Mandatory Post-ESP Mediation

If your case does not settle at Early Settlement Panel, you are required to attend a mediation session with a mediator, either from the approved list of mediators or any other mediator. If you choose a mediator from the approved list, the first two hours are free. The first hour is used by the mediator to read and analyze the issues in your case from your attorney’s submission, and the second hour is an in-person meeting with both parties and the mediator. Anything beyond two hours is paid for by the parties.

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Early Settlement Program (ESP) in Divorce Cases

Due to the inordinate time, expense, and lack of judicial resources available for divorce cases, the New Jersey Courts have implemented settlement alternatives to court proceedings.

One of these is the Early Settlement Program (ESP) which helps parties in a divorce reach a settlement in advance of a distant court date.  Represented by attorneys, the parties appear before two Panelists who are experienced matrimonial attorneys.

ESP Process

  1. Prior to the ESP date, each party’s attorney will deliver to the panelists his/her client’s written settlement position related to financial issues, along with a Case Information Statement.
  2. On the ESP date, the attorneys will meet with the Panelists in a conference room at the Courthouse, argue the positions, and answer any questions from the Panelists.
  3. The Panelists will then discuss the case amongst themselves, arrive at a recommendation for settlement, and share that recommendation with the attorneys and the parties.

The panel result is only a recommendation and does not have to be accepted. However, because it is the opinion of two experienced matrimonial attorneys in the applicable judicial precinct, the recommendation should be carefully considered—after many more months and expense the parties could see the same result in court. Even if the parties do not accept the full recommendation of the ESP panel, they should at least view it as the basis for further negotiation on the remaining outstanding issues.

If you are considering an ESP to settle your divorce case prior to trial, you should seek out experienced legal counsel familiar with the process. You have the right to be represented by an attorney in these proceedings and it is in your best interest to do so. The issues being addressed are sensitive and complex, and they require a comprehensive knowledge and understanding of family law in order to achieve a successful outcome.

Loss of Employment and Alimony

New Jersey’s recently enacted alimony statute deals with modification of alimony in the event the payor loses his/her job through no fault of their own.

Even though this law allows a payor to seek modification once the payor has been without employment for 90 days, there is not an automatic termination or reduction. The Court must consider many factors which are set forth in the statute, which include but are not limited to:

  1. The reasons for the loss of income;
  2. The payor’s efforts to replace his or her employment or find alternative employment;
  3. The payor’s health and how it affects his or her ability to obtain employment; and,
  4. Any severance award received from the previous employer.

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Sale of a Marital Home in Divorce – The Many Issues Involved

Many times the marital home is one of the biggest assets in a divorce case. While there are only three options in how to deal with the marital home, each option raises questions.

Option 1: One of the parties buys out the other party’s interest in said home. Some of the questions that must be discussed are:

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How to Prepare for Divorce Financially

As I always tell my clients, knowledge is power. Although getting a divorce can be devastating, frightening, and unsettling, there are ways you can take control to put yourself in a better position. Here are a few things you should keep in mind as you begin to plan for your divorce:

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When Does Child Support Begin?

There are many rules in our court system pertaining to the filing of pleadings. In order to start a divorce case in court, a Complaint for Divorce must be filed. The date the complaint is marked “filed” is generally the date we use for valuing assets and debts subject to equitable distribution. In order to obtain court-ordered relief during the pendency of a divorce case with regard to temporary child support, alimony, or other issues, a motion must be filed requesting such relief. Generally, relief is granted as of the date that the motion was filed.

In some cases we choose not to file a complaint right away, with the hope of settling the case prior to getting involved in litigation in the court system. In other cases, we may file a Complaint for Divorce in order to establish the cut-off date for equitable distribution, but our goal may be to stay out of court and try to settle the case without court intervention.

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Appeals of Family Court Judgments

For those unaware, after a Lower Court makes a final decision in a family court case, either party has a right to appeal that decision to the Appellate Court. A Notice of Appeal must be filed, along with any other relevant documents, within 45 days of the date of the entry of the Judgment.

The Appeal is based on the record and no new information is to be transmitted to the Appellate Division, and no testimony will be heard. The Appellate judges will review the underlying Order or Judgment, the transcript of the proceeding in the Lower Court (a typewritten volume which includes everything that was said in the courtroom by the attorneys, parties, other witnesses, and the judge), and the briefs submitted by the attorneys in the case arguing their client’s positions.

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Court May Force Sale of House Post-Divorce

Many issues arise after a Final Judgment of Divorce has been entered. One particularly prevalent issue in many cases has to do with the marital home. One party may wish to buy out the other party’s interest in said home, or trade it off against another asset. However, it is not always that easy.

Generally, both parties’ names are on the mortgage by the time of the divorce. The spouse who is taking over the home must refinance the mortgage to get the other spouse’s name removed. If this isn’t done in a timely manner, the spouse who has moved out may not be able to purchase another home because he/she is still obligated to the mortgage of the marital home. Non-payment on the mortgage may also affect the non-resident spouse’s credit rating.

In the recent case of L.H. v. D.H., the wife remained in the marital home, but failed to take steps to refinance the mortgage pursuant to their agreement. She was also late in making some of her mortgage payments, which affected the ex-husband’s credit.

The ex-husband filed a motion in court to deal with this problem. The judge was very concerned that that the ex-husband’s credit rating was being negatively affected, stating “this court takes judicial notice, as a matter of indisputable common knowledge, that a positive credit rating and score is one of the most valuable and important assets a party may presently possess.”

The court granted the ex-husband’s motion, and ordered that the house be sold in order to pay off the mortgage. The parties had 30 days to agree on a realtor, and if they were unable to agree, the court would appoint a realtor. If the ex-wife refused to sign the listing agreement, the ex-husband was given a limited power of attorney to sign on her behalf. While the house was listed, the ex-wife was ordered to maintain it and make all mortgage, tax, and insurance payments in a timely manner. However, if the ex-wife failed to cooperate or tried to block the sale, the judge said he would consider removing her from the house.

Issues that arise after a Final Judgment of Divorce can be tricky. It is for this reason that we recommend that you consult with experienced legal counsel immediately to discuss the issues of your situation.

Does Equitable Distribution of a Pension Allow for Termination of Alimony Upon Retirement?

It has long been held that in order to equitably distribute a State pension (or other defined benefit pension), you apply a percentage of the coverture fraction to determine what the non-employed spouse shall receive upon the employed spouse’s retirement. The coverture fraction is determined with the numerator being the number of years and months the spouse was employed during the marriage, and the denominator is the number of years and months that the spouse is employed in total. Then, the equitable distribution percentage is applied to that fraction.

For example, if the Husband worked for the State of New Jersey during the marriage for 11 years, but works an additional 25 years after the marriage, the numerator would be 11 and the denominator would be 36 (11+ 25). If the ex-Wife is entitled to 50% of this fraction, she would be entitled to 15% (11/36 x 50%) of the Husband’s ultimate monthly pension benefit upon retirement.

A question has arisen in the case of Krupinski v. Krupinski as to whether the ex-Husband still has to pay alimony once he retires and his ex-Wife starts receiving her portion of his pension. Under the facts of this case, the Husband was earning $46,000 at the date of the divorce and was obligated to pay the Wife $100 per week in alimony. Twenty years later, when the Husband retired, he was earning over $132,000 based on his further education and experience over those post-marital years. His monthly pension benefit is based on his highest three years of salary which came well after the divorce. As a result of applying the coverture fraction, the ex-Wife was entitled to $1,871 per month from the ex-Husband’s pension. The Husband applied to the court to terminate his alimony obligation, and the lower court denied his application, stating that he had to continue to pay the alimony.

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New Jersey Palimony Agreements Revisited

Palimony agreements are entered into between two parties who are not married, wherein one party promises to financially support the other party during his/her lifetime. Most palimony agreements are oral. On January 18, 2010, there was an amendment enacted to the Statute of Frauds which required palimony agreements to be in writing. The question that arose thereafter was whether oral palimony agreements entered into prior to January 18, 2010 were enforceable, even if one of the parties sought enforcement after January 18, 2010.

The Supreme Court of New Jersey, in Maeker v. Ross, determined that oral palimony agreements entered into prior to January 18, 2010 may be enforceable, despite the amendment to a law requiring that palimony agreements must be in writing.

In October, 2014, one month after the Supreme Court’s decision in Maeker, the New Jersey Senate introduced a bill to give retroactive effect to the palimony statute requiring a writing. Said law would give the parties one year from the enactment of the statute to put their palimony agreement in writing.

Stay tuned for information regarding this bill.

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