In its April 10th decision in Angello v. Angello, the Third Department 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. Such warranted saddling the wife with half of the business’s debts. It also, in part, justified a downward deviation from the maintenance guidelines but did not warrant an award of counsel fees to the financially-superior husband.

The parties were married in 1989 and had one adult child. The husband commenced this divorce action in 2016, and the trial began in 2019. The marital property at issue included a local, organic grocery distribution business primarily operated by the husband, which had incurred significant debt and had ceased operations by the time of trial. Marital property also included a warehouse associated with the business, as well as the marital residence. At the conclusion of the trial, the parties each moved for an award of counsel fees.

Columbia County Supreme Court Justice Margaret Walsh found that the wife had wastefully dissipated marital assets by refusing to agree to the 2018 sale of the business to one of the marital business’ competitors in exchange for the buyer assuming responsibility for $900,000 in business debt. The trial court valued the business as of the date of trial and directed that the wife be responsible for half of its $995,000 in debt. Justice Walsh also directed that the warehouse be sold and that the sales proceeds net of liens be applied against the remaining business debt. Justice Walsh also directed that the marital residence be sold with the net proceeds equally divided between the parties.

The presumptive amount of maintenance to which the wife was entitled was $914 a month, but Justice Walsh determined that a downward deviation was warranted, directing the husband to pay $305 a month for five years.Continue Reading Wife’s Refusal to Consent to Mid-Action Sale of Husband’s Business is Wastefull Dissipation

Does a four-day delay in notarization by the mediator/notary of a separation agreement  executed by the parties in a Zoom session with the mediator render the agreement invalid? In his June 29, 2021 decision in Ryerson v. Ryerson, Warren County Acting Supreme Court Justice Richard B. Meyer held it did not.

The parties used William J. McCoskery as mediator to assist them in resolving various matters attendant to their divorce. They met once in person with the mediator, during which he advised both parties to consult with an attorney. Based upon his discussions with the parties, the mediator prepared a 15-page separation agreement and emailed it to both parties for their review. The husband claimed not to have read the complete document.

The Governor declared the Covid state of emergency on March 7, 2020. Notarization using audio-video technology was authorized by Executive Order No. 202.7. That Order provides:

Any notarial act that is required under New York State law is authorized to be performed utilizing audio-video technology provided that the following conditions are met:

    • The person seeking the Notary’s services, if not personally known to the Notary, must present valid photo ID to the Notary during the video conference, not merely transmit it prior to or after;
    • The video conference must allow for direct interaction between the person and the Notary (e.g. no pre-recorded videos of the person signing);
    • The person must affirmatively represent that he or she is physically situated in the State of New York;
    • The person must transmit by fax or electronic means a legible copy of the signed document directly to the Notary on the same date it was signed;
    • The Notary may notarize the transmitted copy of the document and transmit the same back to the person; and
    • The Notary may repeat the notarization of the original signed document as of the date of execution provided the Notary receives such original signed document together with the electronically notarized copy within thirty days after the date of execution.

Continue Reading Delayed Notarization by Mediator Does Not Invalidate Separation Agreement Signed Over Zoom