4. WHY CHANGE
provide consistency and predictability
incorporate factors that reflect the experiences of divorcing
couples
continual improvement (directed review of the laws)
5. JUSTIFICATIONS
Serious concerns over the ineffectiveness of past
maintenance provisions
Past results were inconsistent and unpredictable
So difficult that some didn’t even try to get it
Kaye commission....
6. Kaye Commission
2004 the “Matrimonial Commission” was established by
Chief Justice Kaye
32 member body of judges, private and not for profit bar
found significant dissatisfaction by public and lawyers
past law was based on “un-prioritized factors”, with little
guidance on how to apply them
8. Where the **** is it from?!
Numerical guidelines of the bill are similar to guideline
proposed by the American Academy of Matrimonial Lawyers
based on a study of diff approaches in the US
9. It’s Result
results in awards only when there is an income gap between
the two parties
the less monied spouse’s income is less than 2/3rds of more
monied spouse
only apply up to 500K
bring people to the table
10. .... more results
protects individuals who’s income is less than the self
support reserve
135% of Fed Poverty Guidelines = 14,620/year
11. What it Doesn’t Do
does NOT make any statutory change to current law
regarding final maintenance awards
Duration will still be based on statutory factors
12. Lets Break this down . . .
WHERE: NY Dom Rel § 236 Section 1 Part B 5-a
WHEN: As of October 12, 2010
13. How: . . . The Calculation
Court must compare 2 calculations
both exclude income over 500K
First: 30% of payor’s income less 20% of payee’s
Second: 40% of combined income less payee’s
LESSER of the 2 prevails
14. How: Calculation, Key terms
Payor = spouse with higher income
Payee = spouse with less income
Length of marriage = marriage date to commencement
Income = as defined by CSSA
Income Cap = 500K
15. What do you do with 500K+
Apply the factors:
length of marriage
diff in income of parties
standard of living during marriage
need to have more edu training
wasteful dissipation of marital funds
transfers made in anticipation of matrimonial action
existence of premarital joint household
16. Factors continued
acts by one party that have inhibited or inbits the other from working
availability and cost of medical insurance
care of children/step children/ elderly/disabled
inability to work due to age
need to pay for additional expenses (childcare)
tax consequences
marital property subject to distribution
lost earning capacity
17. last one ...
ANY OTHER FACTOR WHICH THE COURT FINDS JUST AND
PROPER
18. When does it end?
the temporary maintenance ends upon award of
maintenance through final judgement
OR
Death of either party whichever comes first
19. Apply what you learned
HYPO:
Jack and Jill , high school sweet hearts move in together after both attending college. Jack gets a job on Wall Street, Jill works as a therapist. Jack
gets Jill preggers and Jack proposes before child is born.
J&J get married October 25th 1982. Jill starts to work part-time while raising the kids, Jack begins working for Goldman Sacks, long hard hours
and is rarely home.
Fast forward... Jill walks into our class and announces that she has fallen for a patient of hers, Manuel di Adonito (a south american cook who
models in his spare time and suffers from severe narcissism.) We wants to file for divorce today, because Jack and found out about her love affair
and threw her out of the house, and cancelled all credit cards.
How much temp support can Jill get if Jack has consistently made 2.5M for the past three years. Jill’s practice expanded after their kid went to
college and is now self supporting. Jill made 130K for the past 3 years
20. Step 1
take 30% of payor’s income
subtract
20% of payee’s income
UP TO INCOME CAP ONLY!
21. Step 2
Add Payor’s income up to income cap with Payee’s income
multiply the sum by 40%
then subtract Payee’s income from that amount
22. Step 3
the lower figure between Step 1 and Step 2 is the temp
maintenance figure
IF the amount from step 2 is less than or equal to zero, the
guideline amount is 0
23. Step 4
Where income of Payor is greater than income cap, apply
other factors
24. Step 5
Does the guideline amount reduce payor’s income to below
the self support reserve?
if YES then the amount for temp maintenance is the
difference between Payor’s income and the self support
reserve
