D.K. v. B.K. (FM-20-1243-18, UNION COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided January 7, 2022·No. A-0603-20·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-0603-20

D.K.,1 Plaintiff-Appellant,

v. B.K.,

Defendant-Respondent.

Argued December 13, 2021 – Decided January 7, 2022 Before Judges Vernoia and Firko.

On appeal from the Superior Court of New Jersey, Chancery Division, Family Part, Union County, Docket No. FM-20-1243-18.

Eliana T. Baer argued the cause for appellant (Fox Rothschild, LLP, attorneys; Eliana T. Baer, of counsel and on the briefs).

Allison P. Berecz argued the cause for respondent (Skoloff & Wolfe, PC, attorneys; Allison P. Berecz, on the brief).

1 We use initials to identify the parties to protect and preserve the confidentiality of these proceedings.

PER CURIAM In this post-judgment matrimonial matter, plaintiff D.K. appeals from a September 25, 2020 Family Part order denying his motion for an interim reduction in his limited duration alimony (LDA) payments and child support obligations based on the loss of his employment on Broadway due to the COVID-19 pandemic. The judge found plaintiff had not demonstrated a substantial change of circumstances and acted in bad faith, resulting in a $3,000 counsel fee award to defendant. Plaintiff also appeals from the judge's January 4, 2021 order granting defendant B.K.'s notice of cross-motion appointing a parent coordinator (PC) with authority to make final decisions on issues unrelated to parenting. For the reasons that follow, we affirm in part, and vacate, reverse, and remand in part.

I.

The following facts are derived from the record. The parties were married in October 2004. They have three children born in 2010, 2011, and 2014. The parties divorced in April 2018. A marital settlement agreement (MSA) was negotiated by the parties, who were both self-represented at the time, and reduced to a writing by their mediator, who is an attorney. The MSA was incorporated into the judgment of divorce (JOD). In pertinent part, the MSA A-0603-20

provides for alimony and child support to be paid by plaintiff to defendant as follows:

Based upon the parenting time schedule set forth above, alimony paid from [plaintiff] to [defendant] as set forth below and the respective incomes of the parties, [plaintiff] shall pay child support to [defendant] during his alimony term as follows: $1,833.33 per month in year one (1); $1,000.00 per month for years two (2)

through four (4); $1,150.00 per month for years five (5)

through seven (7) and $1,300.00 per month in year eight (8). At the end of the eight (8) year term, or upon the termination of alimony, whichever first occurs, child support shall be [thirty percent] of [plaintiff]'s gross income, regardless of [defendant]'s income.

[Plaintiff]'s [thirty percent] obligation is comprised of [ten percent] of his gross income per child. Therefore, [plaintiff]'s child support obligation shall decrease by [ten percent] with the emancipation of each child. . . .

Additionally, in years one (1) through eight (8), [plaintiff] shall pay additional child support in the event that he earns a gross reportable income from any source over $78,000.00 . . . .

The MSA further provides "[t]he parties agree that the child support numbers set forth above and the percentage formula set forth above to be paid upon the termination of alimony shall be non-modifiable."

Regarding alimony, the MSA provides:

[Plaintiff] is employed full-time and earns an income of approximately $78,889.64 per year. [Defendant] is employed part-time and earns an income of approximately $4,368.45 per year. Based upon the parties' respective incomes, [they] agree that [plaintiff]

A-0603-20

shall pay [LDA] to [defendant] for a term of eight (8)

years. Alimony shall commence on March 1, 2018. For the first year, [plaintiff] shall pay alimony in the amount of $25,000.00; for the second year, [plaintiff]

shall pay alimony in the amount of $30,000.00; in years three (3) and four (4), [plaintiff] shall [pay] alimony in the amount of $25,000.00 per year; in years five (5)

through seven (7) [plaintiff] shall pay alimony in the amount of $20,000.00 per year; and in year eight (8)

[plaintiff] shall pay alimony in the amount of $15,000.00 per year.

Alimony is modifiable "[i]n the event that there is a change in the IRS Tax Code which prevents th[e] deduction" of alimony from plaintiff's taxable income, which the MSA stated "shall constitute a significant change of circumstances warranting a review of [plaintiff]'s alimony obligation." While there also exists a provision for a reduction of alimony of twenty-five percent in the event that defendant "simultaneously earns a gross income in the amount of $75,000.00 or above and in the [event] [plaintiff] earns a gross income in the amount of $65,000.00 or below," alimony is agreed to be non-modifiable. Specifically, the MSA states as follows:

The parties hereto acknowledge and agree that the terms of the [MSA] and the payments as set forth herein are in full and complete satisfaction of all claims for support, maintenance and/or alimony that one may have against the other. The parties agree and intend that the terms of this [MSA] as the same relate to alimony shall be final. The parties have envisioned and considered any and all foreseeable events occurring to either of

A-0603-20

them. The parties have specifically considered increases or decreases in the cost of living, increase or decreases in their respective incomes, their loss of or inability to secure employment, any potential disability of either party, any prospective change of employment, the subsequent acquisition or loss of assets by either of them, the dissipation (whether negligent or not) of the assets received by each of them as and for equitable distribution in this matter, and any other event or events which may or do change the quality of their separate economic lives. The parties understand the holdings in the case[s] of Lepis v. Lepis, 83 N.J. 139 (1980), Crews v. Crews, 164 N.J. 11 (2000), relative to modification of support provisions based on changes in circumstances, and lifestyle, and notwithstanding same, each party hereby waives any right to seek a modification of the alimony terms in the future, except as specifically set forth in paragraphs 3.2 and 3.3 above.

Having considered all of the foregoing, the parties agree that the alimony set forth herein shall be non-

modifiable under any circumstances for any reason, except as specifically set forth in paragraphs 3.2 and 3.3 above.

[(emphasis added).]

Between April of 2003 until March of 2020, plaintiff worked as the associate director of a Broadway production company, which engaged in live theatrical entertainment. Plaintiff has over twenty years of experience working in the theater industry. Toward the end of his employment at the organization, plaintiff earned approximately $78,000 annually, "which included ancillary income from projects related to his position." According to defendant, before

A-0603-20

the pandemic closed Broadway, plaintiff learned in July 2019, eight months prior to Broadway's COVID-19 closure, that his employment was coming to an end because the individual he worked for passed away. However, plaintiff claims he was laid off by the organization on March 16, 2020, due to the COVID-19 outbreak because live theatrical performances had closed. No reopening date was set at that time. Plaintiff supplemented his income by directing other "projects globally as an independent theater director," and teaching "as an [a]djunct [p]rofessor of [t]heater" at a nearby university on Saturdays.

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D.K. v. B.K. (FM-20-1243-18, UNION COUNTY AND STATEWIDE) (D.K. v. B.K. (FM-20-1243-18, UNION COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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