section, the court shall consider the following factors:

(1) the relationship between the child and the applicant;

(2) the relationship between each of the child's parents or the person with whom the child is residing and the applicant;

(3) the time which has elapsed since the child last had contact with the applicant;

(4) the effect that such visitation will have on the relationship between the child and the child's parents or the person with whom the child is residing;

(5) if the parents are divorced or separated, the time sharing arrangement which exists between the parents with regard to the child;

(6) the good faith of the applicant in filing the application;

(7) any history of physical, emotional or sexual abuse or neglect by the applicant; and

(8) any other factor relevant to the best interests of the child.

 c.  With regard to any application made pursuant to this section, it shall be prima facie evidence that visitation is in the child's best interest if the applicant had, in the past, been a full-time caretaker for the child.

In addition, because of the fundamental parenting rights I described above, the grandparents must also establish by a "preponderance of the evidence" that the "visitation is necessary is avoid harm to the child."  To do so, case law in New Jersey requires that the grandparents establish a "special need for continued contact" beyond the "ordinary grandparent-child relationship and its unwanted termination."  Allegations must be specific as to the harm that would befall upon the grandchildren, based upon the "unusually close" relationship between the grandparents and the children or on "traumatic circumstances such as a parent's death."  The mere potential loss of memories or the grandparents' love and care does not meet the grandparents' required burden.

It was upon an examination of the above that the Appellate Division in Levine v. Levine et al., affirmed the trial court's dismissal of a grandparent's application for visitation under the statute.  In so doing, the Appellate Division found that the grandparent failed to establish that his relationship with the grandchildren was anything more than "an ordinary healthy and loving grandparent-grandchild relationship." 

The Appellate Division also rejected the grandparent's request to have the grandchildren evaluated by a psychological expert, finding it unnecessary to expose the children to such a process when the situation posed a standard relationship, without any specific allegation of unusual harm or a special relationship.  The grandparent's submission of his own expert report, which was based solely on the grandparent's own statements (since the expert had not actually met with the parents or the children) failed to sway either the trial court or Appellate Division in his favor. 

This case confirms that, while New Jersey's Grandparent Visitation law does, in fact, provide certain rights and protections for grandparents that did not previously exist in this State, the fundamental rights of parents to raise their children carries far greater weight in the overall analysis.

I THINK MY EX IS COHABITATING- NOW WHAT?

If you have been through the process of divorce and have a spousal support obligation to your ex, you should have been advised that aside from explicitly stating an end date for your spousal support obligation, there are few ways to end the payments.  Death is certainly one of them.  If your ex remarries that is a second.  What happens when your ex is living with someone else?

The issue of cohabitation has been dealt with by the courts in NJ in case law since the 1970's.  The issue in and of itself is not new.  How the courts have dealt with allowing parties to prove the issue has been somewhat fuzzy, until a recent unpublished Appellate Division decision provided what seems like some much needed, long time coming, guidance.  If you haven't already, take a look at Wonderlin v. Wonderlin .

So what's the guidance- well let's start with the basic principles cases like Konzelman v. Konzelman, 158 NJ 185 (1999) and Gayet v. Gayet, 92 NJ 149 (1983) have given us.  In Gayet, the court told us we need to look at whether the cohabitating couple bears the "generic character of a family unit as a relatively permanent household".  In Konzelman, the court told us that the relationship in question needed to show signs of "stability, permanency and mutual interdependence".  The proof required is that "of an intimate relationship in which the couple has undertaken duties and privileges that are commonly associated with marriage" which include but are not limited to "living together, intertwined finances such as joint bank accounts, sharing living expenses and household chores, and recognition of the relationship in the couple's social and family circle".  The problem for litigant's and practitioners alike has been, how do you prove such intimate details at first blush so as to convince a court that you have met your burden of proof and now the alleged cohabitating ex must produce evidence to show there is no economic benefit of the relationship and the spousal support is still needed?

As a practitioner I have been on both sides of the case where there is an allegation that an ex who is receiving spousal support is cohabitating.  The usual tactics have been employed, including but not limited to, private investigators, photos of the couple together at social functions, coming in and out of their residence on a daily basis, perhaps a morning routine of dog walking, etc.  Sometimes, these tactics are successful and there is enough for a judge to raise an eyebrow and want to delve deeper into the matter.  Other times, there is not - motion denied, no relief granted, case closed (for now).

Wonderlin has seemingly changed that.  In this case, the facts were that the paying spouse claimed his ex was cohabitating with another man and he provided certifications and information gathered by a private investigator suggesting this intimate relationship not only with his ex but with the children of the marriage.  The evidence was consistent with the claim of cohabitation but wasn't enough for the trial court.  On appeal, the Appellate Court reversed and set forth the following principle:

"It is the unlikely case in which a former spouse will have access to bank accounts or insight into whether the alleged cohabitors are sharing expenses and household chores.  All that was available to an outsider here....is alone insufficient to warrant a finding of cohabitation....But so long as this type of evidence suggests cohabitation, the former spouse should be entitled to discovery into those other areas that are critical to a finding of cohabitation.  Without discovery, a former spouse is ordinarily incapable of showing the intertwining of offenses or evidence of how the couple is viewed socially".

The court went on to say that this doesn't necessarily require an evidentiary hearing.  The parties can argue that whatever discovery does or doesn't disclose warrants a disposition of the cohabitation issue as a matter of law as set forth under the principles in Konzelman and Gayet.  The need for an evidentiary hearing can't be determined until discovery is concluded.

The clear guidance provided in Wonderlin enables practitioners and litigant's alike to know their responsibilities under the law to get to the next step of the cohabitation puzzle.  It solves a common problem litigant's and practitioners have been facing where oftentimes its an impossibility to obtain the information necessary to meet the burden of proof set forth in Konzelman and Gayet without being permitted to conduct some discovery.  Knowing that discovery may be the next step may also facilitate more settlements of these cohabitation cases, where one party knows they face the risk of being exposed.  On the other hand, it may provide the warning to those who are cohabitating of how they must be extra careful in the personal/financial dealings of their relationship if they want to keep their spousal support or at least not see it get reduced.

NEW APPELLATE DIVISION DECISION REGARDING PARENTING COORDINATOR GRIEVANCES AND FEES

Following on the heels of Eric Solotoff's recent blog entry addressing the use of parenting coordinators, a new published (precedential) decision from the Appellate Division talks about grievances against parenting coordinators, parenting coordinator fees, and the need for a plenary hearing to address such issues.  In Segal v. Lynch, the Appellate Division addressed these issues in the context of a long, acrimonious history of events simply regarding the parenting coordinator's involvement in the highly contentious matter.

Soon after the trial court appointed the parenting coordinator pursuant to the Parenting Coordinator Pilot Program, the plaintiff called for the coordinators removal from the matter because the coordinator had contacted the trial judge to clarify the terms of an order.  In response to the plaintiff's indication that he would file a motion to have her recused, the coordinator pointed plaintiff to the Grievance Procedure outlined in the Pilot Program Guidelines, which required that plaintiff specifically outline his grievances to the coordinator before notifying the trial court.  A major issue of contention at both the trial level and on appeal was the parenting coordinator's indication that she would charge the plaintiff for her time taken to respond to his numerous grievances. 

After the grievances could not be resolved, the plaintiff submitted his grievance letter to the trial judge, who issued an Order to Show Cause why the coordinator should not continue in the matter and why plaintiff should not pay the coordinator's fees owed.  The trial judge ultimately found for the coordinator, concluding that the plaintiff's grievances were without merit and that the coordinator herself had acted "professionally and admirably" under very difficult circumstances.

In reviewing the matter on appeal, the Appellate Division reviewed the history of the Pilot Program, discussing the positive impact of parenting coordinators in helping to resolve various day-to-day parenting issues on the parties and the court calendar.  The Court directly quoted from the Guidelines as to the parenting coordinator's role:

The parenting coordinator's goal is to aid parties in monitoring the existing parenting plan, reducing misunderstandings, clarifying priorities, exploring possibilities for compromise and developing methods of communication that promote collaboration in parenting. The parenting coordinator's role is to facilitate decision-making between the parties or make such recommendations, as may be appropriate when the parties are unable to do so. One primary goal of the parenting coordinator is to empower parents to develop and utilize effective parenting skills so that they can resume the parenting and decision-making role without the need for outside intervention. The parenting coordinator should provide guidance and direction to the parties with the primary focus on the best interests of the child by reducing conflict and fostering sound decisions that aid positive child development. 

 Further, the parenting coordinator, as noted by the Court, cannot modify any Order or Judgment without mutual consent from the parties, as memorialized in a Consent Order.  To that end, as referenced in Eric's recent blog entry, the trial court cannot abdicate its role to the parenting coordinator. 

 

The Grievance Procedure set forth in the Guidelines is also more specifically set forth as follows:

 

               (8) Grievance Procedure — A party having a complaint or grievance shall discuss the matter with the Parenting Coordinator in person in an attempt to resolve it before pursuing it in any other manner. If the issue remains unresolved, the parties shall submit a written letter to the Parenting Coordinator detailing the complaint or grievance, with a copy to the other party, to both attorneys (if any), and to the attorney for the child(ren) if one is in place. The Parenting Coordinator shall within thirty (30) days provide a written response to both parties and the attorneys. The Parenting Coordinator at his/her discretion may schedule a meeting or conference call with the attorneys or with the attorneys and the parties in an effort to resolve the complaint. In situations where the grievance or complaint is not resolved by this process, the dissatisfied party may request a court hearing to make a determination on the issue(s).

 The Appellate Division concluded that the Grievance Procedure had been properly followed, but also concluded that there existed a contractual basis (in light of the parenting coordinator's retainer agreement) for the plaintiff to pay the coordinator's time for responding to his long list of grievances.  To that end, the coordinator's response served two (2) purposes - 1) it provided a defense to the charges against her, and 2) it constituted a "report" to the trial judge, from which the judge determined the baselessness of plaintiff's claims.  It was, therefore, also, a necessary component of the parenting coordinator's role to provide such a response for which she could charge fees to prepare.  The Appellate Division similarly noted that public policy was advanced by awarding the coordinator's fees for such work, finding that the inability to charge for such a response to grievances would effectively cripple the parenting coordinator program considering the number of parties dissatisfied with the process.

 

To that end, the Appellate Division concluded that the plaintiff was not entitled to a plenary hearing under the Pilot Program Guidelines, but that he was limited to merely requesting a hearing.  After such a request, it is then up to the trial judge to determine if such a hearing is warranted under a given set of circumstances.  In the present case, the trial judge concluded, in the mode of summary judgment (even though it was on the trial court's Order to Show Cause where summary judgment rules do not apply) that there existed no genuine issue of material fact warranting a hearing.  The plaintiff's act of simply referring to the coordinator as a liar did not justify a hearing.

 

Similarly, the Appellate Division concluded that the Guidelines also did not call for the holding of a hearing to resolve a pay dispute for fees incurred by the coordinator in performing her standard coordinator services (beyond responding to plaintiff's grievances).  The trial judge was found to not have simply "rubber stamped" the coordinator's requested amount of fees.  Rather, he conducted a searching review of the voluminous submissions before him in concluding that the services performed and amount charged by the coordinator were reasonable, and, as a result, no hearing was necessary.

 

While a parenting coordinator can serve a highly useful purpose under certain circumstances, this matter conveys how both parties must be willing to cooperate with the process, and how questioning the coordinator's role and performance might be a costly price to pay should a party's grievances not be resolved before a trial court addresses the matter.

 

Tax Treatment of Excessive Perks and Personal Expenses for Business Valuation Purposes

I recently blogged on the issue of how to treat unreported income, perks and other personal expenses paid through the business and the treatment of same for support purposes.  As noted in that post, the issue comes up both for support and business valuation purposes. 

In order to value a business, the experts come up with an income stream that gets capitalized.  That income stream is tax affected.  That is where the issue gets interesting.  More often than not, the experts tax affect the entire income, after adding back the perks, personal expenses, non-operating expenses, unreported income, etc. 

I have asked several of the forensic accountants why this is being done if this is note the economic reality for the business owner in that case.  More often than not, I have been told that you cannot assume that a buyer of the business would not declare all of the income and/or would improperly pay expenses through the business.  From a pure business valuation perspective, this seems correct and reasonable.

For purposes of equitable distribution, that remains questionable.  In the seminal case on business valuation in divorce in NJ, Brown v. Brown, discounts for lack of marketability and lack of control were not considered because the business was not really being sold.  Some have argued that Brown means a value to the holder standard is to be applied.  While I am not sure that that is the case, if discounts are not applied because there is no sale, then why are these excess perks and personal expenses tax affected when doing so artificially reduces the value of the business?  Put another way, if the business owner is not paying taxes on these things, why should there be this fictional tax be applied, which only serves to reduce value? At some point, I am sure this issue will be litigated further.  Until then, we will continue making the arguments on both sides.

Madoff Mess Hits the Divorce Courts Part II - The Appellate Court Speaks

Last year, I wrote a post on this blog about the Madoff Mess hitting the divorce Courts, the trial court's decision in that case and even a podcast that I had participated in about the decision.

In this case, in June 2006, the parties agreed to evenly split the $5.4 million in an account they had with Madoff Securities. As a result, the husband gave the wife $2.7 million in cash, and retained the account. As a result of the Madoff Ponzi scheme that has essentially rendered the account worthless, the husband has filed suit seeking the $2.7 million that he paid the wife. The husband (a prominent attorney with a large NY law firm) alleged that because the account turned out to be valueless, the spirit of the agreement was broken. The wife's position was the husband withdrew probably $3 million to pay the wife, so the asset did exist at the time of the settlement agreement.
 

Acting New York State Supreme Court acting Justice Saralee Evans decided that the husband is stuck with his decision to keep the account instead of withdrawing his money before the December 2008 collapse of Bernard L. Madoff Investment Securities LLC. The Justice noted that while the husband claimed the Madoff account held no assets, he did not allege it had no value. Key to the decision was that in 2006 and "the several years after that plaintiff maintained this investment," the account "could have been redeemed for cash, presumably significantly in excess of its 2004 value." In addition, the Justice held that "An investor's ability to redeem an account for value, was the assumption on which the parties relied in dividing their property and in doing so they made no mistake."The public policy of the finality of settlements was upheld.
 

At the time, I wondered about the ultimate fairness of this and said:

That said, if this case was in New Jersey, there may be the possibility of a recovery here. Though the general rule is that equitable distribution is not-modifiable, the issue may turn on whether there was $5.7 million in the account at the time of the divorce or whether that was simply an illusion created by Madoff's alleged fraud. If the account really had no value at that time, then the parties made a "mutual mistake". In that case, the settlement agreement could be re-formed to create an equitable result. If the money was actually in the account at that time, there could be a different result. One could argue that this really wasn't any different than any other investment that loses value - though that result seems harsh. However, assuming the husband had that money in your ordinary stock account, given the stock market over the last year and current financial crisis, it seems unlikely that his $5.4 million would still be $5.4 million. If there were just stock losses, it is highly unlikely that he would be entitled to any relief. Moreover, it is not unlikely that if the wife invested her $2.7 million in stock or real estate, that she has her full $2.7 million either.

Whether is is ultimately fair since the asset may not have really existed is another story. It is different than retaining a stock account and then the market goes up or down because in that instance, there really was an asset as opposed to a fictional asset. It is also different than holding on to a home whose value has decreased, as I have blogged on before.

It turned out, the Appellate Division in New York agreed with my logic and reversed the dismissal of the trial court matter and allowing the matter to be opened up.

The Appellate Court found that dismissal was improper and the husband had the right to try to pursue both the issues of mutual mistake (i.e. there never really was an account) and that the wife was unjustly enriched.  In coming to its decision, the majority of the court held:

The dissent states: “[a]t the time of the agreement, Steven had an account in his name with [Madoff].” Untrue. Steven never had an account in  his name with Madoff; on Madoff's own admission there were no accounts within which trades were made on behalf of investors.

The dissent then states, “Steven liquidated part of the account to fund his payments to Laura.”  Untrue. In Madoff's Ponzi scheme what appeared to Steven and Laura to be a partial liquidation of an account was simply a payment to Steven that came from funds deposited by a more recent “investor” in what the “investor” believed was his own account.

The dissent further observes, “[Steven] did not liquidate the rest of the Madoff account ... and he continued to invest in it.” Untrue. There was no account which could be liquidated, as became apparent when Madoff received $7 billion worth of “liquidation” calls from investors in 2008. Nor was Steven “investing” in an account; his further contributions went directly to pay other “investors” in the scheme.

Clearly, this case is far from over.  We will update you when the next move is reported from the courts.

HOW TO PREPARE FOR THAT INITIAL DIVORCE CONSULTATION

Visiting a divorce attorney for an initial consultation can be a difficult and intimidating proposition.  For some, it is the realization that their marriage may be over.  For others, it is simply the discussion of such deeply personal matters with a stranger.

Nerves or trepidation aside, the main purpose of the initial consultation is to learn about the process and understand what your rights and obligations could be.  The law is never black and white but has many shades of gray.  A good consultation will explain the black and white and touch upon the relevant areas of gray. 

The initial consultation is also important because this process lets you interview your potential counsel.  Not only is it important that you find the attorney you plan to hire to be competent and best able to represent your interests, but its important that you also like your potential counsel.  Sounds trivial but keep in mind that your divorce lawyer is someone who is quickly going to learn the good and the bad of you and your most personal relationship, your marriage.  Secrets aren't helpful and a level of trust is required.

So what can you do to make sure you get the most out of this initial consultation and at the same time provide counsel the relevant and important information needed?  Here are some suggestions:

1. While tempting, the initial consultation may not always be the appropriate time to divulge the day to day history of your 20 year relationship with your spouse.  Use the time wisely.  We ask prospective clients to complete an initial questionnaire providing us with relevant information.  This questionnaire serves as a road map so the important facts are not overlooked.

2. Be honest.  Answer all questions honestly remembering that the answers you provide will guide the attorney's responses.

3. Be familiar with your finances.  Bring, or at least review, your last 3 tax returns, pay stubs, W-2's, K-1's, business tax returns (or at least know the names of business entities), and if possible, create a list of assets and debts. 

4. Think about your main concerns before the meeting.  Consider writing down those questions you feel you need answered before you can proceed.  This will help you to get that information you are meeting with an attorney to receive.

5. Keep an open mind.  Attorneys are not magicians.  Not every question may be answerable at the initial consultation.  Sometimes further information or research is needed.  You don't just want an answer, you want the correct answer.

6. Be prepared.  Not all facts will favor your case.  Part of the initial consultation is to learn the strengths and weaknesses of your position and what may lie ahead in the divorce process.

A good initial consultation will be informative and comforting.  You should walk away having questions answered and armed with information that will hep you decide your next steps.  The attorney should walk away with the same.  As the process unfolds, more information will be revealed and/or strategy may change.  Working together, you can ease the stress that divorce will surely bring. 

The New Year's Resolution Divorce - Redux

Last year I wrote the indented piece below about the "New Year's Resolution Divorce."  We got a lot of response to that post, including it being cited elsewhere, so I thought I would re-run it.

Over the years, I have noted that the number of new clients spikes a few times of the year, but most significantly right after the new year.  Out of curiosity, I typed "New Years Resolution Divorce" into Google and got 540,000 results in .29 seconds.  While not all of the search results were on point, many were extremely interesting.  It turns out that my intuition about this topic was right and that there are several reasons for it.

One article on Salon.com put divorce up there with weight loss on New Years resolution lists. Also cited in this article was that affairs are often discovered around the holidays.  Another article linked above attributed it to "new year, new life".  Another article claimed that the holidays create a lot of pressures at the end of the year that combine to put stress on people in unhappy or weak relationships.  Family, financial woes, etc. associated with the holidays add to the stress.  Turning over a new leaf to start over and improve ones life was another reason given.  This seems to be a logical explanation for a clearly difficult and perhaps heart wrenching decision.

In my experience, people with children often want to wait until after the holidays for the sake of the children.  There is also the hope, perhaps overly optimistic, that the divorce will be completed by the beginning of the next school year.  These people tend to be in the "improving ones life" camp. 

So as divorce lawyers, we hope to avoid or at least resolve in advance the holiday visitation disputes that inevitably crop up, then relax and enjoy the holiday as we await the busy season to begin. 

In 2010, the phenomena started early for us and many other attorneys.  We were contacted by more people in December than in any year in recent memory.  Moreover, we have heard of more people telling their spouse it "is over" before the holidays this year.  I suspect that in some, it was the discovery/disclosure of a new significant other or perhaps pressure being exerted by that person that was the cause.  In other cases, the person just didn't want to wait until the new year to advise their spouse.  Whatever the reason, we await those who see 2011 as a chance for happiness or a fresh start.  Happy New Year?!?!

FEARS OF A SUPPORTED SPOUSE - MAINTAINING THE "STATUS QUO" DURING A DIVORCE PROCEEDING

Perhaps its the stress of family life during the holiday season, but many clients of late have claimed that the supporting spouse has stopped supporting the family as he did during the marriage.  The reasons are varied, but often of the same cloth - i.e., the payor spouse claims that he is now earning less money than before, the payor spouse claims that the payee spouse is overspending (despite there being no change from the marital lifestyle) and believes that the supported spouse should get a job after having never worked during the marriage, or, most egregiously, that they simply believe that the marriage is over and a support obligation is over unless a Court directs otherwise.

These situations often leave the supported spouse afraid and wondering how they are going to meet everyday expenses for herself and the kids, while also litigating a divorce matter against their financially superior spouse.  Often this is part of the supporting spouse's underlying strategy - economic coercion, i.e., essentially trying to force the supported spouse to settle under his terms without going through a protracted litigation.

It is those hardball tactics, however, that often create the protracted litigation sought to be avoided.  New Jersey's support statutes and case law dictate that the "status quo" lived during the marriage is to be maintained during the divorce process.  This does not only mean that the supporting spouse will continue to contribute as he did during the marriage.  Insurances and beneficiaries on assets will be maintained, and commonly, restraints on assets will be imposed to prevent a sudden transfer or spending of money.  In addition, the supported spouse will often need counsel fees to litigate on an "even playing field" with the supporting spouse to avoid the coercive situation I described above.

Case Information Statements play a critical role in resolving these situations, whether by amicable settlement or as part of what is called a motion for pendente lite support (support during the proceedings).  The Case Information Statement or "CIS" must be filed by each party early on after the filing of a Complaint for Divorce.  It contains a section known as Part D, under which there are three Schedules - A, B and C.  These schedules require the party to fill in all expenses on a monthly basis as to the marital lifestyle, as well as the person's current lifestyle, including fixed costs (such as the mortgage and utilities) and miscellaneous expenses that come as part of everyday life - even down to hair care and dry cleaning. 

The task of completing the CIS can be daunting, but it is a pivotal component to resolving any pendente lite support issues because it aids in demonstrating how much support you will need as the supported spouse during the divorce proceedings (as well as assist in litigating long-term financial issues beyond the proceeding).  Inevitably, even though the CIS is signed under oath, the parties will almost always have contrasting lifestyle expenses, often with the supported spouse having a higher lifestyle than that set forth by the supporting spouse.  From there, whether the issues will resolve amicably without having to file a motion depends on the parties, the lawyers, and a given set of facts.

If the matter does not resolve amicably, the supported spouse is generally left with no choice but to file a motion to have a court address and resolve the issues.  It can safely be said that such a motion is often the most important one that will be filed in a given case.  In the client's eyes, filing a motion is a daunting task, as the client has to evaluate whether they want to proceed in such a fashion, spend the money to have counsel prepare and argue the motion - all without knowing what she will end up once the matter is in the hands of a trial judge.  Plus, the other spouse will almost always not merely oppose the motion, but file for relief of his own, such as a set parenting time schedule.  The trial judge will read certifications from each party containing various allegations and exhibits that may be difficult for the parties to see on paper as the life stories has been laid bare for the court.  It is then up to the court, after hearing oral argument from the lawyers, to make findings of fact and decisions after oral argument.

What will the ultimate result be?  Your legal counsel will hopefully have advised you in advance as to what may or may not happen.  Whether the trial judge believes your certified statements as to the marital lifestyle and your needs (as well as those of the children) to continue maintaining the "status quo" during the divorce proceeding cannot be predicted. 

As this is one of the most important, if not the most important motion filed during the proceeding, a client must ensure that they have retained counsel capable of understanding the issues, what to ask for, how to present your case, and, oftentimes, demonstrating an empathy for your position.  The mechanisms in place that I have described above exist to protect the supported spouse and eliminate or reduce the fear experienced when litigating in what may feel like a difficult position from the outset.

Appellate Division Holds that Trial Court Cannot Cap a Party's Counsel Fees

Can a trial court tell a litigant is a divorce that they don't have to pay their lawyer more than a capped amount.?  On November 30, 2010, the Appellate Division in the unreported case entitled McClutchy v. McClutchy answered this question no.

In this case, what apparently was a hotly contested matter that went to trial, but which the trial judge deemed ordinary and not complex, at the end of the trial the court was called upon to assess the parties' respective request for counsel fees that they were asking the other party to pay. Normally, each attorney would submit a Certification of Services required by Court Rule explaining and listing the work done. In this however, the trial court limited them to a one page submission about what was owed and what had been paid.  Thereafter, the trial judge, thinking that the parties' respective fees were excessive ruled that the parties fees were capped at $50,000 each, despite that substantially more had been expended and was owed, and moreover, that the lawyers could not seek to collect the amount over and above.  One of the things the judge commented on was that he thought that the matter could have been handled by an associate, as opposed to experienced counsel of the client's choosing.

The Appellate Division reversed this decision finding that it was beyond the scope of the trial court's authority, especially where the client was not objecting to the fee.  Even if that were to have happened, there are other avenues to address this and the trial court could not do so.

This case, while clearly an aberration in the system, raises several issues.  First, if a client retains and wants pre-eminent counsel to represent them, it is not for the court to dispute their right to hire counsel of their choosing.  in addition, there are times where cases that seem "easy" or "garden variety" do not settle.  Some times it is because one party is unreasonable or acts in bad faith.  Some times it is because both parties are unreasonable.  Some times it is because one party does not want a divorce so they drag the matter out with the hopes that the other spouse will "come to his/her senses" and take him/her back.  Of course, by precluding the filing of a Certification of Services, the Court did not get to see what was done and perhaps did not get information as to why this seemingly easy case went to trial. 

This case is another cautionary tale.  Things aren't always as they seem.  Litigant's have a right to pursue issues in court and have a court make a decision on.  They also have a right to fully present their request for counsel fees to explain why the quantum of fees was what it was.

Court Finds That Someone Who Doesn't Pay Their Taxes Cannot Have Child Support Calculated As if They Did

On October 28, 2010, the Appellate Division issued a very interesting opinion in the case of Holden v. Holden.  While I will be doing another blog on the aspect of the case dealing with child support when the parties' incomes exceed the Child Support Guidelines, this blog deals with an interesting decision regarding determination of income - particularly net income - for child support purposes. 

In this case, the father's salary was $240,000,  In his submission to the court, her argued that his budget included a tax reserve for anticipated taxes and an amount for debt service for past due taxes.  The mother argued in response that the husband's gross income should be treated as net income (child support is calculated after determining net income under the Child Support Guidelines) since the husband had not paid federal taxes since 1997, and in fact, the father sought employment outside of the country to evade his taxes.

The trial court agreed with the mother finding that the father failed to present credible evidence of withholding taxes and based upon his past practice of ignoring his tax obligations, based his support obligation on $240,000.  The Appellate Division affirmed.

This is a refreshing application of economic reality to get to a fair result.  Though not precedential, I think the arguments can be possibly extended.  In your average case, the Child Support Guidelines calculate taxes based upon published tax schedules, as opposed to actual taxes paid.  If someones actual tax obligation is far less, because they have additional deductions or for any other reason, they actually have more net income than the Guidelines calculations might reflect.  This case certainly gives rise to an argument that actual taxes paid should be used. 

Moreover, sometimes we add back perquisites to income and, in fact, the Guidelines say that "in-kind" benefits are income.  However, if they in-kind benefits are not taxes, why should they be added to income and tax effected for support purposes?  Similarly, when someone is self employed and the business pays personal expenses (legitimate or not) that get added back to income, why should they be tax affected if tax is not actually paid? 

If the goal is fairness based upon economic reality, this case actually provides an arrow in an party's quiver to make the argument that reality should be considered.

DIVISION OF RETIREMENT ASSETS - WHAT IS FAIR AND EQUITABLE?

Throughout the course of this blog's existence in the family law blogosphere, we have cautioned and advised on the pitfalls of failing to timely divide retirement assets.  An entry addressing this issue dating back almost two years can be found here, only showing how this important issue is one that divorcing parties often do not consider, but are faced with after the divorce is finalized.  How about on the flip-side of the coin, so to speak?  For the party whose retirement asset is to be divided, what is "fair and equitable" for equitable distribution as to when the asset should be divided and at what value?

The Appellate Division recently addressed this issue in the matter of Ejiofor v. Ejiofor, where it reversed and remanded a trial court's decision for a determination of the current value of the husband's share of the wife's retirement accounts. 

The facts of relevance are relatively sparse - the parties were married in 1989, separated in December 2004 and divorced in April 2007.  On March 15, 2007, a final Judgment of Divorce was placed on the record, incorporating an oral property settlement agreement.  The agreement included, in part, that the parties would equally share their retirement and pension accounts.  The Judgment included language stating that the accounts would be "evaluated" as of December 15, 2004, "or as close to that date as possible." 

Post-judgment litigation followed regarding various equitable distribution provisions of their agreement.  In October 2008, following a plenary hearing, the trial court Ordered that the parties obtain an expert appraisal of the retirement assets to determine a proper value for distribution.  A little less than a year later, the husband filed a motion asking that the trial court set his share of the wife's retirement accounts at approximately $51,000 and that a QDRO be prepared providing him with that sum from the wife's "AIG VALIC" account.  The trial court granted the husband's motion, holding that the value as of December 15, 2004 entitled the husband to the $51,000 sought.

In reversing and remanding the trial court's decision, the Appellate Division noted first and foremost that the parties' agreement did not set a date of distribution of the accounts, and also critically did not indicate which party would bear the risk of any diminution in value of the accounts post-December 2004.  The wife argued that providing the husband with the $51,000 distribution would be entirely inequitable because the value of her AIG account had decreased substantially due to the down economy, thereby leaving her with a far lesser share of the retirement assets should the decision be upheld.

While the Appellate Division agreed that December 2004 was the appropriate date for valuation of the retirement accounts, it was not equitable for the husband to receive a 50% share based on the 2004 value five years later because any change in value required consideration.  Since the agreement was deemed by the Appellate Division to be, at best, ambiguous as to which party would bear the risk (if not both of them) of any decrease in value, and neither party offered evidence as to their respective intents in entering into the agreement, the Appellate Division was required to interpret the language of the agreement "in the most reasonable and fair manner" in light of the parties' equal bargaining power. 

From the standpoint of fairness/reasonableness, the Appellate Division concluded that the negative result of the husband's decision to wait for five years to move for entry of a QDRO, as well as a lack of evidence that the wife unreasonably delayed such entry (since the parties reasonably disputed the values at issue), fell upon him.  The Appellate Division, therefore, reversed and remanded for an expert to determine the cash value of the husband's share and what amount he could withdraw from the wife's account, using the December 2004 value and evaluating subsequent change due to market impact.

While it is critical that QDROs be timely prepared and entered, the real moral of the story here is that one party should not be made to suffer the inequity sought by the other party where the agreement does not provide a complete picture and the agreement, in the first place, was designed with fairness in mind.

EDITOR'S NOTE:  IF PARTIES ACTUALLY INTEND ON DIVIDING A SPECIFIC DOLLAR AMOUNT AND/OR NOT ACCOUNTING FOR INCREASES/DECREASES IN ACCOUNT VALUES DUE TO MARKET FORCES BETWEEN THE VALUATION DATE AND ULTIMATE DIVISION OF THE ACCOUNTS, THEY SHOULD SAY SO.  IN THIS CASE, BY USING A FIXED DATE, ONE PARTY RECEIVED A WINDFALL WHICH WAS OBVIOUSLY UNFAIR.  ERIC S. SOLOTOFF

When Change of Circumstances is Not Really a Change Necessary to Modify Custody

This post was written by Jessica Goldberg, a new associate in the Family Law Practice Group in the Roseland office and also, a new contributor to this blog.

The recent Appellate Division’s decision in Dunn v. Willis, although unpublished and therefore not precedential, brings up some interesting issues regarding custody disputes. First, it is important to note that when a judge is asked to consider a change in custody, that judge must first find that there has been a change in circumstances warranting further proceedings. In Dunn v. Willis the Judge concluded that the mother, who was seeking custody of her son, had failed to show the necessary changed circumstances. The Appellate Division agreed with the Family Court Judge and within its’ decision a warning can be construed about the dangers of too often involving the Court in family matters.

The history of this case is as follows: Mom, unmarried, had an alcohol abuse problem and although she had stopped drinking by November 2002, she was participating in an inpatient rehabilitation program and the Division of Youth and Family Services was involved with the family. In January 2003 the Court entered a consent order, signed by mom, the child’s maternal grandparents, and the child’s paternal grandparents. This consent order gave custody to the maternal grandparents and visitation rights to the paternal grandparents with the condition that the child’s father not be present during their visitation time. In August of 2003 mom was awarded parenting time with her child. In 2004 mom’s stability begins to become apparent – she is out of rehab, she has a full-time job and she has bought a home near the child’s school. In October 2004 mom makes a motion for a change in custody, but the Court denies this motion. In May 2007 mom gets a bachelors degree in nursing. In December 2007 the Court enters an order increasing mom’s parenting time, however, the Court again denies mom custody. Finally, in April of 2008 mom is awarded joint legal custody with her parents, the child’s maternal grandparents. Another order is entered in June 2008 restricting mom from making unilateral decisions without approval from her parents with whom she shares custody.

Then, in June 2009, mom files a motion, now the subject of this Appellate decision, to obtain custody of her son. By this time mom is working full-time as a nurse and is about to receive her Masters Degree in nursing. Her relationship with the child’s father has improved to the point where they are communicating and the child is building a relationship with his father and the father’s younger son. During this entire time the child has lived with his maternal grandparents and an older half-sister, however, the half-sister is now going off to college and mom asserts that the child, now eleven years old, wants to live with her. The Court, however, denies mom’s request to interview the child or appoint an expert to evaluate whether a change would be in the child’s best interest. The Court denies mom’s motion on the grounds that mom has failed to show the necessary changed circumstances.

The Appellate Court, in affirming the Judge’s decision, points out that the Judge who addressed the Custody issue in 2009 had also entered the orders in December 2007 and June 2008. The Appellate Court states that “[the circumstances relevant on this application were only those that had changed since April 2008” when mom was awarded joint legal custody. The Appellate Court highlights that mom’s success and progress from the circumstances that surrounded her family in 2003, when her parents were awarded custody of her son, were all known in 2008 when she received joint custody. Therefore, all of moms’ progress cannot be considered in 2009. When we look at the facts of this case from 2003 through 2009 we see substantial changes – mom went from a parent with an alcohol problem in an inpatient rehabilitation program to a homeowner with a full-time nursing job on the verge of receiving a Master’s degree. When the case is considered from 2008 to 2009, however, as the Family Court Judge considered it, there are very few changes in circumstance.

This case can be viewed as a warning about litigating a matter too frequently. This child had been living with grandparents for a long time and it is not clear from the facts that it would have been in his best interest to go and live with mom. If, however, the Court had not been so involved through out the years and if the Judge had been looking at the facts for the first time in 2009 since the initial consent order in 2003, it is safe to say that he would have at least found a significant change in circumstances and, at the very least, he would have been compelled to proceed with an investigation into the custody matter – interview the child, appoint an expert, etc. I concede that it is difficult to stay out of Court when the Division of Youth and Family Services is involved.  But there is a lesson here for any party getting involved in a custody matter. A party should be careful about how many times they file a motion and ask the Courts to review the facts of their case. If a party has designs about seeking major changes in a parenting plan or custodial situation in the future, a party should be careful about entering into a consent order for small changes.  They should be wary of baby steps, because each time a Court enters an order, whether by consent or otherwise, those facts and that time period become the circumstances and point in history a judge will look to first when asked to consider the matter again.
 

Shared Custody - It is a Possibility

I suspect that anyone that read my last blog might think that I am against shared custody or that I believe it to be impossible.  That is not the case.  Rather, my point in that post was to address possibly bad faith requests for joint custody by those people who have historically neither spent a lot of time with the children nor did much of the actual parenting.

But shared parenting time is not an impossibility.  Supposedly, it requires parents who have the ability to communicate and cooperate.  That said, I have seen parents who cannot have a civil word with each other effectively co-parent. 

Shared parenting, by New Jersey standards, is anything between 28% (104 overnights) and 50% of the overnights with the children.  Curiously, these definitions actually stem from the child support guidelines.  When the newest iteration of the Guidelines came into being in 1997 or 1998, they had two different worksheets - a sole parenting worksheet and a shared parenting worksheet (104 overnights and over).  While non-custodial parents now got child support reductions with each overnight, the credit was greater using a shared parenting worksheet. As a result of the new guidelines, negotiations over additional overnights began, in many cases for obvious reasons.

However, in the context of shared parenting that was the subject of my prior blog and this one, I am talking about substantially more time, basically 40-50 percent of the overnights.

For parents who were both very involved with the children and who schedules allow, this is a possibility.  Again, I am not sure that it is realistic in most cases where one parent was a stay at home parent and the other left the house at 6 am and got home at 7 or 8 p.m.  But in cases where there is flexibility in the work schedule and/or the ability to spend a lot of time, coupled with significant prior involvement, shared parenting, in my opinion, can be considered.

I often tell fathers (typically), that they don't have to settle for alternate weekends plus one night a week for dinner (one rather old fashioned judge called this the "off the shelf" parenting plan.)  Rather, if they want more time and really can exercise it, that they should seek it.  In fact, over the last decade or so, in most custody evaluations I have seen, it has been rare that simply the "off the shelf" parenting plan is ever recommended.  Keeping in line with much of the new research saying that children should spend as much time as possible with each parent, most of the evaluations I have seen recommend some type of shared parenting (more than 28% but usually not 50%). 

 

The bottom line is that when logistically possible and when sought for the right reasons, shared parenting could very well be in the children's best interests.

A BUSY WEEK FOR CHANGED CIRCUMSTANCES CONTINUES

Following on the heels of an earlier blog entry this week addressing "alimony escalators" in the context of proving a change in circumstances meriting a decreased alimony obligation, a new unreported (not precedential) decision from the Appellate Division in the matter of Eick v. Eick, found that the husband had fulfilled his initial "changed circumstances" burden meriting the matter being sent back to the trial court for a plenary hearing on the issue. 

In Eick, the husband was a self-employed bookbinder who was obligated to pay permanent alimony to his former spouse pursuant to a February 2007 property settlement agreement in the amount of $1,500 per month, as well as $2,000 per month in child support for the parties' two younger children (a number agreed upon that went beyond the child support guidelines calculation).  Critically, the PSA established that such figures were based on an income of $117,000 for the husband and $29,000 for the defendant.  As an important aside, it is important in any settlement agreement to note what incomes were utilized to determine support so that a baseline figure exists should the issue arise in the future.

In March 2009, the payor husband filed a motion to reduce his support obligations based on an alleged change in circumstances - a claim that his business had "declined dramatically" due to online research tools utilized by many clients that rendered the need for his services substantially diminished.  He also claimed that his business had suffered due to the growth of imported bond printed material, as well as the general downturn in the economy. 

Interestingly, the former husband supported his application by submitting the report of an employability expert, who concluded that, while he could learn new skills, changing careers was not a realistic possibility after 27 years in the bookbinding business.  The report further concluded that his best option was to stay in his industry, anticipate a continued decrease in business volume, revenue and earnings, and consult with a career counselor or business consultant to determine available options.

In reversing and remanding the trial court's decision denying the husband's modification motion, the Appellate Division noted that not only had his income decreased, but that the wife's income had "significantly increased" - an undisputed fact set forth in the wife's Case Information Statement that the trial court failed to address.  The Appellate Division also concluded that the trial court failed to make sufficient findings as to whether the husband's decreased earning situation was of a permanent or temporary nature, since a temporary situation is not enough to merit a changed circumstances finding.  Even though the trial court noted that the bookbinding industry had undergone difficult times when the PSA was entered, the judge also noted that the situation was further "complicated" by the downward economy.  As a result, the trial court's denial of the husband's application was reversed and remanded for a plenary hearing.

"Settlement Anxiety" - An Effective Tool or an Unfair One?

Recently, I was at a mediation where the mediator, when telling us his assessment of my client's case, said that he was creating "settlement anxiety."  I had never heard this term but what I believe was meant was that the mediator wanted the client to have "anxiety" about his/her position in order to be more likely to make compromises and settle.  If the goal is getting a settlement at all costs, I guess it makes sense - but is it fair?

In most cases, there is a "realm of reasonableness" or a range in which any settlement would be essentially fair.   Perhaps, a fair alimony figure could be between $100,000 per year and $125,000 per year.  A fair resolution could be either of those numbers and anything in the middle.  In most cases, people, with all relevant facts and acting reasonably, negotiate within the realm of reasonableness, but at either end depending on which side of the case they are on.  In that case, a mediator trying to create "settlement anxiety" will try to express the flaws in either case to get the parties to meet somewhere in the middle to achieve a result that is fair.

But what about cases where one party is negotiating within the realm of reasonableness and the other is not?  Put another way, what about cases where one party has the law and the facts pretty much on their side as to most issues and the other side is taking a position that is absurd?  In this case, should the mediator be trying to create similar "settlement anxiety" in both parties?  Add another level - what if the mediator knows that the unreasonable party will never settle the matter in a reasonable fashion?  Should the mediator pressure/create the same amount of "anxiety" in the more reasonable party just to achieve a settlement even though everyone knows it is unfair?  Should the result be settlement at all costs?  Does this type of pressure on the righteous party just to get a deal done artificially undermine a party's relationship with her counsel and experts, if just for settlement purposes, they are told that their case is weak when it is not? 

In my humble opinion, pointing out the legitimate limitations in someones case in order to help create a settlement is fair and appropriate.  On the other hand, creating artificial anxiety just to get a settlement all all costs because one party is acting unreasonably or negotiating in bad faith is not.  The system should be fair and equitable and the parties are entitled to justice.  It is neither fair nor justice to lessen a party's confidence in their case, artificially, just because the other side will never settle in a fair and reasonable manner.  That does not mean a party cannot give more ore receive less just to get a case done and move on with their life.  That is their choice.  On the other hand, they should not be manipulated just because the other side refuses to be reasonable.  And as I have said before, sometimes you just have to try a case.

CALIFORNIA'S "PROP 8" STRUCK DOWN BY FEDERAL COURT

In what could be the precursor to a long-awaited battle before the United States Supreme Court, a federal court in California today struck down as unconstitutional the controversial, voter-approved "Proposition 8" law banning same sex marriage.  Analysts of the 136-page opinion have suggested that it is so carefully and thoughtfully drafted that the Highest Court in the Land may find itself up against the wall should it seek to overturn its findings and conclusions in the future. 

The federal court judge found that Prop 8 essentially required discrimination in its implementation on the basis of both sex and sexual orientation with an enforced notion that "gays and lesbians are not as good as heterosexuals."  From a constitutional law standpoint, the law did not live up to even the most lenient "rational basis" test (i.e., the law is not rationally related to a legitimate state intertest) to pass muster under the Constitution's Equal Protection Clause. 

In what can only be described as the sort of monumental rhetoric that will likely be remembered for years to come, the opinion concluded in response to supporters of the law who argued that same-sex marriage violates the fundamental notions of marriage and procreation, "Tradition alone, however, cannot form the rational basis for a law."

Interesting, however, is that the same federal judge immediately stayed his own decision, pending appeals by supporters of the now unconstitutional law.

We will continue to update this blog as details unfold.  For an earlier blog entry on this topic, click here and here.

NJ Supreme Court Refuses to Hear Attack on Inequities of Civil Union Statute

On July 26, 2010, an equally divided New Jersey Supreme Court refused to hear an attack on civil union statute in a motion filed in the Lewis v. Harris case.  Rather, the Court's Order held that the matter cannot be decided without a trial like record and as such, denied the motion without prejudice for a new law suit to be filed.  The Order specifically noted that it made no determination on the consitutionality of the civil union statute.

In the dissent by the other three Justices, they framed the issue as follows:

Plaintiffs are six committed same-sex couples who have filed a motion in aid of litigants’ rights claiming that almost four years after Lewis v. Harris, 188 N.J. 415 (2006), and three-and-one-half years after passage of the Civil Union Act, N.J.S.A. 37:1-28 to -36, they still are denied the “full rights and benefits enjoyed by heterosexual married couples” mandated by the equal-protection guarantee of Article I, Paragraph 1 of the New Jersey Constitution. In their papers, plaintiffs detail a host of workplace, public accommodation, family law, economic, and various other “rights and benefits” that, they allege, are
not afforded to them despite the Civil Union Act and the command in Lewis. In addition to certifications by the parties, plaintiffs cite to the report of the Civil Union Review Commission, N.J.S.A. 37:1-36, a body established by the Legislature as part of the Civil Union Act to evaluate the Act’s success, which concluded that civil unions have failed to deliver the mandate of equality guaranteed by Article I, paragraph 1. However, plaintiffs’ record has not been tested in the crucible of a litigated matter. Thus, we realize that we do not have a sufficient basis for debating the merits of the application, which raises a matter of general public importance and one of constitutional significance.

The next step should be the development of a record on which those important issues can be resolved quickly. At the very least, oral argument would have helped to guide us on the best procedural course for creating such a record. We are disappointed that three members of the Court have voted to deny the motion without oral argument and that plaintiffs must now begin anew and file a complaint in the
Superior Court seeking the relief to which they claim they are entitled. If plaintiffs’ allegations are true -- and we will not surmise whether they are or are not -- then the constitutional inequities should be addressed without any unnecessary delay. Therefore, we would hope that the proceedings in the Superior Court will be conducted with all deliberate speed.

One wonders whether there would have been a different result had Justice Wallace had been granted tenure and there was a full court of seven members.  That said, stay tuned for the next installment once the next round of litigation of this issue begins.

Is No-Fault Divorce Coming to NY? We Have it in NJ

On June 15, 2010, the New York Times reported on several proposed new laws affecting family law practice in New York.  One was to adopt no-fault divorce, which has long been proposed and long been opposed. At present, one still must prove fault grounds for divorce in order to get a divorce.  This has lead to protracted litigation that some have called cruel and unnecessary.  As the no-fault bill has finally passed the Senate, there is an expectation that it will also pass the assembly.

New Jersey has had no fault divorce for many years, though in actuality, it has really been prevalent for the last 4 years or so when "irreconcilable differences" were added as a cause of action.  Prior to that, the only no-fault ground was 18 month separation.  As most people did not want to wait 18 months, the majority of divorce complaint alleged "extreme cruelty" that made it unreasonable and improper to require the parties to remain married.  In many ways this was somewhat bogus because there was rarely any real testimony about the allegations other than to re-affirm that what was in the complaint was true and correct and if asked to testify about it at length, the testimony would be substantially the same. 

That said, despite telling parties not to worry about it and not to get upset about it, they almost always did (not to mention that there was no a public record of very private gripes).  As such, the other party would then file a counterclaim alleging their own version of "cruelty."  Thankfully, irreconcilable differences has in most cases done away with the need to go through the financial and emotional expense of this type of Complaint (though there are times when it is still necessary for other reasons). 

The only thing that I miss as a divorce lawyer in not reviewing the cruelty complaint and counterclaim is that it may take a little longer to really understand the dynamic between the parties that often would come out loud and clear in their initial pleadings.  That said, no-fault is still better in most cases.

VETERAN'S DISABILITY PENSION AND SOCIAL SECURITY DEEMED INCOME FOR PURPOSES OF DETERMINING ALIMONY

In an unreported (non-precedential) decision in the case of Brown v. Brown  released on May 25, 2010, the Appellate Division determined that veterans disability benefits and social security benefits are income for purposes of determining alimony.  In this appeal of an Order that granted some alimony reduction but not as much as the former husband sought, the facts are not particularly interesting.  That said, what was interesting was that the reduction was not as much sought (and in actuality, the ex-husband sought an elimination of alimony, because the court considered the veteran's disability pension and Social Security over his objection.  In fact, he tried to argue that the spendthrift provisions (provisions that prevent creditors from attacking certain assets/benefits) in the relevant federal laws prevent such consideration but the Court noted that a spouse seeking support was not a creditor within the meaning of the law.

The matter was, however, remanded because the trial court did not analyze the statutory factors when reducing the support.  As noted in my blog last week about the Walsh case, when dealing with a motion to modify alimony, once the Court determines ta ht there is a change of circumstances, they have to look at the needs of both parties.  In fact, if the Court makes an initial finding of a change of circumstances, the court must analyze how much the alimony should be in a modification application the same way it would in an initial alimony application.   

IF TIGER WOODS AND ELIN CAN SETTLE CUSTODY, ANYONE CAN

The online edition of today's New York Post reported that Tiger Woods and his wife Elin have resolved the issue of custody.

The details were not really set forth in the story nor are they really important.  Assuming all that has been reported on is true (and quite frankly if even if only some of it were true), if there is ever a spouse that had a right to be really mad it is Elin Nordegren.  Yet even these people were seemingly able to put aside the anger, lack of trust, resentment, etc. that is likely to exist to do what is best for their children.  From all accounts, it does not appear that the children were used as pawns. 

So if this story is try, these people should be commended and serve as an example to others (at least as to this issue and maybe golf) on how to put aside the emotional issues surrounding a breakup and potential divorce and put the children first. 

READ MARK ASHTON'S EXCELLENT POST ENTITLED "A DIVORCE NEGOTIATION PRIMER"

Mark Ashton, a partner in our Exton, Pennsylvania office, and a contributor the firm's Pennsylvania Family Law blog, wrote an excellent post on that blog entitled "A Divorce Negotiation Primer".

There are several points I would like to highlight:

  • negotiations are confidential and cannot be introduced in court, except for very limited circumstances, but not as to the ultimate issue that is the subject of the negotiations.
  • negotiation is intended to narrow issues
  • at the time of trial, no one is bound by the positions taken during negotiations
  • a party who negotiates backwards (for example making a demand, then increasing the demand), risks losing credibility in the negotiations and also causes their attorney to lose credibility.
  • Put all issues on the table as early as possible so as not to spring new issues when settlement appears near and/or give a party false hope of settlement when the parties are not really all that close.

As usual, Mark's advice is good advice. 

STAR LEDGER ADDRESSES THE ISSUE OF SOCIAL NETWORKING AND DIVORCE

Following up on my recent blog entry talking about the impact of social networking sites such as Facebook and MySpace on the world of divorce, a recent article from the Star Ledger by Sue Epstein (no relation despite our interest in the same topic) discusses how divorcing couples are turning to these websites for evidence to use in their matrimonial proceedings or to simply talk about the divorce itself.  The article states that more than 80% of the nation's top divorce attorneys have seen an increase in cases involving social networking evidence pursuant to a survey by the American Academy of Matrimonial Lawyers, with more than 66% of such evidence found on the ever popular and enduring Facebook. 

Evidence found on these sites may be used for any number of purposes.  Examples cited in the article include using evidence found on a child's Facebook page in a custody proceeding, to locate a person to simply serve them with a divorce complaint, to prove adultery where the party lists themselves in their site profile as "single," or even to prove wealth or ownership of assets when the ability to pay support is in dispute. 

Children all too often are dragged into their parents' divorce disputes, and, not uncommonly, encounter postings by their parents on Facebook and other sites discussing the other spouse, the divorce, and the like.  Oftentimes parties do not realize that not only can potentially hundreds, to thousands of people see the postings, but their children can as well.  The emotional impact of such a finding can be dramatic, in addition to impacting the outcome of a custody dispute. 

As I suggested in my prior posting, posting anything about yourself on these social networking sites essentially makes your life an "open book."  To do so in the context of divorce or custody proceeding, however, may ultimately play a part in determining the outcome of your case.     

EDITOR'S NOTE:  Whether it is Facebook, MySpace, emails or text messages, people often tend to be their own worst enemies in divorce, emboldened to put certain things in writing that they would never say at loud.  Once something is in writing and is either posted on the internet or the "send" button is clicked, it is potentially around forever.  All to often, these items create excellent evidence for various purposes in a divorce.  So if you are going through a divorce, a good idea is to get off of Facebook and/or Myspace, or if you wont, at least be very judicious in what you disclose. Consider not posting pictures of your children especially if that will lead to a battle.  Don't disclose you relationship status and post frequent updates about it.  Carefully read and re-read emails to your spouse, ex-spouse and others to make sure that they are not provocative or can otherwise be used against you.  Think "less is more" or "Joe Friday" ("just the facts.")  The case you save can be your own.  Eric S. Solotoff

SHORT SALE FOR CASH? AGGRESSIVE PLAN MAY HELP DIVORCING COUPLES

On April 5th, the struggling housing market will face a new ally in the form of a short sale program being aggressively pushed by the Obama Administration to help millions of home owners escape from mortgage debt by selling their homes for less than the balance of the mortgage while receiving an additional monetary payment to do so.  As the government's attempts to assist homeowners struggling to make their mortgage payments have only slightly helped according to a recent article in the New York Times, the new program will pay $1,500 to the short selling homeowners to "relocate."

The benefits of the plan are hoped to be widespread, as lenders will ideally receive more money than with a foreclosure, the borrowers will experience a softer hit to their credit - including the lender's assurance that they will not later be sued for an unpaid mortgage balance - and fewer homes will be empty on the foreclosure market.  To protect from cases of fraud, lenders will utilize real estate agents, who will determine a home's value and, by correlation, the minimum acceptable sale price.  Adding another layer to this new system, the agent's determined value will not even be shared with the home owner, but the lender is required to accept any offer equal to or higher to such value.  What happens when a home owner has multiple mortgages on a single property, however, remains unclear.

From a family law standpoint, this plan provides the sort of good news that divorcing spouses struggling with what to do with their "under water" marital residence are looking for.  Whether it actually fulfills that glimmer of promise, however, remains unclear.  In the down real estate market, how to equitably distribute the home has proven challenging.  Oftentimes, neither party can afford to continue residing in the marital home, refinancing is unavailable due to the negative equity, neither party wants to face the credit hit of a foreclosure, and there is no money to cover the shortfall debt that might result where the house is sold for a price lower than the outstanding mortgage.

Short sales with a guarantee that the lender will not come after the borrowers such as that in the President's plan are therefore a desirable way out.  Short sales generally tend to be a risky, slow moving process with no guarantees.  With the Obama Administration's new plan to boost the housing market, hopefully such situations will take a turn for the better.

COLLABORATIVE DIVORCE: PANACEA OR RECIPE FOR DISASTER

Previously we blogged on alternate dispute resolution methods ("ADR") such as mediation and arbitration. "Collaborative Divorce" is another ADR method.

"Collaborative Divorce" is defined as  a form of alternative dispute resolution for divorcing couples where a  team approach is used to reach a settlement. Both parties to the divorce are supported by their lawyers; however, they work cooperatively with their spouse.  The collaborative process uses informal discussions and conferences attended by both spouses and their attorneys to settle all issues. The collaborative process is premised upon an atmosphere of honesty, cooperation, integrity, and professionalism. It requires that both spouses, with the assistance of their attorneys, provide all pertinent documents and information relating to the issues to be settled. In the event that experts are necessary, it encourages the use of jointly retained experts. Both spouses and attorneys are required to work together toward a shared resolution that is geared toward the future well being of the family. If the parties cannot reach a settlement through the collaborative process approach, the collaborative lawyers withdraw from the case and the parties then retain trial attorneys to pursue the matter in court.

Is collaborative divorce for everyone? I am a divorce litigator and people often come to me with complex, high conflict and/or high stakes cases so perhaps I am biased in that regard. Even still, I cannot see collaborative divorce being for everyone to be used in every case. Just as I wrote about my concerns about mediation, i.e. the possibility of a spouse taking advantage of an imbalance of power; the settle at all costs posture whether the resolution is fair to both parties or not; etc., I think that those pitfalls are just as possible in collaborative divorce.

For instance, I recently heard of a divorce case described as "freakish". At the same time, the husband was described as a "power broker" and the wife was a housewife with a young child. Most confusing was the revelation that the parties were involved in a "collaborative divorce."

To me, this sounded like a recipe for disaster. How can a "freakish" divorce be collaborative? If both parties are "power brokers" perhaps collaboration could work though it seems like both would want to "win." Collaboration seems unlikely when one party is a "power broker" and the other is not - capitulation seems more likely than collaboration. Ever wonder why the more powerful spouse wants to mediate?

Perhaps for a garden variety divorce with two reasonable people, this can work. In most other cases, it seems that the interests of the weaker party could be compromised. 

A REMINDER ABOUT THE ILLUSION OF "INNOCENT SPOUSE" RELIEF

As tax season is upon is, the issue of whether to file joint returns is upon us as well.  i previously blogged about the topic of innocent spouse relief and the fact that the innocent spouse form that the IRS has published for those seeking innocent spouse status has many traps for the unwary. 

Today, I read an interesting article by the accounting firm Smolin Lupin "Spouses are Guilty Until Proven Innocent - Tax Liability Shared by Both." 

The article reminds that you are generally liable for paying the tax due, plus interest and any penalties. Moreover, even if the income and/or unreporting is attributable to your spouse, since the filing of a joint return creates joins and several liability, your wages can be seized by the IRS.

The article further reminds that one may qualify for "innocent spouse" relief if that taxpayer can prove:

  • There is a substantial understatement of tax attributable to the grossly erroneous items of your spouse or ex-spouse.
  • The hidden income belonged to your ex-spouse and you didn't benefit from it.
  • You didn't know or have reason to know about the understatement.
  • It would be inequitable to hold you liable.

The article closes with the following excellent piece of advice:

Don't count on innocent spouse relief if you know your spouse is cheating. Consider filing separate tax returns -- especially if you're in the process of a divorce. It may save you a bundle in the future.
 

As noted in my prior entry on this topic, since the innocent spouse form has to be signed under penalty of perjury, a wrong answer not only could preclude granting of Innocent Spouse Relief, but also could be used to assert - if not prove - tax fraud given a person's knowledge and involvement when the returns were filed.  As such, the bottom line is that great care should be taken when completing this form. A person seeking to do so should consult with an attorney and tax advisor, in advance, so as to not incriminate themself.

BEYOND STATE LINES - THE EXPANSIVE REACH OF THE PREVENTION OF DOMESTIC VIOLENCE ACT

We have previously blogged about the broad protections attached to the New Jersey Prevention of Domestic Violence Act.  However, can a victim alleging domestic violence only having occurred in another State come into New Jersey and seek the Act's protections?  The short answer is - yes.  The question essentially becomes one of jurisdiction - do the New Jersey courts have the power to hear and rule on the subject matter of the case (the domestic violence alleged) as well as over the person alleged to be the aggressor?

Within recent years, the Supreme Court of New Jersey essentially established that it has jurisdiction over the acts of domestic violence itself (the subject matter) even if the only acts alleged to have occurred took place outside of New Jersey.  This appears to be the case even where the purported aggressor has done nothing to pursue the victim within the State's borders, including not showing up for any court hearing held in New Jersey with respect to the domestic violence allegations. 

The question of whether the court has power over the aggressor, however, is a bit trickier, as the victim must establish that the aggressor has established "minimum contacts" with the State of New Jersey from his or her own purposeful conduct - not solely the actions of the victim.  The aggressor must reasonably expect that, by his own actions, he could fairly be brought into a New Jersey court.  Thus, the victim's act of fleeing into New Jersey and alleging acts of domestic violence that occurred outside of the State is not enough to establish that New Jersey courts have personal jurisdiction over the alleged aggressor.

Despite the broad protections of the Act designed to provide aid to victims, these fundamental, constitutional notions of fairness cannot go ignored.  While the victim seeks the protections of New Jersey's law, he or she can also seek the protections of the law of the State where the alleged domestic violence occurred, without issue as to whether the court there has power over the aggressor.  This way, the victim is not left without protection and the aggressor is not essentially deemed to have "purposefully availed" him or herself of the rights and privileges of every state.

CHILD CUSTODY, ALIMONY & PRO SE LITIGANTS

The old adage is that “He who represents himself has a fool for a client.” Family law by nature is an emotional area of the law - custody, alimony, equitable distribution, visitation, child support – these things impact peoples’ lives. As a result, when a party disagrees with the decision by the trial court, they have the right to appeal. When the Appellate Division issues a published decision, that decision becomes binding on all trial courts in the State. Thus, family law is constantly changing and evolving. 

For instance, in a recent unpublished appellate decision, a pro se litigant appealed a post-judgment order relating to alimony and custody. In R.K.B. v. C.W.B., App. Div., decided February 8, 2010, Docket No. A-1613-08T1, a pro se defendant, CWB, appealed from an order that: 1) denied his request for a hearing on custody of the parties' son; 2) found defendant in violation of litigant's rights and ordered him to pay plaintiff the sum of $5,000 due as reimbursement alimony; 3) restrained him from discussing court proceedings with his son; and 4) directed him to pay $1,750 to plaintiff as attorney's fees. The Appellate Division affirmed the trial court decision, finding that the trial judge did not abuse his discretion. In addition, the Appellate Court noted that the defendant failed to present sufficient facts to justify a hearing on child custody.

This type of appeal is quite common in family law and like many others, the decision can provide insight and guidance on how to help clients litigate their cases in the future. For instance in R.K.B. v. C.W.B., CWB alleged that there was change of circumstance relating to custody of the parties child. CWB represented, among other things, that because it had been four years since the trial court had determined custody that there was a change of circumstance. The Appellate Division found that mere passage of time and change of the child’s age is not enough to find a change of circumstance or warrant a plenary hearing. (There is other case law out there that says the exact opposite with regard to child support.)

CWB also argued that his child wanted to live with him, as opposed to his mother.  Although this may have been true, the trial judge failed to entertain this argument because it was not something CWB could testify to because it could not be supported by “competent, credible evidence.” While the right to appeal exists for all litigants, knowing how to properly file and argue the legal issues in an appeal is an entirely different story.

Due Process vs. Final Restraining Order

The Prevention of Domestic Violence Act, NJSA 2C:25-17 to 35, is the law that governs domestic violence issues in New Jersey, including the issuance of Temporary Restraining Orders (“TROs”) and Final Restraining Orders (“FROs”). The Prevention of Domestic Violence Act was enacted to protect victims of domestic violence. Unfortunately, some individuals abuse the protections offered by the Domestic Violence Act and use it as a weapon in divorce proceedings. While many times the issuance of an FRO is appropriate, there are other times when it is clear that the Prevention of Domestic Violence Act has been abused.     

If a person is a victim of domestic violence, they can obtain a TRO by contacting the local police (at anytime) or going to the county courthouse (during business hours) and explaining the circumstances by which they have been abused. At that time a judge will determine if the facts warrant the issuance of the TRO. If the judge decides that the conduct is sufficient to warrant the TRO, the accused alleged abuser will be served with the TRO, which will order the individual not to contact the victim or anyone else that needs protecting, which may include children, family members, friends, etc. Once the TRO is issued, an FRO hearing is scheduled shortly thereafter.   The FRO hearing is before a Superior Court Judge and will be conducted at the county courthouse. At the FRO hearing, a judge will determine if an FRO is necessary to protect the alleged victim of the domestic violence or if the TRO was incorrectly issued and no FRO is necessary. While the TRO is usually issued ex parte or without any input from the alleged abuser, at the FRO hearing the alleged abuser has the opportunity to testify, call witnesses, present evidence, and most importantly be represented by an attorney.   

In a recent unpublished decision, M.C.B. v. Victoria Vartanian, decided February 5, 2010, Appellate Division, Victoria Vartanian allegedly harassed and threatened her ex-boyfriend M.C.B.     M.C.B. contacted the police and had a judge issue a TRO. The TRO was served upon Ms. Vartanian, but only one day before the FRO hearing. The following day, at the FRO hearing the judge failed to advise Ms. Vartanian that: (1) there were consequences associated with the issuance of the FRO; (2) she had the right to counsel; (3) had the right to seek an adjournment to find counsel; and (4) had the right to subpoena witnesses and generally prepare for the hearing. As a result, notwithstanding the trial judge granted the FRO, the Appellate Division ordered a new hearing because Ms. Vartanian was not afforded the minimum requirements of due process (a right guaranteed by the Constitution).   

Every individual has a right to protect their Constitutional rights, even when they are accused of domestic violence. While I am a staunch opponent of domestic violence, the issuance of an FRO can have long-lasting implications on the alleged abuser. If going to be issued, it should be after due process is granted.

ALL CASES HAVE A LIFE OF THEIR OWN - PART II

Almost two years ago, in fact, one of the first blog posts even on this blog, I authored a post entitled "All Cases Have a Life of their Own." I just finished a case this week that gave me reason to think about this post again. 

In this case, one party just didn't want to get a divorce.  It did not make a difference that the other spouse made clear in no uncertain terms that the divorce was going to happen.  In fact, because the spouse asked the other to reconcile every single day, knowing that it would upset the other spouse, that spouse heard every day that the marriage was over.  Even the children's therapist advised that that spouse should move out given the impact of that spouse's continued presence on the children, etc.  Nothing sunk in.  Eventually, the finality of the trial date, in fact on the trial date, did the matter finally settle, but not without several last ditch attempts not to proceed with the divorce.  The real shame is that substantial fees had to be incurred to prepare for trial - an unavoidable problem because one spouse held out hope for reconciliation until the bitter end.

I have another matter, where a spouse is refusing to make settlement proposal but is demanding a settlement conference.  It seems clear that the desire is to get the other spouse in a room to bully that spouse into a settlement or otherwise because there is the expectation that the other spouse will capitulate just as always occur ed during the marriage.

Some spouses refuses to provide discovery or comply with others, hoping to wear the other spouse down.

The bottom line is that hopefully the put upon spouse will stay strong and not fall prey to the other parties unreasonable if not bad faith conduct.  More importantly, hopeful the Court's will protect that party with a fair and generous award of counsel fees.

Hello Cohabitation. Goodbye Alimony.

What happens when a dependent spouse begins living with another partner? Well, in the recent unpublished decision of Hartelust v. Hartelust the Appellate Division reviewed this question. Docket No. A-2519-08T3, decided January 12, 2010. 

Plaintiff Nora Hartelust appealed from an August 1, 2008 Order that terminated Defendant Alexander Hartelust’s alimony obligation.   After twenty years of marriage the couple was divorced in January 2007. The judgment of divorce incorporated the property settlement agreement (PSA).   At the time, the couple had a fifteen year old child, Alexander was earning $60,000/year and Nora was earning $15,000 per year. The PSA stated that Alexander would pay $175 per week in child support, $220 per week in permanent alimony, and transfer his ownership in the marital home to Nora. The PSA did not address cohabitation.

In April of 2007, Alexander became aware that Nora was cohabitating in the former marital home with her boyfriend. Alexander immediately stopped paying alimony and in July 2007, three months later, filed a motion seeking termination of alimony.  After a plenary hearing where the parties, the boyfriend, and the couple’s son testified, the trial judge found that Nora was cohabitating with her boyfriend and was deriving an economic benefit. The judge ordered that Alexander stop paying alimony and awarded Alexander attorney’s fees. Nora appealed. On appeal the Appellate Division affirmed the termination of alimony because the trial judge had determined that based on credible testimony, Nora was cohabitating with her boyfriend and received an economic benefit from that cohabitation. The Appellate Division explained that once there is a prima facie showing of cohabitation, the burden of proof is shifted from the party seeking modification to the dependent spouse, who must show that he or she has not derived an economic benefit from the cohabitation. Nora could not overcome that burden.

Also on appeal was the award of attorney’s fees, which the Appellate Division reversed. The Appellate Division found that the judge failed to consider seven of the nine factors when determining if attorney’s fees were warranted. In this case the attorney failed to submit a Certification of Services, which impacted the Appellate Division's ruling. In order for attorney’s fees to be ordered, an attorney must submit a certification or affidavit of the services they provided.

 

While this matter is unpublished and therefore not binding, given the law of this state the outcome exemplifies the way the law was meant to be interpreted. Recently, virtually this very same issue was faced by a client and although the spouse admitted to cohabitation, the trial judge did not find that our client had met his prima facie burden and therefore, would not order a plenary hearing. While disappointing, this case further supports our belief that our client was entitled to this hearing, at the very least.

UNAMBIGUOUS LANGUAGE IN SETTLEMENT AGREEMENT CONTROLS OUTCOME

Oftentimes parties will sign an agreement settling all issues in their divorce matter only for one party to subsequently try to back away from those terms for any number of reasons.  Is it just that easy for a party to essentially change its mind?  The simple answer is generally no.  New Jersey has a strong public policy favoring the enforcement of fair and equitable agreements entered into on a consensual and voluntary basis.  If the agreement is somehow the product of fraud, unconscionable or otherwise demonstrates one party's effort to take advantage of the other, then the law provides the wronged party with an opportunity to "set aside" or "vacate" the agreement.  

What about those cases where there is no such wrongdoing?  Since marital settlement agreements are contracts and, as a result, generally enforced, Courts in this State will look to the terms of the agreement and apply basic contractual principles when addressing one party's claim as to the agreement's (or that provision's) enforceability.  For instance, where the agreement's language is unambiguous and the Court is called upon to interpret the terms at issue, the Court will not consider external (or "parol") evidence, such as, perhaps, oral discussions had at the time of the agreement's signing.  It will simply apply and interpret the terms before it.

This was the case in Dell'Osa v. Dell'Osa, a recent, unpublished (not precedential) Appellate Division decision where the husband claimed that the trial court improperly divided the parties' retirement accounts because his accounts were comprised of pre-tax funds while the wife's were comprised of after-tax funds.  The husband claimed that, as a result of this account structure, two Orders (known as Qualified Domestic Relations Orders or "QDROs") were needed to fairly divide the accounts, rather than just the Court dividing the accounts without such an Order to his claimed monetary disadvantage.

Affirming the trial court's decision, the Appellate Division found the settlement agreement language unambiguous as to this issue, finding that the agreement merely acknowledged the pre-tax and after-tax retirement contributions of the parties without requiring any equitable distribution to factor in a tax adjustment.  In its affirmance, the Appellate Division emphasized the notion that "A court may not make a better contract for either party than the one the parties drafted."  The Court also looked to other terms of the agreement in concluding that its interpretation of the unambiguous language was consistent with the terms of the agreement as a whole.

SUPREME COURT AFFIRMS KAY DECISION - ESTATE OF LITIGANT WHO DIES DURING DIVORCE CAN MAKE EQUITABLE CLAIMS

Previously, I blogged on the Appellate Division's reported (precedential) decision in Kay v. Kay.  The New Jersey Supreme Court granted Certification and the decision was rendered on January 6, 2010.  In a per curiam decision (i.e. no one specific Supreme Court Justice authored the opinion), the Appellate Division decision was affirmed for substantially the reasons set forth in Judge Grall's appellate opinion.

To reiterate what this case is about, the Appellate Division held that when the estate of a spouse who died while an action for divorce is pending presents a claim for equitable relief related to marital property, the court may not refuse to consider the equities arising from the facts of that case solely on the ground that the estate may not assert equitable claims against the marital estate sounding in constructive trust, resulting trust, quasicontract or unjust enrichment. In that case, the husband died basically penniless and the wife had assets in excess of $650,000 at the time.

The Appellate Division and now Supreme Court held that when the estate of a spouse who died while an action for divorce is pending presents a claim for equitable relief related to marital property, the court may not refuse to consider the equities arising from the facts of that case solely on the ground that the estate may not assert equitable claims against the marital estate sounding in constructive trust, resulting trust, quasicontract or unjust enrichment. This case rejects the holding in Krudzlo v. Krudzlo, a reported trial court opinion from 1990.

The basic rule was that a divorce case abates and no equitable distribution can be had when a spouse dies during the pendency of divorce. However, there is a Supreme Court case called Carr v. Carr that created equitable remedies for a surviving spouse that would otherwise get nothing where the assets were all held by the other spouse and the rights to equitable distribution and an elective share are unavailable under the law. This case provided a remedy for what was called the "black hole."

The Krudzlo case held that the estate of a dying spouse could not assert claims for equitable relief against a surviving spouse.

In Kay, there husband died. At the the time of his death, he had limited assets in his name, insufficient even to pay his legal fees and burial expenses. On the other hand, it was asserted that the wife had more than $650,000 in assets. It was also asserted that the wife dissipated marital assets, diverting them to her own name and her daughter.

Given that the court's seek fairness and equity, the Appellate Division held that it was inappropriate to have a blanket rule preventing the estate from making equitable claims. The Court did not decide the underlying merits of the claim, however. The estate will have the ability to make a claim to prevent the unjust enrichment of the surviving spouse.

The Supreme Court opinion added further important observations.  First,  the claim raised here was not only for equitable distribution, but also that marital assets had been wrongfully diverted from one spouse to the detriment of the other. Second, the spouse who died was attempting to pursue that claim before his death.  The estate was seeking to continue claims raised before death which "should not be extinguished lightly." 

Further, just as Carr dealt with the innocent spouse that had no statutory remedy, so does this decision - essentially closing the black hole as to the spouse who died.  Clearly, this case reflects and fair and equitable result and prevents an alleged wrongdoer from being unjustly enriched. 

GOLDMAN SAGA CONTINUES

One would have hoped that Sean Goldman's return to the United States with father David Goldman would have been the end of this years-long international saga.  Sadly, however, that may not be the case.  News reports yesterday indicated that 9-year old Sean's Brazilian family will fight to regain "custody" of Sean, which is interesting since the family's actions and that of the boy's now deceased ex-wife really constituted an international abduction, thus leading to the boy's ultimate Court-Ordered return. 

After the family previously indicated that the fight was over, lawyers for the family will push to have the Brazilian court hear the boy's wishes after all - indicating as much on the same day that the boy returned home to Tinton Falls, New Jersey, claiming that it was "our home" when seeing the house where he will live once again.  Since the Supreme Court in Brazil does not convene until February, it would not be able to hear the family's arguments before then.

How the Brazilian family's ongoing legal actions will impact their likely future claim for visitation is unclear, as even their decision to publicly parade Sean through the streets in Brazil on the way to the United States consulate on Christmas Eve has been roundly criticized and, according to David Goldman, was a traumatic experience for Sean.  The family, however, has substantial financial resources and will likely fight this losing battle, seemingly at the wishes of Sean's maternal grandmother, until there is no avenue untapped.  For an additional prior blog post on this topic regarding Sean's return, click here as well.  Stay tuned for further details.

EDITOR'S NOTE:  We have previously blogged on grandparent visitation on several occasions.  Grandparent visitation is difficult to obtain in New Jersey following the US Supreme Court's decision in Troxel v. Granville and the New Jersey Supreme Court's decision in Moriarty v. Bradt and the cases that followed it.  Given the constitutional protections of the rights of a parent to parent their child(ren) free from interference from third parties, grandparents now must prove actual harm to the child if they do not receive visitation.  While on one hand, the death of a parent (as was the case in Moriarty) would be a factor in the grandmother's visitation request here on one hand, the abduction and the history in this case may mitigate that factor.  Moreover, one wonders whether, despite the harm that may be able to be proved in this case, given the circumstances surrounding the child's alleged bond with the grandmother and step father, that visiitation with these people who were allegedly part of the ordeal that kept father and son apart for several years, would overcome the harm.  ERIC S. SOLOTOFF

THE NEW YEARS RESOLUTION DIVORCE

Over the years, I have noted that the number of new clients spikes a few times of the year, but most significantly right after the new year.  Out of curiosity, I typed "New Years Resolution Divorce" into Google and got 540,000 results in .29 seconds.  While not all of the search results were on point, many were extremely interesting.  It turns out that my intuition about this topic was right and that there are several reasons for it.

One article on Salon.com put divorce up there with weight loss on New Years resolution lists. Also cited in this article was that affairs are often discovered around the holidays.  Another article linked above attributed it to "new year, new life".  Another article claimed that the holidays create a lot of pressures at the end of the year that combine to put stress on people in unhappy or weak relationships.  Family, financial woes, etc. associated with the holidays add to the stress.  Turning over a new leaf to start over and improve ones life was another reason given.  This seems to be a logical explanation for a clearly difficult and perhaps heart wrenching decision.

In my experience, people with children often want to wait until after the holidays for the sake of the children.  There is also the hope, perhaps overly optimistic, that the divorce will be completed by the beginning of the next school year.  These people tend to be in the "improving ones life" camp. 

So as divorce lawyers, we hope to avoid or at least resolve in advance the holiday visitation disputes that inevitably crop up, then relax and enjoy the holiday as we await the busy season to begin. 

A PARENT'S OBLIGATION TO PAY FOR POST-HIGH SCHOOL EDUCATION

What payment obligation, if any, do divorced parents have towards their child's post-high school education?  The New Jersey Supreme Court concluded more than 25 years ago that a child's right to support includes a "necessary education" after high school, whether it be a vocational school or college.  However, a parent's obligation to pay for such schooling depends generally on the expectations and abilities of the parties involved to pay, as set forth in 12 different factors including:

1.  whether the parent, if still living with the child, would have contributed toward the costs of the requested higher education;

2.  the effect of the background, values and goals of the parent on the reasonableness of the expectation of the child for higher education;

3.  the amount of the contribution sought by the child for the cost of higher education;

4.  the ability of the parent to pay that cost;

5.  the relationship of the requested contribution to the kind of school or course of study sought by the child;

6.  the financial resources of both parents;

7.  the commitment to and aptitude of the child for the requested education;

8.  the financial resources of the child, including assets owned individually or held in custodianship or trust;

9.  the ability of the child to earn income during the school year or on vacation;

10.  the availability of financial aid in the form of college grants and loans;

11.  the child's relationship to the paying parent, including mutual affection and shared goals as well as responsiveness to parental advice and guidance; and

12.  the relationship of the education requested to any prior training and to the overall long-range goals of the child.

 

Notably, these factors contemplate that the parent or child seeking payment towards educational expenses will be made before the expenses are actually incurred.  The Appellate Division addressed this timing issue in the recent unreported (not precedential) decision of Gorman v. Cruz, where it reversedd a trial court's denial of a mother's application to compel payment by the father for the daughter's beauty school because the child failed to apply for school costs from the father until the costs had already been incurred and paid.

Reversing the trial court's decision, the Appellate Division noted that delay in seeking payment from the parent is only one factor for consideration and by no means warrants an automatic denial.  The father had already contributed to the cost of the school, demonstrating his approval, or at least acquiescence towards his daughter's decision to obtain her cosmetology education, as well as his ability and willingness to pay.  The Appellate Division also rejected the father's argument that he was only obligated to pay for college - not a "technical" school like beauty school - relying on a rational construction of the terms of the parents' matrimonial settlement agreement as to the children's education and its general purpose to support the children in pursuing their career goals. 

As this case demonstrates, a thorough review of the 12 factors above, as well as the timing of the payment request, is necessary to determine a parent's obligation to pay for post-high school education costs.   

SEAN GOLDMAN'S RETURN TO U.S. CLEARED BY BRAZIL'S SUPREME COURT

In the latest development in the ongoing international custody saga that has garnered the world's attention and involvement from the Obama Administration, the Brazilian Supreme Court has ordered the return of 9-year old Sean Goldman to the United States.  The Court specifically concluded that the child was to be given a say in whether he stays or returns to the United states with his father, David Goldman, a New Jersey resident.  This a few days after a federal appeals court ruled that the child must be returned to Mr. Goldman and also after a judge on the Supreme Court had then stayed the child's return.

For those not familiar with this years-long story that began dominating headlines and political attention within recent months, Mr. Goldman has been fighting to obtain Sean's return since 2004, at which time his former wife took Sean on what she indicated was a vacation to her native Brazil.  While in Brazil, the wife then divorced Mr. Goldman, stayed in Brazil and remarried, only to pass away in 2008 during child birth. 

Mr. Goldman deemed the act one of international child abduction and the United States has indicated that Brazil has failed to abide by the Hague Abduction Convention designed to address such international custody issues.   It was initially in 2004 that a New Jersey Superior Court held that the former wife's taking and keeping of Sean in Brazil was wrongful.  In 2005, a Brazilian court concluded that, while the former wife's actions were illegal under New Jersey law, the Hague treaty set forth that Sean could remain in Brazil if it could be established that he was settled there.

Earlier this year in June, a similar scenario unfolded where the Brazilian Supreme Court stayed the order of a federal judge to return Sean to Mr. Goldman.  Considering that Sean is only 9 years old, the Brazilian Supreme Court's decision to place such weight on where the boy wants to live is intriguing, only further heightening the attention associated with this matter.  News reports are indicating that the family in Brazil has and will file several more applications to delay the child's return yet again.  Stay tuned for further updates on this blog as they unfold.

MODIFICATION OF CHILD SUPPORT- WHEN TO FILE

Under New Jersey law, a party of a divorce can seek modification of an order for child support or alimony if there is a “change of circumstance” that affects the income or earning ability of one of the parties.  Lepis v. Lepis, 83 N.J. 139 (1980).  This proposition is one of the most common reasons for post-judgment motions in New Jersey Family law courts, especially in the current economy.  But in a recent unpublished New Jersey Appellate Division decision, Good v. Nedza, the Court affirmed a post-trial order, which did not permit a recalculation of child support or arrears because one of the parties failed to act on information they had obtained years earlier and had at the time when the parties entered a Consent Order for child support.

In Good, the parties were divorced in 2002.  At the time, Mr. Good was the primary provider and the wife, Ms. Nedza, was a homemaker.  The parties had three children.  They agreed that Mr. Good would pay child support and alimony, and they would share joint legal custody of the children with Ms. Nedza having primary residential custody.  Over the years circumstances changed.  By September 2005, all of the children were residing with Mr. Good and his child support obligation was terminated.  A Consent Order entered in January 2006 addressed Ms. Nedza’s child support obligation to Mr. Good.
 

In April 2008, Mr. Good filed an application with the court to increase child support payments based on an imputed income to Ms. Nedza of $85,000/year plus $25,000 in subsidized lifestyle (free apartment, Jaguar, vacations, etc.).  Mr. Good sought the payments to be retroactive to January 2006 because Ms. Nedza’s income was “erroneously” fixed at $25,000/year as a direct result of her misrepresentations in 2006.  Mr. Good also sought child support arrears retroactive to July 2004 based on Ms. Nedza’s misrepresentations. 

The judge found that Mr. Good’s motion was untimely under Rule 4:50-1, which allows orders to be vacated or modified if there is mistake, fraud, or newly discovered evidence.  But the motion must be filed within 1 year of the entry of the order pursuant to Court Rules.  In this case, the judge found not only that it was more than one year, but more importantly, that Mr. Good was aware of the alleged misrepresentations in 2006, prior to entering into the January 2006 Consent Order. Because Mr. Good was aware of the alleged misrepresentations in 2006, had taken discovery, had the opportunity for a plenary hearing, and then still entered into a Consent Order, he could not attempt to re-litigate an old issue.  The judge did order a recalculation of child support obligations as of January 2008 because there was a “change of circumstance” in the parties' income since January 2006, but would not assess arrears.

This case is a great example of what can occur if a party: (1) does not seek to enforce their rights in a timely manner; and (2) enters into a Consent Order prematurely.  It can be vital to act quickly when new information becomes available and not to settle on incomplete discovery.  Without knowing, future rights can be impacted.  This is not to say that where there is fraud or misrepresentation courts will not overturn or vacate prior decisions or Orders.  In those cases the burden of proof rests on the party making the allegations.  While many litigants are anxious to settle matters quickly or as cost efficiently as possible, sometimes rushing to do so can negatively affect your rights under the law.  Just as with most other things in life, having all the information is necessary to making an informed decision.
 

THE NEW YEARS RESOLUTION DIVORCE

Over the years, I have noted that the number of new clients spikes a few times of the year, but most significantly right after the new year.  Out of curiosity, I typed "New Years Resolution Divorce" into Google and got 540,000 results in .29 seconds.  While not all of the search results were on point, many were extremely interesting.  It turns out that my intuition about this topic was right and that there are several reasons for it.

One article on Salon.com put divorce up there with weight loss on New Years resolution lists. Also cited in this article was that affairs are often discovered around the holidays.  Another article linked above attributed it to "new year, new life".  Another article claimed that the holidays create a lot of pressures at the end of the year that combine to put stress on people in unhappy or weak relationships.  Family, financial woes, etc. associated with the holidays add to the stress.  Turning over a new leaf to start over and improve ones life was another reason given.  This seems to be a logical explanation for a clearly difficult and perhaps heart wrenching decision.

In my experience, people with children often want to wait until after the holidays for the sake of the children.  There is also the hope, perhaps overly optimistic, that the divorce will be completed by the beginning of the next school year.  These people tend to be in the "improving ones life" camp. 

So as divorce lawyers, we hope to avoid or at least resolve in advance the holiday visitation disputes that inevitably crop up, then relax and enjoy the holiday as we await the busy season to begin. 

 

 

Will California Ban Divorce? Will New Jersey ban Same -Sex Civil Unions?

If a California web designer gets his way - Til death do us part? – will mean just that. John Marcotte, who runs the comedy website Badmouth.net, is attempting to put a measure on next year’s ballot that will ban divorce in California. The effort is meant to be satirical. The thought process behind the idea is that if California can pass Proposition 8, which bans same-sex marriage, allegedly to protect the sanctity of marriage, than what prevents California from going one step further and banning divorce?   

So far Marcotte has not collected the 694,354 signatures necessary to put the proposition on the ballot, but with a grass-roots movement and use of the Internet, he may achieve his goal – although it would be highly unlikely to pass.  And even if it did pass, it would certainly be found unconstitutional if challenged in court. But the proposition does raise an interesting question – does the State have an interest in protecting the sanctity of marriage?

Often opponents of same-sex marriage cite the sanctity of marriage as the reason same-sex couples should not be allowed to marry. On December 14, 2006, the New Jersey Legislature passed the Civil Union Act, providing for civil unions, which was signed into law by Governor Jon Corzine on December 21, 2006 and came into effect on February 19, 2007. Same-sex couples who enter into a civil union are provided almost all of the rights granted to married couples under New Jersey state law. However, under the provisions of the federal Defense of Marriage Act or DOMA, same-sex couples in marriages, civil unions, or domestic partnerships do not have any right or entitlement to the 1,138 rights that a married couple has under federal law.  

In New Jersey, Governor Jon Corzine has stated that he would sign a bill legalizing same-sex marriage if it comes to his desk before he leaves office in January. While Governor-elect, Christopher Christie said he would support a New Jersey constitutional amendment, similar to Proposition 8, that would ban same-sex civil unions. 

In a study released on November 25, 2009 by Quinnipiac University, New Jersey voters now oppose a law that would allow same-sex couples to marry by a slim margin of 49 – 46%. This reverses the 49 - 43% support for same-sex marriage in an April 23, 2009 survey by the independent Quinnipiac University. The poll taken by the university shows some interesting trends in who are the strongest supporters of same-sex marriage: Women support same-sex marriage 53 – 41%, while men oppose it 57 – 38%; Democrats support same-sex marriage 60 – 34%; Independents support same-sex marriage 49 – 45%; Republicans are against same-sex marriage 69- 25%; White voters split 49 - 47 %, while African -American voters oppose the measure 61 - 28 %.

 

The legalization of same-sex marriages is certainly a heated debate with proponents on both sides. But does California’s satirical proposition to ban divorce change your opinion? Does the State have the right to regulate who gets married – or gets divorced? If the State can tell you who you can and can’t marry – why shouldn’t they be able to tell who you can and can’t divorce?  And will New Jersey’s next governor enact New Jersey’s own Proposition 8? Its obvious that from the West Coast all the way to here in New Jersey, the same-sex marriage debate will continue………….        

YET ANOTHER CELEBRITY DIVORCE - DODGER STYLE

Since they have been in the news a lot lately, I have bloged a lot recently on celebrity divorces, be it John & Kate, Stephanie Seymour or Jim Nantz.  That is why the article from Billy Witz that recently appeared in the New York Times about the divorce of Frank McCourt and Jamie McCourt, the owners of the Los Angeles Dodgers got my attention.

Both parties claim to own the team - though Frank claims to be the sole owner.  Both worked for the team until recently, when Jamie was fired.  As a sign of the war to come, Jamie's lawyers budgeted her legal fees for this matter to be $2 million.  Per the article, the central issue is as follows:

"The key legal issue is whether the Dodgers are considered the McCourts’ community property. Under California law, a couple’s assets are split 50-50 unless a written agreement states otherwise. Shortly after buying the Dodgers, the McCourts put the team in Frank’s name and all their property in Jamie’s name to protect the homes from potential creditors. One of her lawyers, Michael Kump, said they would challenge the validity of the postnuptial agreement.

If the agreement is not valid, Fisher said, the McCourts would probably be forced to sell, as John Moores did with the San Diego Padres when he divorced."
 

The result would probably be the same in New Jersey.  It seems pretty clear that when people divorce, the cannot remain in business together.  In fact, in the well known Borodinsky case, the Appellate Division held:

 It seems almost doctrinal that the elimination of the source of strife and friction is to be sought by the judge in devising the scheme of distribution, and the financial affairs of the parties should be separated as far as possible.  If the parties cannot get along as husband and wife, it is not likely that they will get along as business partners.

Obviously this is the case with the fighting McCourts.  We will pay close attention as to how this works out but until then, play ball.

PARENTAL ALIENATION SYNDROME - IS A DSM MENTAL DIAGNOSIS ON THE WAY?

We have blogged in the past about parental alienation and "Parental Alienation Syndrome."  There was an excellent article in US News and World Report on line posted on October 29, 2009.  To read the article, click here.  To view some of our prior posts on this topic, click here and here.

The article discusses a movement afoot to add "parental alienation" to the next addition of the DSM (ie. Diagnostic and Statistical Manual of Mental Disorders) published by the American Psychiatric Association.  The new edition is scheduled to be published in 2012. 

While there appears to be little debate on whether parental alienation in both subtle and not so subtle forms goes on, there is a debate as to whether it represents a mental illness.  On top of that, there is concern that certain opposition to visiting with a parent could either be age appropriate (eg. a teenager being oppositional) or otherwise justified.  The people of this view are concerned that making parental alienation a mental illness could be invoked by an abusive parent to gain visitation with a child that has good reason to oppose contact.

No matter where you stand on the debate as to whether parental alienation is a mental illness, it is clear that alienating behavior in whatever form, big or small, cannot be good for the children that are exposed to it.