Mani v. Mani

869 A.2d 904, 183 N.J. 70, 2005 N.J. LEXIS 298
CourtSupreme Court of New Jersey
DecidedApril 6, 2005
StatusPublished
Cited by100 cases

This text of 869 A.2d 904 (Mani v. Mani) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mani v. Mani, 869 A.2d 904, 183 N.J. 70, 2005 N.J. LEXIS 298 (N.J. 2005).

Opinions

Justice LONG

delivered the opinion of the Court.

The appeal in this family law case presents the issue of whether marital fault is a factor in the determination of alimony and the award of counsel fees. We hold that marital fault is irrelevant to alimony except in two narrow instances: eases in which the fault has affected the parties’ economic life and cases in which the fault so violates societal norms that continuing the economic bonds between the parties would confound notions of simple justice. The former may be considered in the calculation of alimony and the latter in connection with the initial determination of whether alimony should be allowed at all. We likewise hold that marital fault is irrelevant to a counsel fee award.

[73]*73I

The facts and procedures that gave rise to this appeal are as follows: Plaintiff, Brenda Mani and defendant, James Mani met in 1970 when she went to work for him in his seasonal amusement business on the Seaside Heights boardwalk. James, a college graduate, was at the time, a half-owner of the boardwalk business and a partner in a travel agency in Florida that later failed; Brenda was a college student. Brenda graduated in 1971 and taught preschool for two years while working with James at his business during the summer.

Before the parties were married in 1973, they purchased their first home at 400 Lexington Avenue in Toms River for $30,000. They jointly contributed $5,000 or $6,000 out of profits from the boardwalk business to buy the property. The balance of the purchase price was financed by a $25,000 mortgage held by Brenda’s father. The house was purchased in Brenda’s name with the intention that it would be used as the marital home.

After their wedding, the parties, who have no children, worked full time together “side by side” at the boardwalk business 100 hours a week, from Memorial Day through Labor Day each year. They also worked weekends in the fall, over Christmas, and in the late spring but spent the remaining months at trade shows or vacationing in Florida and Mexico.

During the early years of the marriage, Brenda’s father gave her and her siblings significant gifts of money and investments, including checks for $10,000 a year. Brenda also received tax-free bonds from her father, which, per her father’s instructions, were always kept solely in her name.

In 1981, Brenda received a gift of stock from her father in a family-owned business, Ultimate Corporation, that later traded publicly. As a condition of the Ultimate stock gift, Brenda’s father required each of his children and their spouses to sign a waiver stating that the spouses were not entitled to share in the stock. Over the years, the stock rose in value and split several [74]*74times, eventually appreciating to $1.7 million in 1991. Brenda’s investment income was needed to pay for the couple’s expenses because income from the boardwalk business was not enough to support their comfortable lifestyle.

At some point Brenda began to sell her shares of Ultimate stock and, with the proceeds, purchased tax-free bonds in her own name. According to Brenda, she made those stock sales under the direction and advice of her father. Although she discussed her investments with James, Brenda testified that she made all final decisions about investing only after speaking with her broker and financial adviser. James, on the other hand, claimed that he was a knowledgeable investor whose ideas were the impetus for the stock sales.

In the early 1980’s, Brenda’s father formed a partnership called BAS for his five children and made investments of bonds and stocks in the BAS account. Every year, Brenda received roughly $40,000 from the partnership and the parties used that money for living expenses. In 1987, Brenda liquidated her interest in BAS in an amount just over $500,000, which she then placed in a stock account. Again, the parties dispute the role of James’s financial advice in Brenda’s decision to liquidate the stock.

In 1986, the parties purchased a second home in Toms River for $145,000 using proceeds from Brenda’s Ultimate Stock and $129,000 from the sale of the Lexington Avenue house. That property, at 22 Central Avenue, was conveyed to the parties as husband and wife. Later, title was transferred to Brenda. The parties razed the existing house on that lot and built another in its place, ultimately spending between $500,000 and $750,000 in improvements on a lavish new home.

In addition to the house on Central Avenue, Brenda purchased vacation and rental properties in Florida with funds generated from her investments. She testified that the Florida properties were ultimately a financial loss and that, as a result, she sold them to pay her mortgage.

[75]*75In 1993, when they were in their 40’s, the parties retired from the boardwalk business and lived, in the words of the trial judge, an “extravagant” lifestyle almost exclusively out of Brenda’s investment income. According to the parties, the monthly budgetary expenses of their household ranged from $7,360 to $13,143. Following the conclusion of the boardwalk operation, James, who had obtained a real estate license in Florida, worked briefly for real estate brokers. Although he provided a few referrals, he never showed a property for the firms and earned only about $20,000 in income in all.

The couple spent seven years together in retirement before Brenda discovered that her husband was having an affair with a woman with whom the parties socialized. Brenda filed a complaint for divorce alleging adultery and extreme cruelty. The trial judge granted James’s motion for pendente lite relief, awarding $1,006 per week as spousal support and $7,000 as counsel fees, subject to allocation at the time of the final hearing.

The ease proceeded to trial. James claimed entitlement to a permanent alimony award of $68,320 per year and Brenda sought to deny alimony altogether. By the time of trial, Brenda’s investment assets were valued at $2.4 million. James’s assets consisted of an IRA with a value of $80,000 as of 1999. He also had a partial interest in accounts held jointly by the couple and a shared interest in property from his father’s estate valued at $50,000.

The trial judge determined that the property at 22 Central Avenue, which at the time of trial was under contract for sale for $500,000, was subject to equitable distribution but that Brenda’s remaining assets were immune.

With regard to Central Avenue, the judge determined that James was entitled to thirty percent of the net proceeds ($141,-000). In immunizing Brenda’s remaining assets from distribution, the judge found that James’s investment advice was “of little significance and import” and that it did not contribute to the growth of Brenda’s assets. The judge also denied James’s request for counsel fees.

[76]*76With respect to alimony, the judge awarded James $610 per week based “in substantial part on the defendant’s economic dependency.” In reaching that conclusion, the judge attributed to James the ability to earn a minimum of $25,000 annually and denominated the alimony award as necessary to maintain the marital standard of living.

James appealed, claiming that the alimony award was insufficient to maintain the marital standard. He contended that even with the additional $25,000 earning capacity attributed to him by the trial judge, he would still be $4,000 short each month in meeting his self-described budgetary needs.

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Cite This Page — Counsel Stack

Bluebook (online)
869 A.2d 904, 183 N.J. 70, 2005 N.J. LEXIS 298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mani-v-mani-nj-2005.