NJSBA Family Law Section

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  • 1.  High e.d. wiped out by real estate loss

    Posted 01-10-2019 03:58 PM
    Esteemed colleagues:

    Husband has significant income ($400K+) and the parties live fairly frugally, putting a decent amount into savings / retirement accounts.
    In 2006, two years before the marriage, Husband makes a significant investment in real estate in Wyoming. The increase in value was tremendous... and then came 2008. Crash.
    It's now a huge loss (hundreds of thousands). The value of the property hasn't come back up like most of the rest of the market and experts say it probably never will.
    The loss (measured from date of marriage through either date of complaint or through today) is in fact so huge that it would wipe out essentially all the other gains to the marital estate.

    Has anyone had this scenario? Is it a case of "tough luck" for equitable distribution purposes? I know it doesn't have to be 50/50, and perhaps more of the loss would be allocated to him since he's keeping the property, but is anyone aware of case law addressing a similar scenario?

    Thanks,


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    David Perry Davis, Esq.
    ----------------------------------------------------
    www.FamilyLawNJ.pro
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    57 Hamilton Avenue -- Suite 301
    Hopewell, NJ 08525
    Voice: 609-466-1222
    Fax: 609-466-1223



  • 2.  RE: High e.d. wiped out by real estate loss

    Posted 01-10-2019 05:08 PM

    Negative Equitable Distribution?

     

    Charles F. Vuotto, Jr., Esq.

    Starr, Gern, Davison & Rubin, P.C.

    Certified by the Supreme Court of New Jersey as a Matrimonial Law Attorney

    Fellow of the American Academy of Matrimonial Lawyers

    Certified by the American Academy of Matrimonial Lawyers as an Arbitrator

    Qualified by the Supreme Court of New Jersey as an Economic Mediator

    2016 Tischler Award Winner given by the NJSBA

    for Lifetime Achievement in Family Law

    105 Eisenhower Parkway, Suite 401

    Roseland, NJ  07068

    Tel. 973-403-9200, Ext. 246

    Fax 973-364-1403

    Email: [email protected] 

    Website: www.starrgern.com

    Website: www.vuotto.com

     




    Original Message


  • 3.  RE: High e.d. wiped out by real estate loss

    Posted 01-10-2019 05:11 PM
    I must be missing something, Dave.  If husband bought property 2 years prior to marriage, it is his premarital asset/his loss/his debt, right?
    If it is a passive premarital asset, how does the wife share in that loss?  She would be entitled to her share of the marital estate (the savings, retirement accounts) but the husband would solely take the hit for whatever his premarital assets lost during the marriage.  

    Lisa M. Radell, Esq.
    207 South Main Street
    Cape May Court House, NJ 08210
    (609) 465-9910 (Tel)
    (609) 465-9920 (Fax)
     



    Original Message