NJSBA Family Law Section

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  • 1.  Net proceeds of marital residence

    Posted 07-26-2017 07:19 PM
    Esteemed colleagues:

    Does anyone have authority which I can use for deducting a spouse's post-complaint equity payments on a marital residence (i.e. portion of mortgage and HELOC payments which increase equity), from sales proceeds on said residence, for purposes of determining "net proceeds" of the sale? The other spouse has been out of the home since prior to the filing of the complaint and has not paid any child support, alimony, or any payment towards the "roof expenses" since filing of the complaint. There is no agreement on this point.

    Thanks!

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    C. Megan Oltman Esq.
    Princeton NJ
    (609) 924-2044
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  • 2.  RE: Net proceeds of marital residence

    Posted 07-27-2017 10:42 PM
    Megan -
    <x-tab>        </x-tab>I've asked same question, looking for specific authority. The theory is that the increase in equity from the time of the complaint is a post-complaint asset not subject to distribution, so Painter and Brandenburg (etc) are solid on that point. There's a number of unpublished appeals that address it and cite to published case law - https://scholar.google.com/scholar?start=10&q=principal+paydown+divorce&hl=en&scisbd=2&as_sdt=4,31 . It appears that a number of those cases were handled by members of this list, perhaps someone could share the relevant section with arguments from an appellate brief?
    <x-tab>        </x-tab>I've litigated the issue and it's very discretionary (as the opinions affirm). More so than an increase in a savings account, it depends on the overall equities.
    <x-tab>        </x-tab>Hope this helps.



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    David Perry Davis, Esq.
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       www.FamilyLawNJ.pro
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    112 West Franklin Avenue
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    Voice: 609-737-2222
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