Kavanakudiyil v. Kavanakudiyil (In Re Kavanakudiyil)

143 B.R. 598, 1992 Bankr. LEXIS 1064, 1992 WL 166020
CourtUnited States Bankruptcy Court, S.D. New York
DecidedJuly 15, 1992
Docket18-12728
StatusPublished
Cited by8 cases

This text of 143 B.R. 598 (Kavanakudiyil v. Kavanakudiyil (In Re Kavanakudiyil)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kavanakudiyil v. Kavanakudiyil (In Re Kavanakudiyil), 143 B.R. 598, 1992 Bankr. LEXIS 1064, 1992 WL 166020 (N.Y. 1992).

Opinion

DECISION ON MOTION FOR SUMMARY JUDGMENT

HOWARD SCHWARTZBERG, Bankruptcy Judge.

Varghese Kavanakudiyil (“Kavanakudi-yil”), the debtor in this Chapter 7 case, has moved for summary judgment in an adversary proceeding brought by his former wife, Mariamma Kavanakudiyil (“Mariam-ma”), to declare certain obligations to her which arise from a judgment of divorce as nondischargeable debts under 11 U.S.C. § 523(a)(5)(B) and to declare as valid and unavoidable certain liens executed in connection with these obligations. Kavanaku-diyil argues that his obligations to Mariam-ma should not be excepted from discharge because they are not in the nature of alimony, maintenance or child support but rather represent a combination of punitive damages and a property settlement. Mariam-ma opposes the motion arguing that the obligations constitute maintenance and child support and therefore are nondis-chargeable.

FACTUAL BACKGROUND

Kavanakudiyil, the debtor, was divorced from Mariamma in New York State Supreme Court, County of Westchester on February 22, 1991. Justice Dennis Donovan presided over the action. At the conclusion of the divorce trial, on March 28, 1991, Justice Donovan rendered a decision from the bench (“Decision”). Subsequently, on June 21, 1991, he issued Findings of Fact and Conclusions of Law (“Findings”) and a Judgment of Divorce and Money Judgment (“Judgment”) which reflected his Decision. Justice Donovan’s Decision set forth the following facts:

(1) Kavanakudiyil’s annual income has been at least $40,000.00 for the last several years. He has often worked off of the books.
(2) Kavanakudiyil’s income for the purpose of determining child support is $45,000.00.
(3) Mariamma testified that she was not seeking any temporary maintenance.
(4) Kavanakudiyil was 49 and Mariamma was 48 and both were in good health when the Decision was rendered.
(5) The economic future of both parties is gloomy because of the substantial amount of marital debt.
(6) Kavanakudiyil wasted assets during the marriage.
(7) Kavanakudiyil, during the divorce proceeding, concealed income and assets.
(8) Kavanakudiyil protracted the divorce litigation. This delay was one reason for awarding Mariamma attorneys fees.

Although Justice Donovan, in his Decision, alluded to the fact that Mariamma was *600 employed as a nurse during the marriage, he did not specifically refer to her employment or wages. It is clear throughout the Decision that Justice Donovan was primarily concerned with the welfare of the couple’s two children as reflected in the following language:

The Court is concerned about the breakup of the marital residence and whether in the interest of the children and their custodial requirement the home and furnishings, whether they remain intact while the children develop and mature.

Kavanakudiyil v. Kavanakudiyil, New York State Supreme Court, Westchester County, Index No. 16817/87, March 28, 1991, Justice Dennis Donovan at 7.

A Judgment of Divorce was entered by the state court on June 20, 1991. The Judgment rendered by Justice Donovan does the following:

(1) Awards custody of the couple’s two children to Mariamma subject to Kava-nakudiyil’s visitation rights;
(2) Awards exclusive occupancy and possession of the marital residence located in Armonk, New York to Mar-iamma for the use and benefit of the children until the youngest child reaches 19 or graduates from high school, whichever is sooner “so that the children may enjoy at least a reasonable standard of living until the children are furnished their college education.” Id. at, 16.
(3) Grants Mariamma, upon the sale of the premises, sixty-five percent of the net proceeds and grants Kavanakudiyil thirty-five percent. Mariamma was awarded the larger portion because “she will need the money to provide a home for the children when they come home from college and if they become day hops, to provide food clothing and shelter for the children during their formative college years.” Id. at 16.
(4) Imposes upon Mariamma responsibility for expenses associated with the maintenance of the residence including payments due under the first mortgage, real estate taxes, insurance, heat, fuel, telephone, and utilities;
(5) Imposes upon Kavanakudiyil responsibility for payments due under any second mortgage or home equity loan;
(6) Awards possession and ownership of all furniture and furnishings in the marital residence to Mariamma except for those items given to Kavanakudiyil by his family;
(7) Requires Kavanakudiyil to pay Mar-iamma $109.01 per week for each child as Child Support until the earlier of emancipation or attainment of age 21;
(8) Requires both parties to maintain the same type of health and insurance coverage for the benefit of their children that they carried prior to the divorce action and requires both parties to share equally medical expenses that are not covered by insurance;
(9) Allows Mariamma to claim the youngest child as a deduction for tax purposes and allows Kavanakudiyil to claim the eldest child; and
(10)Awards to Mariamma $7,600.00 on account of child support arrears, $35,-229.00 representing Mariamma’s legal fees in connection with the divorce and grants immediate execution of these judgments upon Kavanakudiyil’s property.

Justice Donovan did not specifically designate any of the awards in the Judgment as alimony or maintenance. He classified a monetary award to Mariamma as child support.

On August 8, 1991, shortly after the Findings and Judgment were entered by the state court, Kavanakudiyil filed a voluntary petition with this court under Chapter 7 of the United States Bankruptcy Code and a trustee was duly appointed to administer the estate in bankruptcy. Mariamma then commenced an action against Kavana-kudiyil to declare that his obligations under the Judgment are nondischargeable debts pursuant to 11 U.S.C. § 523(a)(5) and to declare that the liens executed in connection with the Judgment are valid and unavoidable judicial liens on the debtor’s property. Kavanakudiyil concedes that the awards to Mariamma which are classified as child support are nondischargeable *601 debts pursuant to 11 U.S.C. § 523(a)(5). However, he argues that the remaining obligations are dischargeable under 11 U.S.C. § 727

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Bluebook (online)
143 B.R. 598, 1992 Bankr. LEXIS 1064, 1992 WL 166020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kavanakudiyil-v-kavanakudiyil-in-re-kavanakudiyil-nysb-1992.