New York Divorce Lawyer Blog
New Yorkers who decide to end their marriage will often attempt to expedite their divorce proceedings via stipulation of settlement agreements. While such agreements can allow for an efficient and amicable resolution, they must be crafted with due care, as any ambiguities could lead to disputes and litigation down the line, as demonstrated in a recent New York divorce action. If you have questions about your options with regard to divorce, it is smart to confer with a New York divorce lawyer as soon as possible.
Factual Setting
It is alleged that the husband and the wife were married in March 2000 and had one daughter, born in November 2003. The parties subsequently divorced in 2007. They resolved their financial and custody issues through a stipulation of settlement, which was incorporated but not merged into their final judgment of divorce in December 2007. Under this stipulation, the wife was granted exclusive occupancy of the marital residence until its sale, with the husband responsible for monthly mortgage payments, real estate taxes, and homeowner’s insurance. Additionally, the husband was required to cover 57% of their daughter’s college expenses, with no specific provision regarding who would pay the remaining 43%. The husband paid 100% of the tuition costs up to the date of the litigation.
It is reported that the husband sought enforcement of the stipulation regarding the marital residence and requested credits for payments made towards homeowner’s insurance, property taxes, and their daughter’s college tuition. The wife filed a cross-motion contesting these credits and seeking additional credits for mortgage principal reductions. The trial court granted the husband’s motion, awarding him credits for the insurance and tax payments and for the child’s tuition while denying the wife’s cross-motion entirely. The wife appealed.
Interpretation of Stipulation of Settlement Agreements
On appeal, the court reviewed the stipulation of settlement under ordinary contract principles, emphasizing that clear and unambiguous terms must be enforced as written. The court acknowledged that while the husband was entitled to some credit for his post-2009 insurance and tax payments, the trial court erred in awarding him credit for the entire period from 2009 to 2022. The court noted that the husband’s records did not specify when he began making direct payments, warranting a remand for recalculation of the appropriate credit.
Regarding the college tuition payments, the court identified an ambiguity in the stipulation concerning the wife’s obligation to pay 43% of their daughter’s tuition. The court remanded this issue for further proceedings to resolve the ambiguity, allowing the submission of extrinsic evidence to determine whether the wife was responsible for this portion of the tuition. The court clarified that if it was determined that she was obligated to pay, the husband should receive a credit against any outstanding arrears or the wife’s purchase of the marital home.
The court affirmed the lower court’s decision to deny the wife’s claim for a 100% credit of the mortgage principal reduction, concluding that the stipulation did not entitle her to such a credit. Furthermore, the court upheld the denial of prejudgment interest, noting that the stipulation did not provide for it and that such interest is not automatically granted in matrimonial cases. The appellate court thus modified the lower court’s order by vacating the credits awarded to the husband and remanding for further determination and recalculation while affirming the rest of the order.
Talk to a Dedicated New York Divorce Attorney
It is critical that any stipulation resolving disputed issues in divorce actions establish the parties’ duties and rights in clear terms to avoid disagreements in the future. If you need assistance protecting your interests in a divorce action, it is wise to talk to a lawyer. Ksenia Rudyuk is a dedicated New York divorce attorney, and if you engage her services, she will advocate zealously on your behalf. You can contact Ms. Rudyuk by using our form online or by calling 212-706-2001 to set up a meeting.