In New York, divorce judgments often include stipulations designed to secure financial support for children and dependent spouses. As reaffirmed in a recent New York decision issued in a divorce action, family courts may enforce these stipulations, including life insurance provisions, to ensure continued support. If you seek to enforce a provision in your divorce decree, it is wise to consult with a New York family law attorney to understand your options.
History of the Case
It is reported that the plaintiff and defendant were divorced by judgment in August 2019, which incorporated but did not merge their 2018 settlement agreement. Allegedly, the settlement required the plaintiff to maintain a $1 million life insurance policy for the benefit of the children and dependent spouse, as set out in the stipulation. In 2020, the plaintiff reportedly filed a motion to hold the defendant in contempt for allegedly violating certain terms of the divorce judgment. The defendant, in turn, cross-moved to enforce the life insurance provision stipulated in the judgment, citing the plaintiff’s non-compliance.
Allegedly, following a hearing, the trial court granted the defendant’s cross-motion, ordering the plaintiff to comply with the life insurance requirement as outlined in the divorce judgment. The plaintiff appealed, arguing that he was not in contempt and challenging the enforcement of the life insurance provision.
Grounds for Enforcing Life Insurance Provisions in Divorce Judgments
On appeal, the court considered whether the trial court correctly enforced the life insurance provision in the divorce judgment. New York Domestic Relations Law § 236(B)(8)(a) gives courts broad authority to require a party to maintain life insurance policies as a means to secure ongoing child and spousal support. The court noted that the statute’s purpose is to ensure that financial obligations are met, even in the event of the supporting party’s death.
The court emphasized that when a settlement is incorporated but not merged into a divorce judgment, it is treated as a legally binding contract. Thus, the provisions must be interpreted according to principles of contract law, giving effect to the clear and ordinary meaning of the terms. Here, the stipulation expressly obligated the plaintiff to maintain the life insurance policy as a security for future support, a commitment the appellate court found to be unambiguous.
The court upheld the trial court’s enforcement of the life insurance requirement, rejecting the plaintiff’s argument that he was not in contempt for non-compliance. It reasoned that the enforcement was not contingent on a finding of contempt but was instead based on the parties’ explicit agreement incorporated in the divorce judgment. Accordingly, the court affirmed the order, holding that the trial court acted within its discretion in enforcing the provision to secure the dependents’ financial stability.
Meet with a Trusted New York Divorce Attorney
Securing financial provisions in divorce decrees can be complex, particularly if enforcement issues arise. If you need assistance with enforcing or modifying provisions in a divorce judgment, you should talk to an attorney. Ksenia Rudyuk is a trusted New York divorce who can provide guidance tailored to your unique circumstances and help protect your rights.You can reach Ms. Rudyuk through our online form or by calling us at 212-706-2001 to arrange a conference.