NJSBA Family Law Section

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  • 1.  Monetary Gifts and Pendente Lite Support

    Posted 06-05-2014 12:39 PM
    Hello All:
    Have a case where one spouse's parent gifted substantial amounts of money to BOTH parties throughout the marriage on a routine basis...to the point where it was expected and they considered it part of their annual income. This money was spent, put into accounts, etc. and there remains a significant amount of savings from these gifts...albeit only in one parties' name now. Is there a case(s) on point that would support that, pendente lite, the spouse whose parent gifted the money and who now holds the money, must continue to support the other spouse pendente lite using those gifted funds, as was done during the marriage? Thanks for your insight!

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    Andrew Economos Esq.
    Monroe Township NJ
    (609)655-8887
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  • 2.  RE: Monetary Gifts and Pendente Lite Support

    Posted 06-05-2014 12:54 PM

    Andrew,

    There is a case from about two years ago, NJSC, in which the Court refused to require a Trustee in a discretionary trust to fund a party, despite the fact that historically the Trustee did so annually.  Someone else will tell you the name, I'm sure.  The Court said, however, that the fact of funding meant the Wife's need for alimony support was reduced.  That's your case, Sir.

    Hanan



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    Hanan Isaacs Esq.
    Kingston NJ
    (609)683-7400
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  • 3.  RE: Monetary Gifts and Pendente Lite Support

    Posted 06-05-2014 01:16 PM
    Tannen v. Tannen?


    On Thu, Jun 5, 2014 at 12:54 PM, Hanan Isaacs via New Jersey State Bar Association



    --
    James J. Moloughney, Esq.
     
    Certified by the Supreme Court of
    NJ as a Matrimonial Law Attorney
     
    Law Offices of James J. Moloughney, LLC
    17 E. High St.
    Somerville, NJ 08876
    908-300-8700
    908-300-8702 fax
     






  • 4.  RE: Monetary Gifts and Pendente Lite Support

    Posted 06-05-2014 02:28 PM
    Exactly the one.

    HMI

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    Hanan Isaacs Esq.
    Kingston NJ
    (609)683-7400
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  • 5.  RE: Monetary Gifts and Pendente Lite Support

    Posted 06-05-2014 05:13 PM
    Not exactly. This situation arises rather frequently in one form or another. Grandparents paying tuition for their grandchildren's parochial school tuition; in-laws helping to cover the crushing costs of their child-in-laws student loans (since they wanted to help the overall family picture); in-laws helping their child and spouse with extra costs associated with one leaving the workforce to raise kids; contributing regularly to help with the costs of buying, improving or maintaining a home; etc. The list is pretty much left to the imagination.

    These funds were gifts to both parties; joint marital assets, no matter how you look at it. If they are savings, even if corralled-up by just the son of the gifting in-laws. They are now free to be used for PL support, just like any other marital asset. The status quo (with is by no means the actual legal standard for PL relief, which is actually "fit, reasonable and just) was propelled by those payments, which the residuum of which are now savings.

    Hughes could be a fun re-read for you going forward beyond pendent lite, but the subsidized life style aspects of that case are extremely fact sensitive. Tannen in another case that is an interesting read, however, IMO, distinguishable from what you describe here because in Tannen, we are talking about a periodic release trust device.

    Try to look at your situation from multiple standpoints, particularly PL,  but by no means rigidly or formulaically so. Thanks.




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    Curtis Romanowski Esq.
    Senior Attorney - Proprietor
    Metuchen NJ
    (732)603-8585
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  • 6.  RE: Monetary Gifts and Pendente Lite Support

    Posted 06-06-2014 01:56 PM

    Many,many years ago with exactly same facts plaintiff wife's attorney moved successfully to join father as indispensible party to the divorce action. You might consider it

     






  • 7.  RE: Monetary Gifts and Pendente Lite Support

    Posted 06-06-2014 02:06 PM
    You also may want to argue that the gifts must be imputed to them as income.  That application was granted for me in NY - can't see NJ taking a different perspective. 





  • 8.  RE: Monetary Gifts and Pendente Lite Support

    Posted 06-08-2014 06:15 AM
    I've already replied with a purely legal perspective. That being said, while I can understand placing the parties in a position of having to deal with an enhanced standard of living resulting from consistent gifting from a beneficent parent, to join this generous parent in order to continue to pick his pocket beyond the marital grave just doesn't sound right. Really... How low can one go. Detrimental reliance? Really?

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