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NY Divorce Law Amended

MPMM Law - Tuesday, September 22, 2009

New York Divorce Law Amended

Automatic Restraining Orders Against Transfer Of Assets

Immediately In Effect When Divorce Case Started

A new law has gone into effect for New York divorce cases as of September 2009.

Starting September 1, 2009 automatic orders will now immediately go into effect whenever someone is served with both a summons and a copy of the automatic orders.

These automatic orders are basically concerned with preserving the financial status quo of the parties.

The automatic orders:

(1) Restrict a party from disposing of property in any way without the consent of the court or the other party.

(2) Restrict any funds, stocks or other assets from being disposed or altered.

(3) Prevent unreasonable debts from being incurred against the parties' interests or property.

(4) Require that all health insurance policies be maintained and unaltered for the parties and their families.

(5) Requires that all life, home and auto insurance policies will be maintained and shall not be altered.

These automatic orders may reduce the need for early motions to restrict such funds and property in divorce actions.

Below is a sample of the text of the automatic orders to be served with the summons:

AUTOMATIC ORDERS

Pursuant to New York DRL Section 236(B)(2) the following automatic orders are binding upon the Plaintiff immediately upon the filing of the summons, or summons and complaint, and upon the Defendant immediately upon the service of these automatic orders with the summons. The automatic orders shall remain in full force and effect during the pendency of this action, unless terminated, modified or amended by further order of this Court upon motion of either of the parties or upon written agreement between the parties duly executed and acknowledged. The automatic orders are as follows:

(1) Neither party shall sell, transfer, encumber, conceal, assign, remove or in any way dispose of, without the consent of the other party in writing, or by order of the court, any property (including, but not limited to, real estate, personal property, cash accounts, stocks, mutual funds, bank accounts, cars and boats) individually or jointly held by the parties, except in the usual course of business, for customary and usual household expenses or for reasonable attorney's fee in connection with this action.

(2) Neither party shall transfer, encumber, assign, remove, withdraw or in any way dispose of any tax deferred funds, stocks or other assets held in any individual retirement accounts, 401k accounts, profit sharing plans, Keough accounts, or any other pension or retirement account, and the parties shall further refrain from applying for or requesting the payment of retirement benefits or annuity payments of any kind, without the consent of the other party in writing, or upon further order of this Court.

(3) Neither party shall incur unreasonable debts hereafter, including, but not limited to, further borrowing against any credit line secured by the family residence, further encumbrancing any assets, or unreasonably using credit cards or cash advances against credit cards, except in the usual course of business or for customary or usual housing expenses, or for reasonable attorney's fees in connection with this action.

(4) Neither party shall cause the other party or the children of the marriage to be removed from any existing medical, hospital and dental insurance coverage, and each party shall maintain the existing medical, hospital and dental insurance coverage in full force and effect.

(5) Neither party shall change the beneficiaries of any existing life insurance policies, and each party shall maintain the existing life insurance, automobile insurance, homeowners and renters insurance policies in full force and effect.

© Copyright September 2009 - Robert G. McDermott, Esq.