NJSBA Family Law Section

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  • 1.  Alimony Arrears via DRO

    Posted 03-15-2018 05:33 PM
    Hi Listmates,

    I searched the archive and couldn't find much, if any, information on whether or not there is case law to support the use of a DRO to pay alimony arrears.  My client's ex-husband has about $180K in an IRA and refuses to pay $48K in alimony and child support arrears.  The last time we were in Court, the Judge stated that she knew she had the power to sign a DRO for child support arrears, but didn't know about spousal support.

    Thanks in advance,

    Henry
    [email protected]

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    Henry Weinfeld Esq.
    Woodbury NJ
    (856)845-7851
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  • 2.  RE: Alimony Arrears via DRO

    Posted 03-15-2018 05:39 PM

    Yes, I have collected alimony arrears via a DRO before.  See 29 U.S.C. § 206(d)(3)(B) (The term "domestic relations order" is defined to mean any order that "relates to the provision of child support, alimony payments or marital property rights to a spouse, former spouse, child or other dependent of a participant"). 

     

    _____________________________________

    Brian G. Paul, Esq.

    Certified Matrimonial Law Attorney

    Szaferman, Lakind, Blumstein & Blader, P.C.

    101 Grovers Mill Road

    Lawrenceville, New Jersey  08648

    Phone:  609-275-0400

    Direct Fax:  609-779-6065

    [email protected]

     

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  • 3.  RE: Alimony Arrears via DRO

    Posted 03-15-2018 05:42 PM

    Sorry, you asked for case law.  See Judge Krafte's decision in Mallory v. Mallory, 179 N.J. Super. 556 (Ch. Div. 1981).

     

    _____________________________________

    Brian G. Paul, Esq.

    Certified Matrimonial Law Attorney

    Szaferman, Lakind, Blumstein & Blader, P.C.

    101 Grovers Mill Road

    Lawrenceville, New Jersey  08648

    Phone:  609-275-0400

    Direct Fax:  609-779-6065

    [email protected]

     

    40th Logo for email sigs

     

     






  • 4.  RE: Alimony Arrears via DRO

    Posted 03-15-2018 07:01 PM
    I searched the archive and couldn't find much, if any, information on whether or not there is case law to support the use of a DRO to pay alimony arrears.  My client's ex-husband has about $180K in an IRA and refuses to pay $48K in alimony and child support arrears.  The last time we were in Court, the Judge stated that she knew she had the power to sign a DRO for child support arrears, but didn't know about spousal support.


    Just remember, unless that's a Roth IRA, it's not a dollar-for-dollar trade-off - it's pre-tax money in an IRA. If he owes $48K in arrears, you'll need to adjust it for taxes (for example, at a 28% tax bracket, 40,000 x 1.28 = $61,440). Also might have an argument to adjust it up further since she doesn't get immediate use of the funds without paying the 10% penalty. How much of an adjustment? Don't know.



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    David Perry Davis, Esq.
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