NJSBA Family Law Section

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  • 1.  2010 Palimony Amendment and Purchase of Home

    Posted 11-21-2013 06:07 PM

    Hello Listmates:  

    Client and fiancé were looking to purchase a home together.  Client's credit was not the greatest but fiancés was a bit better.  For some time they enhanced her credit and were able to get the financing to buy the home in her name.  She is the only one on mortgage and deed.  Client wrote check in the amount of $85,000 to his fiancé and in the memo section noted "our house."  Also signed a gift letter to the mortgage company in the amount of $5,000 for a total of $90,000 down.  Home purchased in September 2010 and the parties broke up this past summer.   

    Adversary contends that the amendment to the palimony statute in January 2010 bars my client from receiving any funds from the home since any agreement between them would have needed to be in writing with the independent advice of counsel.  Statute states the following: 

    N.J.S.A. 25:1-5

    No action shall be brought upon any of the following agreements or promises, un­less the agreement or promise, upon which such action shall be brought or some memoran­dum or note thereof, shall be in writing, and signed by the par­ty to be charged therewith, or by some other person thereunto by him lawfully authorized:

    h. A promise by one party to a non-marital personal rela­tionship to provide support or other consideration for the other party, either during the course of such relationship or after its termination. For the purposes of this subsection, no such written promise is binding unless it was made with the independent advice of counsel for both parties.  

    Client will eat the $5,000 and concede that it was a gift.  As to the $85,000, any suggestions would be greatly appreciated as there is not much case law on the issue and the "other consideration" clause above is quite troubling.

     

    TIA,

     

    Eric 



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    Eric Hannum Esq.
    Jackson NJ
    (732)370-9596

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  • 2.  RE:2010 Palimony Amendment and Purchase of Home

    Posted 11-21-2013 06:20 PM
    My thoughts are this is not really a palimony issue or family part issue at all, but rather a litigation action that should be filed in the Equity Part.  Thr relief sought should be to compel the transfer of title into your client's name along with that of the ex-girlfriend.  Causes of action I can think of off the top of my head that should be applicable are breach of contract, unjust enrichment, fraud, and promissory estoppel. 

    I had a case a few years back where in-laws had agreed to gift a parcel of land to my client and his wife.  They used this land to then construct a home on the land and lived there with their children for over 15 years.  The deed to the property was never transferred to the parties' names and remained in the grandparents names the entire time (despite the parties financing the construction of the home and paying all the taxes, etc.).  when the parties divorced, the wife and her parents conveniently claimed the husband had no rights to the property ad the deed was never transferred.

    I ultimately filed a separate action against the In-laws in the equity part which allowed my client to obtain his interest in the property (through a settlement).

    If you would like a copy of the Complaint, send me an email.  Good luck.

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    Blake Rush Esq.
    Easton PA
    (610)258-4003

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  • 3.  RE:2010 Palimony Amendment and Purchase of Home

    Posted 11-21-2013 11:58 PM
    Yeah, Eric.... "what they said."  I agree 100%.  This has nada to do with palimony and the statute doesn't affect it at all.

    It would perhaps be a creative move for your adversary to try to defend it that way, but.... No.  That dog don't hunt.

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    - Dave

    David Perry Davis, Esq.
    112 West Franklin Avenue
    Pennington, NJ 08534
    Voice: 609-737-2222
    Fax: 609-737-3222
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  • 4.  RE:2010 Palimony Amendment and Purchase of Home

    Posted 11-21-2013 06:25 PM
    The Palimony statute does not apply. Your client is not asking for support but the money from the real estate. it is an equity action for partitian and other equitable remedies. you can file in family or general equity part. ------------------------------------------- [Alice M. Plastoris, Esq. Law Office of Alice M. Plastoris 82 Speedwell Avenue Morristown, NJ 07960 973-538-7070 e-mail: [email protected] or [email protected] -------------------------------------------


  • 5.  RE:2010 Palimony Amendment and Purchase of Home

    Posted 11-21-2013 07:04 PM
    Eric,

    There is a Statute of Frauds issue, but it can be overcome by proof of performance.  A check from your client bearing a memo of "our house" and traced through to the purchase should be sufficient.

    I think your client should get his money back,  Let's call it a loan.

    Hanan

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    Hanan Isaacs Esq.
    Kingston NJ
    (609)683-7400

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  • 6.  RE:2010 Palimony Amendment and Purchase of Home

    Posted 11-21-2013 07:00 PM
    Eric:

    I agree with Alice and Blake.  This is not a palimony claim.  Support for life pursuant to an oral agreement (no longer enforceable) is not being sought.  Rather this is a dispute over ownership of real property acquired in one party's name but with funds provided by the another.  That is not to say that the statute of frauds will not be raised in defense of your client's claims but rather that the anti-palimony provision of the statute of frauds has nothing to do with your client's claims.  He may have a claim for an equitable lien or an equitable mortgage, for detrimental reliance, etc.  You had better brief the evidentiary issues that likely will be raised in defense of your client's claims.  BTW:  The action should be brought in the Family Part due to the family-type nature of the relationship of the parties.  See R. 5:1-2.

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    Gary L. Borger, Esquire
    BorgerMatez
    1415 Marlton Pike East, Suite 305
    Cherry Hill, NJ 08034-2210
    (856) 424-3444
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  • 7.  RE:2010 Palimony Amendment and Purchase of Home

    Posted 11-21-2013 07:30 PM
    I agree entirely with Gary.

    BTW, you should immediately file a lis pendens with the County Clerk so that your client's lien comes up of record.  This will forestall the ex girlfriend from selling or further mortgaging the property.

    Hanan

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    Hanan Isaacs Esq.
    Kingston NJ
    (609)683-7400

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  • 8.  RE:2010 Palimony Amendment and Purchase of Home

    Posted 11-21-2013 11:18 PM
    EH... Not a palimony claim. General Equity Partition c/a. Related to family-type scenario, so to can attempt to file in FP. Depending on the vicinage, this might lead to a few false starts, with it bouncing back. You would do well to file it personally to avoid aggravation. You would be ideally using FP case law having to do with house purchased in anticipation of marriage, however inchoate, due to failure to ultimately marry. This shouldn't change the outcome. I have had and tried this case successfully. Only difference is there was also a child. Predecessor attorney started it in General Equity, and then it was transferred to FP. I argued at that point, with brief, that it was not really a partitioning action and judge agreed. I would send you the brief, but the case was so old that file has been purged. Good luck. I think you have a winner (vs. Winer, if we were talking about an engagement ring).

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    Curtis Romanowski Esq.
    Senior Attorney - Proprietor
    Brielle NJ
    (732)603-8585

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