Fields v. Fields

65 A.D.3d 297, 882 N.Y.S.2d 67
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 25, 2009
StatusPublished
Cited by10 cases

This text of 65 A.D.3d 297 (Fields v. Fields) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fields v. Fields, 65 A.D.3d 297, 882 N.Y.S.2d 67 (N.Y. Ct. App. 2009).

Opinions

OPINION OF THE COURT

Acosta, J.

In this action for divorce, plaintiff husband seeks to divest 69-year-old defendant wife of her equitable share of their marital residence, where they have lived continuously for over 31 years and raised their only child, on the basis that the townhouse is separate property that he owns and manages with his mother, and that defendant had no impact on its increase in value. We disagree with plaintiffs as well as the dissent’s basic premise that the townhouse is separate property, and therefore affirm.

The parties were married on August 1, 1970, and approximately 2V2 years later, on March 19, 1973, the couple’s son was born. The wife continued to work outside the home until February 1973, and returned to work outside the home six months af[299]*299ter the birth. In 1978, the couple decided to purchase a house and found a five-story townhouse with 10 apartments on the Upper West Side of Manhattan. The wife testified that maintaining a 10-apartment townhouse would be far too much work for her in conjunction with childcare for a five year old after working outside the home all day. She therefore was prepared to invest in the property with her husband provided certain preconditions were met, including provisions for a maid’s room and a live-in maid. The husband, unwilling to assent to the wife’s preconditions, purchased the building with the help of his mother. The purchase price was $130,000, with $30,000 down and the balance made up through two mortgages. The husband’s mother arranged for her son to get the down payment from his grandparents; $15,000 represented a bequest that he would have gotten, and $15,000 that his mother agreed to repay to the grandparents. At the time of trial, the townhouse was appraised at $2,625,000.

The husband closed on the townhouse on August 31, 1978 and conveyed a one-half interest to his mother, as a joint owner, on September 6, 1978. Thereafter, from 1982 to 2001, the husband and his mother managed the townhouse as a formal partnership. The mortgages, as well as the maintenance and most renovations, were satisfied through rents and refinancing. Certain renovations were made and paid for by the husband’s mother.

The couple and their five-year-old child moved into apartment 2 until apartment 1 was turned into a duplex with the basement apartment in 1979. The husband and his parents each paid rent to the partnership, of $1,100 per month, for their respective apartments, until 2002.

The couple lived in apartment 1 for five months, until the wife became ill. Believing that the physical conditions of the basement apartment were causing her illness, she moved into vacant apartment 3, for which she paid rent. In 1983, following a burglary in that apartment, she moved into apartment 2, but returned to apartment 1 to practice piano and take baths.

The wife purchased some furniture for apartment 1 and “occasionally” swept and vacuumed the hall in front of the apartment entrance. She testified that she would clean up the lobby during renovations. She also purchased a $600 vacuum cleaner to clean the lobby three times a week, cleaned the mailbox vestibule, swept the interior and exterior steps, used bleach to clean dog excrement from the sidewalk, and raked leaves from a [300]*300maple tree in the backyard. In the summers, when the husband would go to France to spend time with his mother, the wife took responsibility for disposing of the building’s refuse. She washed lobby curtains, cleaned lobby windows and polished the lobby mirror. She also decorated apartment 1, planted and maintained the backyard, and bought patio furniture.

In addition to these services, the wife purchased a carpet, and a $500 Formica countertop for the marital apartment, as well as paying $700 for flooring in the foyer. She paid $400 for a foyer mirror, and paid for couches, a basement door installation, linen closet, bathroom cabinets and a chandelier.

In 1982, the husband and his mother opened a partnership account at Citibank into which rents and mortgage funds were deposited. He testified that he occasionally deposited his paychecks into this account as well as a $35,000 inheritance, which he used for personal expenses. Occasionally, the account would be used as a “pass through” for his wife’s paychecks. She would deposit the check in the account and a transfer for that amount would be “wired” to her separate account. Other times, the husband would deposit the wife’s check into the account and he would give her cash. In addition to using the account to “accommodate” other transactions, the husband deposited into this account monies he earned from tax preparing and a video business, as well as income from managing a building across the street, which he described as “very small.”

The husband commenced this action for divorce in February 2005, and on March 8, 2006, the court referred the issues of equitable distribution and counsel fees to a Special Referee. The Special Referee found that the marital property titled in the husband’s name totaled $1,234,183.81. This included one half of the $2,625,000 value of the townhouse, less the $309,396 mortgage, and less the $30,000 separate property contribution the husband made to the acquisition of the property, as well 50% of the value of the Citibank account. There were also three other bank accounts totaling a little over $20,000, titled in the husband’s name. The marital property titled in the wife’s name totaled $71,892.60.

Citing to Maczek v Maczek (248 AD2d 835, 837 [1998] [“A party is entitled to a return of the total contribution he (or she) made toward the purchase of the marital residence from his (or her.) separate property” (internal quotation marks omitted)]), the Special Referee found that the $30,000 down payment to be the husband’s separate property, and a baby grand piano and an oak table owned by the wife to be her separate property.

[301]*301The Special Referee then found that the wife was entitled to 35% of the marital property.1 With respect to the townhouse, he found that the wife “participated in and made countless contributions to the building, both directly and indirectly”2 even though she “was not interested in the investment,” and that the “building expenses were paid from rent proceeds.” The Special Referee also found that the wife contributed to the building indirectly as spouse and mother.

The court confirmed the Special Referee’s report in the judgment of divorce, entered June 22, 2007. A money judgment in the amount of $393,118.22 was entered on October 10, 2007 in favor of the wife. The husband appeals, in this consolidated appeal, from both the judgment of divorce and the money judgment. We now affirm.

The subject property, a valuable townhouse, was purchased by the husband in 1978 during his marriage to his wife and served as their marital residence. The parties raised their son in this residence and have lived in various configurations continuously ever since. That the husband used separate property for the down payment and that the property was titled in his and his mother’s name does not change the fact that his half interest in the property is a marital asset. These circumstances merely entitle the husband to a credit for his contribution of separate property toward the purchase of the marital residence, [302]*302which was accounted for by the Referee (see Juhasz v Juhasz, 59 AD3d 1023 [2009]; Heine v Heine,

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Cite This Page — Counsel Stack

Bluebook (online)
65 A.D.3d 297, 882 N.Y.S.2d 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fields-v-fields-nyappdiv-2009.