In Blay v. Blay , Jeffrey Blay challenged a court's award of certain property to his spouse.
In 1978, Jeffrey and his brother started-up a landscaping and snow-removal business, in which Jeffrey's brother supposedly contributed the initial capital. In 1989, the two brothers purchased 16-acres of land and renovated the house which was situated on the property. In June of 1992, Jeffrey married Tina and the couple built a studio on the property in order to teach karate classes. Some time later, when Tina expressed dissatisfaction with the marriage, Jeffrey dissolved the business, formed a corporation and a limited partnership and transferred the bulk of the enterprise's assets to his brother. In May of 2005, Tina filed for divorce.
After the Albany County Supreme Court granted relief in Tina's favor and awarded her (among other things) half of her husband's interest in the real estate owned with his brother, Jeffrey appealed.
The Appellate Division, Third Department, believed Jeffrey had transferred the property to the limited partnership only to deprive Tina of her "marital interests." Furthermore, funds used to pay the mortgage, acquire vehicles, and improve the property, "came from partnership funds earned during the marriage" and thus subject to distribution.
Although Tina wasn't entitled to Jeffrey's IRA account because there were no post-marriage contributions, a portion of the Keogh (business) retirement plan was found to comprise "marital property," and 7 years of $300 weekly maintenance payments were viewed as "excessive" and reduced to $200 per week, for 2 years.
Karate don't?
Arigatou gozaimasu!
To download a copy of the Appellate Division's decision, please use this link: Blay v. Blay