NJSBA Family Law Section

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  • 1.  Quitclaim Deed and ED

    Posted 03-11-2013 04:21 PM

    Does the transfer by quitclaim deed from one spouse to the other effectively waive equitable distribution in that property?

    34 year marriage.  H and W separated about 11 years ago (2001). H paid W support until about 2006.

    In 2004, H signed a quitclaim deed to W so that she could refinance the home, take money out for repairs, and pay a lien on the property. The lien was from H and sons' family business ($35k). After the refi, H undertook the repairs himself, and other than plumbing and electrical work, which required permits, he did all the work and acted as GC.

    After 2006, both parties paid for their own expenses, except that W kept H on her insurance (she's a school teacher).

    W files for divorce. H asks for ED of house and W's pension. W says H waived any interest in the house when he signed the quitclaim deed and refuses to give "a dime". H is willing to reduce his interest by any principle pay down or some other method, to reduce his interest. W is unwilling to move off $0. The judge wants to know what the legal authority is for saying that H is entitled to ED.  I rely on Painter, Brandenburg, and ED Statute re marriage end date and the proposition that there is no agreement unless it's written or oral with a complete transfer of all assets.

    The Judge was not impressed, and wants to know why the quitclaim deed, that contains a 3B:28-3 (right of joint possession) waiver would not apply to H's ED interest. I have not found any case on point. Does anyone have any advice? 

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    Stephanie Hunnell Esq.
    Belmar NJ
    (732)749-3500

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  • 2.  RE:Quitclaim Deed and ED

    Posted 03-11-2013 08:30 PM
    I can't wait to hear what others in our group have to say but I think when husband signed the Quit Claim he took the realty out of the ED equation.  Another point is that H sat on his hands for 11 years; repose, laches anyone?

     " the proposition that there is no agreement unless it's written or oral with a complete transfer of all assets."  Is not the quitclaim a written agreement.  Didn't H receive $35,000 in exchange for his interest in the Realty?
    Also, hasn't he been receiving a benefit of health insurance because his wife didn't legally divorce him?

    I think H shot himself in the foot more than once.  If I was representing the wife, I would be arguing that the marriage ended for all intents and purposes when they separated.  And if your counting the 11 years as part of the 34 years, I'd be boo hooing you.  There has been no marriage since the date of separation regardless of the case law that says the marital estate ends as of the date of the divorce petition being filed.  

    They both sat on their hands but both parties should be left with the deal they made which was, effectively:  an exchange of  his interest in the realty for payment of the $35K and 11 years of health insurance.

    I think he's just ticked because he found out how much health insurance  will cost him if he isn't 65 and eligible for medicare.

    Just my thoughts.

    Marianne


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    Marianne Auriemma Esq.
    Maywood NJ
    (201)712-9663

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  • 3.  RE:Quitclaim Deed and ED

    Posted 03-11-2013 11:11 PM
    Unless the parties (1) divided ALL of the property at the time of the quit claim deed, or even after, signifying an intent to be done with E.D., or (2) executed a partial MSA stating that E.D. of the real estate was complete, or (3) executed a complete MSA, then I think your Judge is wrong.

    Parties often attend to ambiguous financial matters mid-separation.  They refinance the house and one of the parties gets the cash.  One party buys a piece of real estate titled in one name but using joint funds for the down payment.

    IMO, this was not a final act of E.D., nor was it accompanied by a sufficient showing of intent.

    Interparty property transfers remain subject to equitable distribution.

    Having said that, the Husband acted like a fool for not preserving his house interest more overtly. 

    Hanan

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

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  • 4.  RE:Quitclaim Deed and ED

    Posted 03-12-2013 11:37 AM
    I couldn't agree more. Foolish. But we see it all the time, two parties thinking what they are doing makes sense at the time, and then realizing oopsy. (my technical term). 

    Thanks Marianne I like hearing both sides. I really want to make sure I can help my client make the best decision and hopefully settlement. 
    But, i really don't think he received any consideration from the $35k, it was family business debt that was owed by the parties. So, they used their own asset to pay off their own debt. If the company existed today, I know she would be asking for a piece of it.

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    Stephanie Hunnell Esq.
    Belmar NJ
    (732)749-3500

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  • 5.  RE:Quitclaim Deed and ED

    Posted 03-12-2013 03:28 PM

    I agree with Marianne.  I cannot think of any caselaw that suports H in his position.
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    Carol Weil Esq.
    Laurel Springs NJ
    (856)232-3800

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