New Jersey Family Law

CRESSKILL BERGEN COUNTY NEW JERSEY DIVORCE BANKRUPTCY MEDIATION

In their New Jersey divorce agreement, the parties agreed that he would pay her $36,500, which was characterized in the orders as "child support," but actually represented credit card balances. She had to pay these in full, after he filed a bankruptcy petition. The court rejects his contention that, because she was listed in his bankruptcy petition as a creditor, he should be relieved from any obligation to reimburse her.      Molinari v. Molinari, New Jersey App. Div., April 10, 2008

SECAUCUS NEW JERSEY HUDSON COUNTY DIVORCE LAWYER

The daughter admitted to misappropriating $400, 000 from her mother while managing her affairs. This was properly held to be a non-dischargeable debt of the mother's Estate, pursuant to Section 523(a)(4) of the Bankruptcy Code. There is no issue of material fact as to that section's requirement of defalcation while acting in a fiduciary capacity. Moreover, the daughter's prior statements in her answer to the adversary complaint – that she was her mother's fiduciary, and admitting to the defalcation – constitute a judicial admission and is binding on her throughout the litigation. Further, she failed to provide any support against the finding of defalcation. Finally, even if she had failed to admit she was her mother's fiduciary, or denied she committed the defalcation, the court would still have reached the same conclusions.   In Re Wolke, Debtor; Buttimore, etc. v. Wolke, U.S. Bankruptcy Ct., February 22, 2008

MORRISTOWN NEW JERSEY MORRIS COUNTY DIVORCE MEDIATOR BANKRUPTCY

After their New Jersey divorce, the ex-husband filed a petition in bankruptcy. In the divorce, the ex-wife charged him with various acts of brutality, resulting in a $400,000 Tevis personal injury award. Both the divorce and bankruptcy proceedings were marked by his "extraordinary dilatory and vexatious tactics". Then, while post-divorce and post-bankruptcy proceedings were pending, the ex-wife was murdered. The ex-husband was arrested, indicted and is now awaiting trial, while professing his innocence. Meanwhile, he now alleges that his daughter [individually and as administrator of the estate of her mother] wrongly sought enforcement of the New Jersey Judgment of Divorce as to his social security benefits and police disability pension. HELD : the ex-husband interfered with the orderly processes of justice in the Bankruptcy Court and in the New Jersey divorce proceedings. He is not entitled to any relief. The Court abstains in favor of the New Jersey divorce court.   In Re Galtieri, U.S. Bankruptcy Ct., D.N.J.; September 4, 2007

HANOVER NEW JERSEY ESSEX COUNTY DIVORCE MEDIATION

The nursing home claimed the debts owed to it by the Debtor were nondischargeable because she allegedly converted, misappropriated, and improperly administered the funds of her mother, a patient at the plaintiff's facility. This was while the daughter acted as fiduciary for her mother. The court reviews in detail the various sources of the mother's funds -- including pension, bank accounts, social security payments, personal injury settlement proceeds, and life insurance proceeds---and the daughter's efforts to administer her mother's financial affairs. HELD : the plaintiff failed to show the Debtor's intent to defraud, and failed to establish her purported fiduciary defalcation . The daughter was therefore permitted to retain her Chapter 7 discharge from the debt owed to plaintiff.     I/M/O Parks, Debtor; Silver Care Center v. Parks, U.S. Bankruptcy Ct., District of New Jersey, August 8, 2007

JERSEY CITY NEW JERSEY HUDSON COUNTY DIVORCE ATTORNEY BANKRUPTCY

It was correct for the New Jersey divorce judge to deny the father's motion to stay wage garnishment. Both the child support arrears and the child care expenses are in the nature of support and therefore not dischargeable in bankruptcy.    Salamoni v. Salamoni, New Jersey App. Div., June 11, 2007

ENGLEWOOD DIVORCE BANKRUPTCY

Her former fiancé obtained a $26,000+ judgment against her, entered by default and renewed on his complaint alleging both negligent and willful and malicious personal injury. Reviewing the parties' testimony at trial, the court finds his testimony that she intentionally kicked him in the head to be credible and true, and holds that his judgment is a non-dischargeable debt and is collectible against her.     McCann v. Jacques; In re: Jacques, Debtor, U.S. Bankruptcy Ct., District of New Jersey, May 10, 2007

MILLBURN DIVORCE LAWYER

The Trustee seeks an order denying the New Jersey wife a discharge in her bankruptcy case,

alleging that: (1) with the intent to hinder, delay or defraud her creditors, she transferred her interest in her home to her husband within one year of her petition; and (2) she fraudulently made a false oath in connection with the transfer of the property by stating she had never owned an interest in any real property and had never transferred any such interest. Although the court denies the Trustee’s motion with respect to the first claim – noting the intent requirement and the existence of factual disputes as to the extent of the Debtor’s knowledge of her ownership interest in the property and the legal ramifications relative to her transfer of the property, it grants the Trustee’s motion with respect to the second claim.   In Re Castiglione, Debtor; Isaacson, etc. v. Castiglione, U.S.Bankruptcy Ct., District of New Jersey, January 19, 2007

NEW JERSEY DIVORCE LAWYER

The plaintiff objected to the bankruptcy discharge of wife, but the court holds that plaintiff failed to prove its case. The wife did not intend to defraud, hinder or delay when she signed a deed to her residence over to her husband's mother, nor has she failed to account for the loss of any property. The wife is herself a victim of her husband's fraud, has suffered more than any creditor and is entitled to a discharge.   In Re Coven, et ux., Debtors; First American Title Ins. Co., et al. v. Coven, et ux., U.S. Bankruptcy Ct., District of New Jersey, August 28, 2006.

NEW JERSEY DIVORCE : BANKRUPTCY

The debtor brought adversary proceedings relating to equitable distribution in his New Jersey divorce case and claimed the New Jersey court violated the automatic stay by ruling that his disability benefits were income for support purposes. He also challenged the ex-wife's battered spouse Tevis claim. The Bankruptcy Court is affirmed in its decision to abstain from deciding issues related to the New Jersey divorce proceedings. Additionally, the Bankruptcy Court did not err in distributing certain bankruptcy estate assets to pay the New Jersey divorce judgment for alimony arrears. Galtieri v. Galtieri, et al., etc., ___F.3d.___(3d. Cir. 2006); Third Circuit Court of Appeals, March 3, 2006

Counsel Fees Not Dischargeable

The bankruptcy court properly declared obligations to pay spousal support and attorney fees, awarded as additional spousal support, as nondischargeable pursuant to 11 U.S.C. § 523(a)(5) of the federal Bankruptcy Act. Van Aken v. Van Aken, ___F.Supp.___ (6th Cir. 2005), February 12, 2005.
http://caselaw.lp.findlaw.com/data2/circs/6th/048037p.pdf