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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2574

                               2009-2010 Regular Sessions

                   IN ASSEMBLY

                                    January 20, 2009
                                       ___________

        Introduced  by  M.  of  A.  WEINSTEIN  -- Multi-Sponsored by -- M. of A.
          CYMBROWITZ, DESTITO, GLICK,  JOHN,  McENENY,  NOLAN,  PAULIN,  REILLY,
          SEMINERIO, TITUS -- read once and referred to the Committee on Judici-
          ary

        AN  ACT to amend the domestic relations law, in relation to establishing
          automatic orders in matrimonial actions

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision  2  of  part B of section 236 of the domestic
     2  relations law, as added by chapter 281 of the laws of 1980,  is  amended
     3  to read as follows:
     4    2.  Matrimonial  actions. a. Except as provided in subdivision five of
     5  this part, the provisions of this part shall be  applicable  to  actions
     6  for  an  annulment  or  dissolution  of a marriage, for a divorce, for a
     7  separation, for a declaration of the nullity of a void marriage,  for  a
     8  declaration of the validity or nullity of a foreign judgment of divorce,
     9  for  a  declaration  of  the  validity  or nullity of a marriage, and to
    10  proceedings to obtain maintenance or a distribution of marital  property
    11  following  a  foreign  judgment  of  divorce, commenced on and after the
    12  effective date of this part. Any application which seeks a  modification
    13  of  a judgment, order or decree made in an action commenced prior to the
    14  effective date of this part shall be heard and determined in  accordance
    15  with the provisions of part A of this section.
    16    b.  With respect to matrimonial actions which commence on or after the
    17  effective date of this paragraph, the plaintiff shall cause to be served
    18  upon the defendant, simultaneous with the service of the summons, a copy
    19  of the automatic orders set forth in  this  paragraph.    The  automatic
    20  orders shall be binding upon the plaintiff in a matrimonial action imme-
    21  diately  upon  the  filing of the summons, or summons and complaint, and
    22  upon the defendant immediately upon the service of the automatic  orders
    23  with  the  summons.  The automatic orders shall remain in full force and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01553-01-9

        A. 2574                             2

     1  effect during the pendency of the action, unless terminated, modified or
     2  amended by further order of the court  upon  motion  of  either  of  the
     3  parties  or upon written agreement between the parties duly executed and
     4  acknowledged. The automatic orders are as follows:
     5    (1)  Neither  party  shall  sell, transfer, encumber, conceal, assign,
     6  remove or in any way dispose of, without the consent of the other  party
     7  in  writing,  or by order of the court, any property (including, but not
     8  limited to, real estate, personal property, cash accounts, stocks, mutu-
     9  al funds, bank accounts, cars and boats) individually or jointly held by
    10  the parties, except in the usual course of business, for  customary  and
    11  usual household expenses or for reasonable attorney's fees in connection
    12  with this action.
    13    (2)  Neither  party shall transfer, encumber, assign, remove, withdraw
    14  or in any way dispose of any tax deferred funds, stocks or other  assets
    15  held  in any individual retirement accounts, 401K accounts, profit shar-
    16  ing plans, Keough accounts, or any other pension or retirement  account,
    17  and  the  parties  shall further refrain from applying for or requesting
    18  the payment of retirement benefits or  annuity  payments  of  any  kind,
    19  without the consent of the other party in writing, or upon further order
    20  of the court.
    21    (3) Neither party shall incur unreasonable debts hereafter, including,
    22  but  not limited to further borrowing against any credit line secured by
    23  the family residence, further encumbrancing any assets, or  unreasonably
    24  using  credit cards or cash advances against credit cards, except in the
    25  usual course of business or for customary or usual  household  expenses,
    26  or for reasonable attorney's fees in connection with this action.
    27    (4)  Neither  party shall cause the other party or the children of the
    28  marriage to be removed from any existing medical,  hospital  and  dental
    29  insurance  coverage, and each party shall maintain the existing medical,
    30  hospital and dental insurance coverage in full force and effect.
    31    (5) Neither party shall change the beneficiaries of any existing  life
    32  insurance  policies,  and  each  party  shall maintain the existing life
    33  insurance, automobile insurance, homeowners and renters insurance  poli-
    34  cies in full force and effect.
    35    §  2.  This  act  shall take effect on the first of the calendar month
    36  next succeeding the sixtieth day after it shall have become a law.

 
BILL NUMBER: A2574

SPONSOR: Weinstein¦(MS)¦¦¦¦¦¦

 
TITLE OF BILL:  An act to amend the domestic relations law, in
relation to establishing automatic orders in matrimonial actions

 
PURPOSE OF BILL:  To prevent a party in a matrimonial action commenced
in Supreme Court from dissipating assets in order to deprive his or her
spouse of the property to which that spouse may be entitled.

 
SUMMARY OF PROVISIONS OF BILL:  Amends domestic relations law § 236
(B) (2) to place upon the plaintiff a duty to serve upon the defendant
automatic orders which would bind both parties from the commencement of
a matrimonial action. The automatic orders would be binding upon the
plaintiff upon the commencement of the action and upon the defendant
upon service of the Summons or Summons and Complaint. The specific
matters covered by the proposed automatic orders include prohibitions
against the following:  transfers and encumbrances of real and personal
property and retirement funds; the accumulation of unreasonable debt;
and changes in beneficiaries on existing health and life insurance poli-
cies.

 
JUSTIFICATION:  The adoption of automatic orders at the very commence-
ment of a matrimonial action is intended to prevent both parties from
dissipating assets, incurring unreasonable debts, or removing a party or
the children from health or life insurance policies. Making these prohi-
bitions automatic upon commencement of the action will also save on
legal fees and judicial time. The bill has the support of the OCA
Committee on Matrimonial Practice, chaired by Hon. Jacqueline Silber-
mann, Statewide Administrative Judge for Matrimonial Matters.

 
LEGISLATIVE HISTORY:

2007-08; A.3128 - Passed Assembly
2005-06; A.8180 - Passed Assembly
2004; A.7521- Assembly Rules Committee
2002; A.7790/S.4408 - Assembly Rules Committee/Judiciary Committee
2001; A.7790/S.4408 - Assembly Rules Committee/Judiciary Committee
2000; A.10889 - Assembly Rules Committee

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  None.

 
EFFECTIVE DATE:  The law will take effect on the first of the calendar
month next succeeding the sixtieth day after it shall become a law.