
In the April 15th decision in FR v. AR, Nassau County Supreme Court Justice Edmund M. Dane ordered the pendente lite sale of the marital residence titled in the husband’s name after foreclosure proceedings had been commenced. The Court elected to preserve the asset by ordering the immediate sale, as the equity in the house was simply more important than the actual structure.
Last week’s post discussed the April 10th decision of the Third Department in Angello v. Angello, which upheld the trial determination that a wife’s refusal to approve a mid-action sale of the husband’s insolvent business constituted a wasteful dissipation of the largest marital asset. I asked whether the lower court could have simply approved the sale.
Here, to provide authority for the sale, Justice Dane wrestled with the 1977 (pre-Equitable Distribution) decision of the Court of Appeals in Kahn v. Kahn. There, it was held that while D.R.L. §234 authorized a court to decide questions of title, it did not authorize the sale of a marital residence held as tenants by the entirety unless there had been a change in a couple’s marital status that changed the interests of the parties to tenants in common. In the absence of a change in marital status, there could be no question of title between the parties, as the law treated tenants by the entirety as a single person. Nonetheless, the fiction is not applied when recognizing that a tenant by the entirety has the power to mortgage their interest. The Court also noted that prior to the enactment of D.R.L. §234 and its predecessor Civil Practice Act §1164-a, “no authority existed to permit a court to adjudicate a real property right in a marital action.”
Justice Dane held that Kahn did not preclude a sale and on the facts before the Court, an immediate sale was necessary.
The parties married in 2007. The marital residence was acquired after the parties’ marriage and prior to the commencement of this action. Title was taken solely in the name of the husband. The husband commenced this matrimonial action in May 2023 and stopped making mortgage payments in July 2023. The mortgagee bank commenced a foreclosure action on March 28, 2024.
The wife made a pendente lite application to sell the marital residence.
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