While in the midst of a divorce, Lucy and David Mimran sold their yacht and kept the proceeds in an escrow account. When David later defaulted on a $10 million loan, the lender tried to take the escrowed proceeds.
Although Lucy argued that her $6 million share shouldn't be released, the New York County Supreme Court sided with the lender and on appeal, the Appellate Division, First Department, affirmed.
Absent a final judgment of divorce, Lucy didn't have a "vested interest" in the monies that were in the account. And since they were still married when the collection process was underway, the AD1 was of the view the proceeds were "marital property" which could be attached by David's creditors.
Bet she didn't bank on that.
To view a copy of the Appellate Division's decision, please use this link: Hallsville Capital S.A. v. Dobrish