Michael J. Burke v. Tara H. Burke
This text of Michael J. Burke v. Tara H. Burke (Michael J. Burke v. Tara H. Burke) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-0180-23
MICHAEL J. BURKE,
Plaintiff-Appellant/ Cross-Respondent,
v.
TARA H. BURKE,
Defendant-Respondent/ Cross-Appellant. __________________________
Argued October 1, 2025 – Decided May 28, 2026
Before Judges Berdote Byrne and Jablonski.
On appeal from the Superior Court of New Jersey, Chancery Division, Family Part, Morris County, Docket No. FM-14-0361-20.
John E. Clancy argued the cause for appellant/cross- respondent (Townsend Tomaio Newmark & Clancy, LLC, attorneys; John E. Clancy, on the briefs).
Lizanne J. Ceconi argued the cause for respondent/cross-appellant (Javerbaum Wurgaft Hicks Kahn Wikstrom & Sinins, attorneys; Lizanne J. Ceconi and Elissa W. LeVine, on the briefs). PER CURIAM
In these cross-appeals, plaintiff Michael J. Burke and defendant Tara H.
Burke each appeal from the Judgment of Divorce (JOD) entered after trial and
subsequent reconsideration motions. Prior to trial, the parties were able to
amicably resolve many of their claims, including the majority of custody and
parenting time issues, and the bulk of equitable distribution. The issues
remaining for trial included the equitable distribution of one savings account
(Capital One account), calculation of alimony, and calculation of child support,
which was made difficult due to plaintiff's variable, commission-based earnings,
which had risen sharply following the parties' separation. Following a multi-
day trial at which only the parties testified, the court issued a JOD and
comprehensive statement of reasons.
Plaintiff challenges numerous aspects of the court's orders, claiming the
trial court erred in: 1) finding the proceeds of the Capital One account were
inherited by defendant and exempt from equitable distribution; 2) setting
alimony in the amount of $7,000 per month; 3) establishing child support in the
amount of $2,200 per month; 4) failing to retroactively decrease his pendente
lite support obligations; 5) awarding attorney's fees to defendant; and 6)
ordering, post-litigation, defendant's buy-out obligation of plaintiff's interest in
A-0180-23 2 the marital home conditioned upon plaintiff's completion of six months of
support payments. In her cross-appeal, defendant challenges the court's order
denying: 1) support retroactive to the date of the parties' separation; and 2) the
creation of a support trust funded by the buy-out of the marital home.
We largely affirm the trial court's orders but agree with plaintiff that there
are two critical omissions in the court's otherwise detailed analysis. The court
did not numerically quantify the marital standard of living and did not state the
specific income it imputed to each party. Because of these omissions, we are
constrained to remand this matter to the trial court to expand its findings by
quantifying the marital standard of living, setting forth the income imputed to
each party, and explaining its specific reasons for assigning alimony in the
amount of $7,000 per month and child support in the amount of $2,200 per
month.
I.
The parties were married on October 20, 2001. There are three children
born of the marriage. Plaintiff left the marital home in March 2019. On October
2, 2019, plaintiff filed for divorce. On February 22, 2021, defendant moved for
a pendente lite order to establish various support obligations. Plaintiff cross-
moved for various relief, including establishment of a litigation trust . The trial
A-0180-23 3 court entered an interim order requiring plaintiff to pay $6,320 twice a month
($151,680 per year in unallocated pendente lite support) but otherwise denied
the bulk of the requested relief.
In June 2021, defendant moved to enforce litigant's rights for plaintiff's
failure to maintain insurance. In August 2021, the court found plaintiff in
violation of litigant's rights and awarded attorney's fees to defendant.
On July 7, 2022, plaintiff moved, relevant to this appeal, to reduce his
pendente lite support obligation to $100,000 per year and to compel defendant
to establish a litigation fund from the Capital One account, which plaintiff
characterized as a joint, marital account. Defendant cross-moved for an order
compelling plaintiff to comply with his support obligations and pay his
arrearages. In November 2022, the court denied all motions except to order
plaintiff to pay $18,900 in arrears.
The case was tried over five days in January 2023. On June 13, 2023, the
court issued the JOD equitably distributing the parties' remaining property,
setting alimony, child support, and related support obligations, and awarding
limited attorney's fees to defendant.
Defendant filed a motion for reconsideration, requesting her obligation to
buy out plaintiff's equitable share of the marital home be stayed until plaintiff
A-0180-23 4 had successfully made six months of support payments and satisfied any arrears.
She also requested, upon completion of the buy-out, the funds owed to plaintiff
not be disbursed to him but rather deposited into a trust to guarantee the
satisfaction of his support obligation to the parties' children. Plaintiff cross -
moved for assorted relief related to the marital assets, particularly the marital
home, and his support obligations. After a hearing, the trial court granted
defendant's request to condition the buy-out on six months of support payments
but denied all other relief.
The parties both appealed the motions for reconsideration and the JOD.
The trial court entered an order staying enforcement of alimony pending appeal.
II.
The facts are well known to these parties. We derive the salient facts from
the voluminous record before us, including the trial transcript, and various pre -
and post-trial submissions to the Family Part. Prior to their marriage, defendant
worked as an accountant, and plaintiff sold financial products. The parties' first
child, a college freshman at the time of the divorce, was born in June 2004.
Their second child, a high school student at the time of trial, was born in June
2007. The parties' third child, a middle school student at the time of trial, was
A-0180-23 5 born August 2009. When defendant's office closed and she was laid off in 2011,
the parties agreed she would stay home full time to care for the children.
On January 28, 2014, defendant's mother died, leaving defendant as her
only heir. Through a trust, she passed her estate to defendant expressly
excluding plaintiff from any inheritance. The estate included stock, investment
accounts, retirement instruments, and real property. After inheriting the estate,
defendant sold her mother's home and deposited the proceeds—approximately
$330,000—into the Capital One account.
In 2018, defendant returned to work. Defendant testified she had begun a
teaching certification program as early as 1997 but never finished. In 2018, she
Free access — add to your briefcase to read the full text and ask questions with AI
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-0180-23
MICHAEL J. BURKE,
Plaintiff-Appellant/ Cross-Respondent,
v.
TARA H. BURKE,
Defendant-Respondent/ Cross-Appellant. __________________________
Argued October 1, 2025 – Decided May 28, 2026
Before Judges Berdote Byrne and Jablonski.
On appeal from the Superior Court of New Jersey, Chancery Division, Family Part, Morris County, Docket No. FM-14-0361-20.
John E. Clancy argued the cause for appellant/cross- respondent (Townsend Tomaio Newmark & Clancy, LLC, attorneys; John E. Clancy, on the briefs).
Lizanne J. Ceconi argued the cause for respondent/cross-appellant (Javerbaum Wurgaft Hicks Kahn Wikstrom & Sinins, attorneys; Lizanne J. Ceconi and Elissa W. LeVine, on the briefs). PER CURIAM
In these cross-appeals, plaintiff Michael J. Burke and defendant Tara H.
Burke each appeal from the Judgment of Divorce (JOD) entered after trial and
subsequent reconsideration motions. Prior to trial, the parties were able to
amicably resolve many of their claims, including the majority of custody and
parenting time issues, and the bulk of equitable distribution. The issues
remaining for trial included the equitable distribution of one savings account
(Capital One account), calculation of alimony, and calculation of child support,
which was made difficult due to plaintiff's variable, commission-based earnings,
which had risen sharply following the parties' separation. Following a multi-
day trial at which only the parties testified, the court issued a JOD and
comprehensive statement of reasons.
Plaintiff challenges numerous aspects of the court's orders, claiming the
trial court erred in: 1) finding the proceeds of the Capital One account were
inherited by defendant and exempt from equitable distribution; 2) setting
alimony in the amount of $7,000 per month; 3) establishing child support in the
amount of $2,200 per month; 4) failing to retroactively decrease his pendente
lite support obligations; 5) awarding attorney's fees to defendant; and 6)
ordering, post-litigation, defendant's buy-out obligation of plaintiff's interest in
A-0180-23 2 the marital home conditioned upon plaintiff's completion of six months of
support payments. In her cross-appeal, defendant challenges the court's order
denying: 1) support retroactive to the date of the parties' separation; and 2) the
creation of a support trust funded by the buy-out of the marital home.
We largely affirm the trial court's orders but agree with plaintiff that there
are two critical omissions in the court's otherwise detailed analysis. The court
did not numerically quantify the marital standard of living and did not state the
specific income it imputed to each party. Because of these omissions, we are
constrained to remand this matter to the trial court to expand its findings by
quantifying the marital standard of living, setting forth the income imputed to
each party, and explaining its specific reasons for assigning alimony in the
amount of $7,000 per month and child support in the amount of $2,200 per
month.
I.
The parties were married on October 20, 2001. There are three children
born of the marriage. Plaintiff left the marital home in March 2019. On October
2, 2019, plaintiff filed for divorce. On February 22, 2021, defendant moved for
a pendente lite order to establish various support obligations. Plaintiff cross-
moved for various relief, including establishment of a litigation trust . The trial
A-0180-23 3 court entered an interim order requiring plaintiff to pay $6,320 twice a month
($151,680 per year in unallocated pendente lite support) but otherwise denied
the bulk of the requested relief.
In June 2021, defendant moved to enforce litigant's rights for plaintiff's
failure to maintain insurance. In August 2021, the court found plaintiff in
violation of litigant's rights and awarded attorney's fees to defendant.
On July 7, 2022, plaintiff moved, relevant to this appeal, to reduce his
pendente lite support obligation to $100,000 per year and to compel defendant
to establish a litigation fund from the Capital One account, which plaintiff
characterized as a joint, marital account. Defendant cross-moved for an order
compelling plaintiff to comply with his support obligations and pay his
arrearages. In November 2022, the court denied all motions except to order
plaintiff to pay $18,900 in arrears.
The case was tried over five days in January 2023. On June 13, 2023, the
court issued the JOD equitably distributing the parties' remaining property,
setting alimony, child support, and related support obligations, and awarding
limited attorney's fees to defendant.
Defendant filed a motion for reconsideration, requesting her obligation to
buy out plaintiff's equitable share of the marital home be stayed until plaintiff
A-0180-23 4 had successfully made six months of support payments and satisfied any arrears.
She also requested, upon completion of the buy-out, the funds owed to plaintiff
not be disbursed to him but rather deposited into a trust to guarantee the
satisfaction of his support obligation to the parties' children. Plaintiff cross -
moved for assorted relief related to the marital assets, particularly the marital
home, and his support obligations. After a hearing, the trial court granted
defendant's request to condition the buy-out on six months of support payments
but denied all other relief.
The parties both appealed the motions for reconsideration and the JOD.
The trial court entered an order staying enforcement of alimony pending appeal.
II.
The facts are well known to these parties. We derive the salient facts from
the voluminous record before us, including the trial transcript, and various pre -
and post-trial submissions to the Family Part. Prior to their marriage, defendant
worked as an accountant, and plaintiff sold financial products. The parties' first
child, a college freshman at the time of the divorce, was born in June 2004.
Their second child, a high school student at the time of trial, was born in June
2007. The parties' third child, a middle school student at the time of trial, was
A-0180-23 5 born August 2009. When defendant's office closed and she was laid off in 2011,
the parties agreed she would stay home full time to care for the children.
On January 28, 2014, defendant's mother died, leaving defendant as her
only heir. Through a trust, she passed her estate to defendant expressly
excluding plaintiff from any inheritance. The estate included stock, investment
accounts, retirement instruments, and real property. After inheriting the estate,
defendant sold her mother's home and deposited the proceeds—approximately
$330,000—into the Capital One account.
In 2018, defendant returned to work. Defendant testified she had begun a
teaching certification program as early as 1997 but never finished. In 2018, she
accepted a position as a paraprofessional in a school, initially earning $20 per
hour. During the 2019-2020 school year, she worked full time with a salary of
$21,000. Also beginning in 2019, defendant worked toward her teaching
certification and master's degree in special education, both of which she received
in 2022. At the time of trial, she was working full time as a teacher with a salary
of $63,181.
In the years surrounding their separation, plaintiff moved between several
employers. In 2017, he sold mortgages for Eagle Home Mortgage, where his
A-0180-23 6 combined salary and commission resulted in earnings of $530,556. 1 Plaintiff
moved to Mortgage Network in the same capacity, where he earned $497,193 in
2018 and $509,593 in 2019. In early 2020, plaintiff moved to New Jersey
Lenders, where he earned $655,286. In 2021, while still at New Jersey Lenders,
plaintiff earned $804,521. In mid-2022, plaintiff left New Jersey Lenders for
Draper and Kramer, another mortgage issuer, where he became a regional
manager. He was paid a salary of $100,000 per year, with the bulk of his
remuneration coming in the form of commissions. Although complete data for
2022 was not available at the time of trial, the parties stipulated plaintiff's total
earned income through December 15 was $381,712. Plaintiff explained the
changes in his income were due to market conditions, most notably changes in
interest rates.
On March 26, 2021, the court issued an order establishing plaintiff's
pendente lite support obligations, including $12,640 in unallocated support
payments twice a month, a sixty-percent share of the children's medical
expenses, and the maintenance of several insurance policies. Also in August
2021, plaintiff moved in with his girlfriend. His case information statement
(CIS) alleged he paid rent to her, as well as utilities, and paid for repairs and
1 The parties stipulated to these figures for the purpose of trial. A-0180-23 7 improvements to her property. Around the same period, he purchased a
WaveRunner, a boat, and furniture for a house she owned at the New Jersey
shore.
In July 2022, plaintiff filed a motion to reduce his pendente lite obligation,
arguing, among other things, the court's calculations were based on
"unexpectedly good years" but the subsequent "hike in interest rates and the
impending recession" had substantially lowered his income. The court denied
the motion, explaining the support obligations had been based on a multi-year
average of annual income of $500,000, the "marital status quo" to which plaintiff
had stipulated for the purpose of the motion. That figure was lower than the
"good years" in which plaintiff had earned $600,000-$800,000, allowing those
excessive earnings to carry him through leaner years, and the anticipated
downturn in the mortgage market was speculative. At the time, plaintiff had
accumulated $18,900 in support arrears related to medical expenses, which the
court had ordered him to pay.
Prior to trial in January 2023, the parties entered into several stipulations.
Relevant to this appeal, the parties stipulated defendant had a previous career as
an accountant that terminated in 2011, and her current salary as an educator was
$63,181. The parties also stipulated that plaintiff's earnings were largely based
A-0180-23 8 on commission and varied from $497,193 in 2018, to $804,521 in 2021.
Regarding assets, the parties agreed defendant would have the right to remain in
the marital home with the children and buy out plaintiff's interest. They also
agreed defendant would retain numerous inherited accounts and financial assets,
worth approximately $624,910, and each party would retain their own retirement
accounts and certain banking accounts. Only the Capital One account , and two
additional accounts into which defendant had later transferred its contents,
remained in dispute.
The trial proceeded over five days, with only the parties testifying. On
June 13, 2023, the court issued an opinion and order and entered the JOD. The
court explained, based on the "extensive testimony by each party and a detailed
review" of the evidence, it did "not find [plaintiff] to be entirely credible." The
court identified "a few of the numerous examples" of plaintiff's "lack of
credibility and transparency," including—among other things—failure to advise
the court of important financial information, purported unawareness of his own
expenditures, and a tension between his claim that he could not afford to support
his dependents while he simultaneously indulged in substantial recreational
spending. The court found defendant more credible, based on her "calm
demeanor," "attempts to answer questions directly," the detailed financial
A-0180-23 9 records she supplied, and the consistency between her testimony and
documentary evidence.
The court held the proceeds of the Capital One account were exempt from
equitable distribution. It ordered plaintiff to pay $7,000 per month in alimony
for a term of thirteen years, and pay $2,200 per month in child support, in
addition to arrears which as of January 31, 2023 had grown to $19,073. The
court denied both parties' request for retroactive adjustment of the pendente lite
support, denied defendant's request for the establishment of a trust to serve the
children's medical and educational needs, and gave defendant sixty days to
complete the buy-out of the marital home. Finally, it awarded defense counsel
fees in the amount of $44,000.
The parties both cross-moved for reconsideration and modification of
certain parts of the JOD, primarily relating to the buy-out of the marital home.
The court granted defendant's request to condition the buy-out upon completion
of six months of timely support payments by plaintiff and ordered plaintiff to
make all outstanding payments and reimbursements, including support arrears
that had grown to $54,635 by August 2023, but allowed the amount to be
deducted from the eventual buy-out proceeds. Otherwise, the court largely
denied substantive relief.
A-0180-23 10 III.
"Our review of Family Part orders is limited." Gormley v. Gormley, 462
N.J. Super. 433, 442 (App. Div. 2019). "We 'afford substantial deference to the
Family Part's findings of fact because of that court's special expertise in family
matters.'" Voynick v. Voynick, 481 N.J. Super. 207, 220-21 (App. Div. 2025)
(quoting W.M. v. D.G., 467 N.J. Super. 216, 229 (App. Div. 2021)). Thus, a
court's findings "are binding on appeal so long as [its] determinations are
'supported by adequate, substantial, credible evidence.'" Gormley, 462 N.J.
Super. at 442 (quoting Cesare v. Cesare, 154 N.J. 394, 411-12 (1998)). A family
court's legal determinations, however, are afforded no particular deference and
are reviewed de novo. Amzler v. Amzler, 463 N.J. Super. 187, 197 (App. Div.
2020) (citing McGovern v. Rutgers, 211 N.J. 94, 108 (2012)).
IV.
A. Equitable Distribution of the Capital One Account Proceeds.
Regarding the equitable distribution of assets, N.J.S.A. 2A:34-23(h)(1)
provides:
[I]n all actions where a judgment of divorce . . . is entered the court may make such award or awards to the parties, in addition to alimony and maintenance, to effectuate an equitable distribution of the property, both real and personal, which was legally and
A-0180-23 11 beneficially acquired by them or either of them during the marriage or civil union.
In considering equitable distribution, the court must follow the three -step
process first articulated in Rothman v. Rothman, 65 N.J. 219, 232 (1974):
Assuming that some allocation is to be made, [the trial judge] must first decide what specific property of each spouse is eligible for distribution. Secondly, [the judge] must determine its value for purposes of such distribution. Thirdly, [the judge] must decide how much allocation can most equitably be made.
It is a rebuttable presumption that assets acquired during the marriage are
subject to equitable distribution. It is the burden of the party asserting
exemption to come forward with evidence to rebut that presumption. Painter v.
Painter, 65 N.J. 196, 214 (1974); Landwehr v. Landwehr, 111 N.J. 491, 504
(1988); Orgler v. Orgler, 237 N.J. Super. 342, 351 (App. Div. 1989). Before the
trial court undertakes to equitably distribute property, it "must first decide what
specific property of each spouse is eligible for distribution." Rothman, 65 N.J.
at 232.
Inheritances are not considered marital property and are generally
excluded from equitable distribution. N.J.S.A. 2A:34-23; Scavone v. Scavone,
230 N.J. Super. 482 (Ch. Div. 1988), aff'd, 243 N.J. Super. 134 (App. Div.
1990). Crucially, the comingling of exempt funds is not, without more, enough
A-0180-23 12 to establish an interspousal gift nor to render otherwise exempt property
distributable. Dotsko v. Dosko, 244 N.J. Super. 668, 674 (App. Div. 1990);
Wadlow v. Wadlow, 200 N.J. Super. 372, 380-81 (App. Div. 1985).
Additionally, it is evident from Rothman that a split of marital assets is
not the presumptive starting point; each award varies depending on the
circumstances specific to the case. N.J.S.A. 2A:34-23-1 sets forth the statutory
factors consistent with Rothman and Painter. The philosophy underscored in
the statute is based upon a partnership concept in which both parties contributed
to the accumulation of marital assets, although rarely in equal measure. Tucker
v. Tucker, 121 N.J. Super. 539, 545 (Ch. Div. 1972).
The disputed property in this case is comprised of the proceeds of the sale
of defendant's mother's home, kept in the Capital One account. Defendant's
mother passed away in January 2014. Through a trust, she willed her property
to defendant and any "descendants who survive her," but expressly excluded
plaintiff. Defendant testified that near the end of her life, her mother told
plaintiff she did not want him to have any of her money. According to
defendant, plaintiff told her: "Relax, I make plenty of money. I'm not taking
your money."
A-0180-23 13 Defendant sold her childhood residence and deposited the proceeds of the
sale into the Capital One account. A July 2014 account statement reflecting the
deposit was addressed to defendant but listed plaintiff as a "joint name" on the
account. Defendant testified, at the time, she did not believe the account was a
joint account and the parties had never shared a joint savings account. The 1099
forms regarding the account were in her name alone and bore her social security
number, and not plaintiff's.
Plaintiff testified that when defendant first opened the account many years
before, defendant told him that she was opening a joint account. However, he
acknowledged he did not participate in opening the account, had never made a
withdrawal from the account prior to filing for divorce, and did not k eep track
of specific funds because he "didn't handle the money."
In June 2019, after plaintiff had moved out of the marital home but before
he filed for divorce, defendant transferred $330,000 out of the Capital One
account into two other accounts. When she did, she received a message from
plaintiff asking if she was "moving $$$ around." According to defendant, this
exchange alerted her "this was a joint account" for the first time, since she had
opened and managed the account online and "online it did not show [plaintiff's]
name."
A-0180-23 14 On April 27, 2020, plaintiff withdrew, for the first time, approximately
$12,500 from the account without the consent of defendant, to satisfy his counsel
fees and his share of a mediation retainer. At trial, plaintiff admitted the only
legal bill he paid was approximately $10,000.
The trial court ruled the funds from the Capital One account would be
retained by defendant and were not subject to equitable distribution. It found
plaintiff not credible with respect to his testimony regarding the Capital One
account. The court found plaintiff's stipulation, "the bulk" of defendant's
inherited funds were exempt from distribution and his knowledge that his
mother-in-law had wished to exclude him from any access to the funds, resolved
the issue. The court highlighted plaintiff's acknowledgment he had never looked
at the account prior to the $12,500 withdrawal and the purported reason for that
withdrawal—paying legal fees—appeared contrary to the evidence, which
further undermined his position.
On appeal, plaintiff asserts, regardless of whether some of the funds in the
account came from defendant's inheritance, they were sufficiently comingled
with marital funds to render them distributable. We agree with the trial court’s
finding that the account was created by defendant "separately with the stated
intent to preserve these funds, inherited from her mother's estate, as separate
A-0180-23 15 property" and defendant did not intend to allow the funds to become de facto
marital assets.
We have previously disposed of the notion that extended intermingling of
exempt funds and marital funds is enough to destroy the exemption. See
Wadlow, 200 N.J. Super. at 380 ("Although these funds were commingled
during the parties' cohabitation," so thoroughly that they "could not be traced,"
the court "perceive[d] a clearly manifested and unequivocal intent that they
belonged to plaintiff and would ultimately be returned to her or her family.")
Given the abundance of credible evidence in the record, we discern no reason to
disturb the trial court's ruling.
B. Calculation of the Parties' Income.
The court discussed each party's finances, noting the plaintiff's stipulated
income history and contrasting it with defendant's salary of $63,181 as a teacher.
It observed plaintiff had conceded his average income in the two years prior to
separation had been $500,000 and his income in the two years following the
separation had been $655,286 and $804,521, although it had subsequently fallen
to $381,712 in 2022. Plaintiff contended he should be imputed an income of
$400,000 based on his anticipation of changes in mortgage rates that would
decrease his earnings in the coming years; defendant argued he should be
A-0180-23 16 imputed income at $510,000 annually. The trial court did not expressly state in
its order what income it imputed to plaintiff, however, previously, for the
purpose of pendente lite support, the court had imputed an income of
approximately $500,000 to plaintiff, based on his 2017-2019 earnings.
In cases of variable income, we have consistently approved of the practice
of using an average income in calculating support obligations. Gormley, 462
N.J. Super. at 446-47 (approving averaging where a commission-based job
earned a party between $92,000 and $150,000 yearly).
Crucially, this average "must include the years after a complaint is filed
and before a divorce is finalized" in addition to the years prior to the complaint.
Gormley, 462 N.J. Super. at 447-48 (disapproving of an average that considered
only income levels during the marriage). This is so because, while a party's
post-separation income is irrelevant to assessing the standard of living that
existed during the marriage, it is indispensable in assessing the party's ability to
maintain that standard, and to meet any support obligations. Ibid. Thus, while
"averaging is normally done, in appropriate cases, over a three-year period," it
has been extended over a longer period to include the years both before and after
the divorce filing. Platt v. Platt, 384 N.J. Super. 418, 426-27 (App. Div. 2006)
(approving of a five-year average). The "[i]mputation of income is a
A-0180-23 17 discretionary matter" that may turn on the court's "credibility findings" and is
reviewed for abuse of discretion. Elrom v. Elrom, 439 N.J. Super. 424, 434
(App. Div. 2015).
From the 2017 through 2022 income evidence presented at trial, plaintiff
earned $3,378,871, which, when averaged over the six-year period, resulted in
an approximate annual income of $563,145. If the court took an average of the
last three years, plaintiff earned an average of $613,839. Because the court did
not set forth the specific imputation of income to plaintiff, we remand to the trial
court for an explanation of the specific numerical imputation of plaintiff's
income it used in calculating plaintiff's support obligations.
Plaintiff argues defendant should have been imputed an income higher
than the $63,181 she earns as a teacher. He claims he presented evidence of
approximately $20,000 in passive income and potential income from summer
employment. As the court did not set forth the amount it attributed as income
to defendant, we likewise remand to the trial court for an explanation of the
specific numerical imputation of defendant's income it used in arriving at the
support calculations.
A-0180-23 18 C. Calculation of Alimony.
We begin our analysis with an overview of the law regarding alimony.
"Alimony is an 'economic right that arises out of the marital relationship and
provides the dependent spouse with a level of support and standard of living
generally commensurate with the quality of economic life that existed during
the marriage.'" Quinn v. Quinn, 225 N.J. 34, 48 (2016) (quoting Mani v. Mani,
183 N.J. 70, 80 (2005)) (internal quotation marks omitted). "Alimony is neither
a punishment for the payor nor a reward for the payee. Nor should it constitute
a windfall for any party." Aronson v. Aronson, 245 N.J. Super. 354, 364 (1991).
It is a right relative to the parties' economic standards established during the
marriage as far as their economic circumstances will allow post-divorce. Ibid.
"The award of [a]limony in New Jersey is primarily governed by statute."
Voynick, 481 N.J. Super. at 224 (alteration in original) (quoting Landers v.
Landers, 444 N.J. Super. 315, 320 (App. Div. 2016)) (internal quotation). In
2014, our Legislature amended the alimony statute set forth at N.J.S.A. 2A:34 -
23. Specifically, the Legislature replaced "permanent alimony" with "open
durational alimony," and limited the length of payments for couples married
fewer than twenty years. N.J.S.A. 2A:34-23(b). Critically, it also declared no
A-0180-23 19 one party has a greater right to the marital standard of living. N.J.S.A. 2A:34 -
23(b)(4).
Among the general considerations bearing on an economically dependent
spouse's support is that spouse's ability to meet his or her financial needs, Lepis
v. Lepis, 83 N.J. 139, 152 (1980), and to adequately save for his or her
retirement. See Voynick, 481 N.J. Super. at 232. Therefore, any income a
dependent spouse derives from active employment or passive assets is crucial to
the evaluation of need. Aronson, 245 N.J. Super. at 364. "This is true whether
the spouse chooses to actually receive the income or whether, at his or her
option," it is reinvested. Ibid. The issue is not actual receipt of funds but access
to them. Id. at 364-65.
Because the intention of alimony is to assist the supported spouse in
achieving an economic level enjoyed by the couple during the marriage, it is
axiomatic the supported spouse is not entitled to an amount of alimony above
which, when joined with his or her other income, would exceed the prior marital
standard of living, regardless of the supporting spouse's post-divorce economic
success. See Lombardi v. Lombardi, 447 N.J. Super. 26, 40-41 (App. Div.
A-0180-23 20 2016).2 Likewise, if the supported spouse's post-divorce economic success
renders him or her capable of meeting the marital standard of living without the
supporting spouse's support, alimony is no longer warranted.
In many marriages, the parties recognize "the practical impact of the
parties' need for separate residences and the attendant increase in living
expenses on the ability of both parties to maintain a standard of living reasonably
comparable to the standard of living established in the marriage." N.J.S.A.
2A:34-23(c). Where the marital standard of living cannot be achieved for both
parties, the trial court must fashion an alimony award that reaches equipoise to
both parties below that standard, taking into account all of the factors set forth
in the alimony statute. With this legal framework in mind, we address the
parties' contentions on appeal.
Plaintiff argues the alimony award of $7,000 per month for a term of
thirteen years must be vacated because the court failed to "numerically quantify
the marital lifestyle" and erred in its analysis of each party's ability to replicate
2 In this regard, alimony differs from child support because children are entitled to share in the increases of income from their parents. See Strahan v. Strahan, 402 N.J. Super. 298, 306 (App. Div. 2008) ("Children are entitled to not only bare necessities, but a supporting parent has the obligation to share with his children the benefit of [their] financial achievement." (quoting Isaacson v. Isaacson, 348 N.J. Super. 560, 580 (App. Div. 2002))).
A-0180-23 21 that lifestyle. He contends this court should "remand for a quantification of the
lifestyle, and for an ability to pay analysis."
N.J.S.A. 2A:34-23(b) provides that the court is required to consider:
(1) The actual need and ability of the parties to pay;
(2) The duration of the marriage or civil union;
(3) The age, physical and emotional health of the parties;
(4) The standard of living established in the marriage or civil union and the likelihood that each party can maintain a reasonably comparable standard of living, with neither party having a greater entitlement to that standard of living than the other;
(5) The earning capacities, educational levels, vocational skills, and employability of the parties;
(6) The length of absence from the job market of the party seeking maintenance;
(7) The parental responsibilities for the children;
(8) The time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment, the availability of the training and employment, and the opportunity for future acquisitions of capital assets and income;
(9) The history of the financial or non-financial contributions to the marriage or civil union by each party including contributions to the care and education
A-0180-23 22 of the children and interruption of personal careers or educational opportunities;
(10) The equitable distribution of property ordered and any payouts on equitable distribution, directly or indirectly, out of current income, to the extent this consideration is reasonable, just and fair;
(11) The income available to either party through investment of any assets held by that party;
(12) The tax treatment and consequences to both parties of any alimony award, including the designation of all or a portion of the payment as a non-taxable payment;
(13) The nature, amount, and length of pendente lite support paid, if any; and
(14) Any other factors which the court may deem relevant.
[N.J.S.A. 2A:34-23(b).]
The court is required to "make specific findings on the evidence about all
of the statutory factors" when evaluating an alimony request, even if certain
factors are not applicable. N.J.S.A. 2A:34-23(c). In this case, the court
reviewed all of the statutory factors, sometimes relying on earlier factual
findings made during pre-trial motions, and mirroring conclusions reached in its
prior discussion of equitable distribution.
At trial, defendant sought alimony in the amount of $9,500 per month for
an indeterminate term, while plaintiff suggested $5,833 per month for eight
A-0180-23 23 years. Both parties posited figures for the cost of the joint marital lifestyle.
Defendant testified as to her CISs at length. She explained the sources of data
she drew upon and her method of processing that data to derive total and average
incremental expenditures. This included calculating expenditures for her post -
separation lifestyle using present-day data and for the joint marital lifestyle
using two years of pre-separation data. She concluded, prior to the separation,
the family had spent an average of $5,230 on shelter (Schedule A expenses),
$1,594 on transportation (Schedule B expenses), and $23,225 on personal
expenses (Schedule C expenses). As a result, she quantified the cost of the joint
marital lifestyle for the parties and their children at approximately $30,000 per
month or $360,000 per year.
Plaintiff testified he had relied on the figures defendant had compiled for
the joint marital lifestyle. Despite purportedly relying on the same figures as
defendant, plaintiff quantified the joint marital lifestyle at approximately
$10,000 per month. He calculated shelter expenses at $4,517, transportation at
$1,395, and personal expenses at $5,355 for the family or $135,204 annually.
The court found the parties had "lived an upper-middle-class lifestyle,
including annual vacations like two weeks at the shore, ski trips, and a trip to
Disney." The court concluded defendant's figures were more trustworthy for
A-0180-23 24 several reasons, noting her greater familiarity with the parties' finances and
support by documentary evidence. Although the court reviewed the evidence in
great descriptive detail, it did not state the numerical value it was assigning to
the parties' joint lifestyle. Moreover, the court does not appear to have wholly
adopted defendant's figures, as the overall support awarded would leave a
significant disparity between the parties' post-marital lifestyles. If the court had
accepted defendant's quantification of the cost of the marital lifestyle, i.e.,
approximately $30,000 per month, it is unclear how it could have reached an
alimony award of $7,000 per month and $2,200 in child support. The resultant
award of $9,200 per month is below the $9,500 alimony award originally
defendant proposed. Subtracting plaintiff's estimated personal share of
expenses, child support payments ($2,200), defendant's anticipated monthly
income ($6,900), and separately-ordered payments ($1,320) 3 would leave
defendant with an estimated shortfall of approximately $15,200, more than
double the $7,000 per month awarded. The difference between the numbers
illustrates our difficulty in reviewing the ultimate alimony award in light of the
3 Life insurance ($220) and medical expenses ($1,100), pro-rated to plaintiff's share. College costs, not included in the original marital budget, are excluded.
A-0180-23 25 court's omission to set forth the parties' respective incomes and a numerical
value for the marital lifestyle.
The court found plaintiff's career and demonstrated earning potential
would "certainly enable him to maintain a lifestyle reasonably comparable to
that which he enjoyed during the marriage," but defendant "cannot sustain a
lifestyle remotely comparable to the marital lifestyle on her salary even
considering unearned income" from her equitable distribution. Aggregating
these findings, the court concluded plaintiff's "salary, some of which will be
paid to [defendant] through alimony, coupled with each party's share of
equitable distribution will enable each party to live comfortably post-divorce, if
they make reasonable and proper choices." The award reflects plaintiff will
retain $373,760 in earned gross income if based on an average salary of
$500,000, payment of alimony in the amount of $84,000, child support of
$26,400, life insurance of $2,640, and medical expenses of approximately
$13,200. Defendant will receive $193,000 in gross income from all sources:
$63,000 for teaching, $84,000 in alimony, $20,000 in interest income from
passive assets, and $26,400 in child support. The disparity between $373,760
and $193,000 was not sufficiently explained by the trial court nor is an
A-0180-23 26 explanation given as to why plaintiff appears to receive a greater entitlement to
the marital lifestyle than defendant.
A trial court in a contested matter is required to establish the marital
standard of living. Glass v. Glass, 366 N.J. Super. 357, 371 (App. Div. 2004).
We have emphasized a trial court "must make detailed findings of fact as to the
essential elements of the parties' actual lifestyle, without reliance upon such
vague and subjective terms as 'middle-class,' 'working-class,' or 'upper-class.'"
Weishaus v. Weishaus, 360 N.J. Super. 281, 290-91 (App. Div. 2003), rev'd in
part on other grounds, 180 N.J. 131 (2004). We have previously remanded cases
for a determination of the marital standard when the trial court failed to make
that finding. See Glass, 366 N.J. Super. at 371-72; S.W. v. G.M., 462 N.J. Super.
522, 534 (App. Div. 2020); Murphy v. Murphy, 313 N.J. Super. 575, 581 (App.
Div. 1998). Indeed,
the importance of establishing the standard of living experienced during the marriage cannot be overstated. It serves as the touchstone for the initial alimony award and for adjudicating later motions for modification of alimony award when "changed circumstances" are asserted.
[Crews v. Crews, 164 N.J. 11, 16 (2000).]
The court, despite its detailed findings, did not sufficiently quantify the
marital lifestyle. Its findings did not include a specific figure, or adopt either
A-0180-23 27 party's proposed figure, or explain why it rejected their proposed marital
lifestyle figures.
To be clear, the court is not required to adopt either party's figures.
Likewise, there is no indication the court chose an indefensibly high
quantification that improperly inflated the alimony award. The term of the
limited durational alimony—thirteen years—was within the trial court's
discretion, and we find no basis to disturb it on appeal. Nevertheless, without a
numerical quantification of the marital lifestyle, we are unable to resolve the
issue on appeal and are constrained to remand the matter for more specific
findings as to each party's income and quantification of the marital lifestyle.
1. Retroactive Adjustment of Pendente Lite Support.
Plaintiff and defendant each take issue with the court's failure to
retroactively modify its pendente lite support order. Plaintiff claims the
pendente lite order should have been retroactively reduced to match the support
award in the JOD and he should have received credit for the difference. In a
collateral argument, plaintiff contends the thirteen-year alimony term was too
lengthy given the parties' seventeen-year marriage and the approximately two
years of pendente lite support. He asks us to reduce the length of the term or
"credit" the two years of pendente lite support.
A-0180-23 28 Defendant argues the pendente lite support order should have been made
retroactive to the time between plaintiff's departure from the marital home in
2019 and the entry of the pendente lite order in 2021.
We are not persuaded by either party's arguments. The court is authorized
to order preliminary pendente lite support in order to preserve the status quo
while the litigation is ongoing. N.J.S.A. 2A:34-23; Mallamo v. Mallamo, 280
N.J. Super. 8, 11-12 (App. Div. 1995). Because such orders are, by nature,
preliminary, the accompanying proceedings are truncated, generally comprising
paper submission and oral argument without a plenary hearing. Id. at 12. The
court is often presented with "conflicting" and "incomplete" information and
thus cannot compile the accurate picture of the parties and their finances that
will eventually emerge at trial. Id. at 16.
Given the unavoidably imprecise nature of the proceedings, pendente lite
support orders are "subject to modification prior to entry of final judgment" or
indeed "at the time of final judgment." Id. at 12. If, at the time of trial, the court
determines that its pendente lite order was "'woefully inadequate' or 'obviously
unjust,'" it should modify the order retroactively, in the interest of justice.
Slutsky v. Slutsky, 451 N.J. Super. 332, 369 (App. Div. 2017) (quoting Jacobitti
v. Jacobitti, 263 N.J. Super. 608, 617-18 (App. Div. 1993), aff'd, 135 N.J. 571
A-0180-23 29 (1994)). Thus, if a court finds that the supporting spouse paid too much or too
little in pendente lite support, it may award a credit or adjustment —a "Mallamo
credit"—in the amount of the overpayment or underpayment. J.E.V. v. K.V.,
426 N.J. Super. 475, 491 (App. Div. 2012).
"Any changes in the initial orders rest with the trial judge's discretion"
and are therefore reviewed pursuant to an abuse of discretion standard. Slutsky,
451 N.J. Super. at 368. A court misapplies its discretion "when a decision is
made without a rational explanation, inexplicably departed from established
policies, or rested on an impermissible basis." D.M.C. v. K.H.G., 471 N.J.
Super. 10, 27 (App. Div. 2022) (quoting U.S. Bank Nat'l Ass'n v. Guillaume,
209 N.J. 449, 467-68 (2012)) (internal quotation marks omitted).
On March 26, 2021, the court ordered plaintiff to pay $12,640 per month
pendente lite in unallocated support. The same order required plaintiff to
maintain health insurance and assume sixty percent responsibility for medical
expenses. In the JOD, issued June 13, 2023, the court ordered plaintiff to pay
alimony in the amount of $7,000 per month and child support in the amount of
$2,200 per month, for an aggregate $9,200 per month.
Regarding plaintiff's request, the court explained that "[w]hile the alimony
amount is lower than the pendente lite order provided, this was based on
A-0180-23 30 considerations of equitable distribution and no credit will be due to" plaintiff.
As to defendant's claim, the court explained it considered the alimony and
equitable distribution awards and, in its role as "a court of equity," denied the
request.
On appeal, plaintiff asserts the trial court based its pendente lite award on
his post-separation income of approximately $800,000 and, although that award
was reduced at the time of judgment, the reduction was not rendered retroactive
"despite [p]laintiff's decrease in income." He professes confusion about "why
the date that the trial court entered a [JOD] is the exact, equitable and
appropriate date on which the" reduction should occur. Additionally, plaintiff
accuses the court of being "hyper-focused" on his "enhanced spending post-
complaint and during the time that the pendente[]lite order was in effect,"
arguing his spending was irrelevant.
Contrary to plaintiff's contention, the court was not "penalizing" him for
"spending his income while the pendent[e][]lite support order was in effect."
Rather, the court found spending freely on his own wants while consistently
claiming to be unable to meet his support obligations rendered plaintiff less
credible, as did professing to be unfamiliar with or unable to explain his own
expenditures. While the final alimony and child support in the JOD are
A-0180-23 31 approximately $2,000 lower per month than the pendente lite support, the court
clearly explained the difference was due to the equitable distribution awards that
went into simultaneous effect. We discern no reason to disturb the trial court's
findings declining to grant a retroactive credit to plaintiff.
Defendant contends the voluntary support she received between the
parties' separation in March 2019 and the entry of the pendente lite order in
March 2021 was "woefully inadequate" and she should have received a
retroactive credit commensurate with her actual need.
As previously noted, a court's ability to retroactively modify pendente lite
support is a function of the preliminary, makeshift quality of such orders. See
Mallamo, 280 N.J. Super. at 12. However, because the dependent party may
have personal or tactical reasons for foregoing a motion, we may reasonably
hold litigants responsible for the consequences of their decisions.
First, defendant offers no legal basis for her claim that the court should
have awarded support for the months prior to the filing of divorce. N.J.S.A.
2A:34-23 authorizes the provision of support "[p]ending any matrimonial
action." Before the complaint was filed no action was pending.
Defendant did not seek pendente lite support until sixteen months after
the complaint was filed, on February 22, 2021. According to defendant, plaintiff
A-0180-23 32 had initially chosen to provide thirty-four percent of his net income in support
during that time but eventually switched to providing a flat $3,740 twice a
month. She testified it was this change that prompted her to file for pendente
lite support.
Given defendant's testimony, she did not require pendente lite support any
earlier because she was receiving support during this period, in amounts no less
than $7,480 per month. While that sum may have fallen short of the amount
eventually awarded, it is not low enough to be clearly "'woefully inadequate' or
'obviously unjust.'" Slutsky, 451 N.J. Super. at 369. Because defendant cannot
show the court abused its discretion in denying credits to cover the period before
defendant requested support, we find no error.
2. Calculation of Child Support.
A child's entitlement to their parents' support is "a fundamental interest,"
long recognized by our courts. Bowen v. Gilliard, 483 U.S. 587, 612-13 (1987)
("When parents make a commitment to meet [their parental] responsibilities, the
child has a right to rely on the unique contribution of each parent to material and
emotional support."); Burns v. Edwards, 367 N.J. Super. 29, 39 (App. Div. 2004)
("The principle of child support is engrained into our common law, statutory,
and rule-based jurisprudence."). Moreover, children are entitled to enjoy the
A-0180-23 33 benefits of either parent's post-divorce financial increase. Strahan, 402 N.J.
Super. at 306 (quoting Isaacson, 348 N.J. Super. at 580). By extension,
"children are entitled to have their needs accord with the current standard of
living of both parents." Isaacson, 348 N.J. Super. at 579.
Our court rules provide a set of guidelines, based on judicial policy
combined with economic data, that "shall be applied" to all child support
decisions, absent "good cause." R. 5:6A; Child Support Guidelines, Pressler &
Verniero, Current N.J. Court Rules, Appendix IX-A to R. 5:6A. However,
because the guidelines rely on the availability of reliable economic data, they
are not applicable in "extreme parental income situations," i.e., where a would -
be supporting parent's income falls below 150% of the national poverty line or
above $187,200 per year. Child Support Guidelines, Pressler & Verniero,
Current N.J. Court Rules, Appendix IX-A to R. 5:6A, ¶ 20. Therefore, when
parents' combined income exceeds $187,200, "the court shall apply the
guidelines up to $187,200 and supplement the guidelines-based award with a
discretionary amount based on the remaining family income." Ibid.; see also
Isaacson, 348 N.J. Super. at 581 ("[T]he maximum amount provided for in the
guidelines should be 'supplemented' by an additional award determined through
application of the statutory factors set forth in N.J.S.A. 2A:34-23(a).").
A-0180-23 34 In deciding how to exercise that discretion, the court is guided by statute:
"the court in those cases not governed by court rule shall consider, but not be
limited to," a series of specific factors. N.J.S.A. 2A:34-23(a). These factors
illuminate the current and future needs of the child, juxtaposed with the current
and expected means of the parents:
(1) Needs of the child;
(2) Standard of living and economic circumstances of each parent;
(3) All sources of income and assets of each parent;
(4) Earning ability of each parent, including educational background, training, employment skills, work experience, custodial responsibility for children including the cost of providing child care and the length of time and cost of each parent to obtain training or experience for appropriate employment;
(5) Need and capacity of the child for education, including higher education;
(6) Age and health of the child and each parent;
(7) Income, assets and earning ability of the child;
(8) Responsibility of the parents for the court-ordered support of others;
(9) Reasonable debts and liabilities of each child and parent; and
A-0180-23 35 (10) Any other factors the court may deem relevant.
[Ibid.]
The controlling "goal is to calculate a child support award that is in the best
interest of the child after giving due consideration to the statutory factors and
the guidelines." Caplan v. Caplan, 182 N.J. 250, 272 (2005). So long as these
factors are considered, it is within the trial court's discretion to determine "the
choice of the methodology to employ in arriving at a child support award when
the total income of the parties exceeds the guidelines." Ibid.
Child support awards are left to the sound judgment of the trial court and
reversed only for a misapplication of that discretion. Foust v. Glaser, 340 N.J.
Super. 312, 315-16 (App. Div. 2001) ("The trial court has substantial discretion
in making a child support award. If consistent with the law, such an award will
not be disturbed unless it is manifestly unreasonable, arbitrary, or clearly
contrary to reason or to other evidence, or the result of whim or caprice."
(citations omitted)).
Child support awards for children living at college away from home are
subject to additional factors. See Jacoby v. Jacoby, 427 N.J. Super. 109, 113
(App. Div. 2012). Moreover, a parent's payment for college contribution and
ability to contribute to same is subject to a different legal analysis. Id. at 121.
A-0180-23 36 Plaintiff argues the trial court erred in failing to "sufficiently analyze the
law" applicable to awarding child support in the parties' income bracket and
otherwise erred in setting a support amount. We disagree as the record reflects
the trial court made painstaking findings with respect to the child support award.
At trial, plaintiff proposed a support award of $1,400 per month while
defendant sought $2,500 per month. In composing its order, the court completed
a Child Support Guidelines (CSG) worksheet, but noted the guidelines were "not
applicable" in light of the parties' high income and the worksheet was for
"comparative purposes only." For the purpose of determining each party's
"share" of combined income, the court attributed an income of $1,600 per week
($83,200 per year) to defendant and $9,615 per week ($499,980 per year) to
plaintiff, or 41% and 69%, respectively, after relevant adjustment. However,
for the Appendix IX-F "Basic Child Support Amount," the court could go no
higher than $838 per week, the maximum amount for three children, subject to
a 14.6% increase based on the children's ages. This yielded a support obligation
of $240 per week (approximately $1,029 per month) for plaintiff, with the caveat
that, because it was based on the CSG, it was only intended to cover the first
$187,200 of the parties' combined income.
A-0180-23 37 In light of the parties' high income, the court moved on from the CSG and
reviewed the nine specific factors outlined at N.J.S.A. 2A:34-23(a), remarking,
among other things, that either party could meet the basic needs of the children
following the divorce. The court noted plaintiff had an income of at least
$380,000 the prior year, compared to defendant's $63,181, but only defendant
had "save[d] the children's college expenses during the pendency of this
litigation." Ultimately, the court ordered plaintiff to pay $2,200 per month in
child support.
On appeal, plaintiff observes the court's CSG worksheet reflected an
award of $1,040 per month whereas the court actually imposed an award of
$2,200. He contends the court "did not make specific enough findings to warrant
doubling the [CSG] award" and conducted a "superficial analysis as to the
children's needs." Plaintiff notes the children have "no special needs," the eldest
child is in college, plaintiff already purchased a car for the eldest child, and the
court "still ordered [p]laintiff to pay 60% of expenses that are not typically
included in a [CSG] award." He asserts "nothing in the trial court's analysis
justifies such an extreme child support need" for his children, "above and beyond
the Guidelines award."
A-0180-23 38 Plaintiff places great rhetorical focus on the difference between the award
allowed by the CSG and the actual award. This emphasis is misplaced because
the Guidelines do not apply in this case. By their very terms, the CSGs do not
apply to families with combined incomes greater than $187,200, and thus no
"good cause" is necessary to deviate from them in such cases. R. 5:6A; Child
Support Guidelines, Pressler & Verniero, Current N.J. Court Rules, Appendix
IX-A to R. 5:6A, ¶ 20. Indeed, even in 2022, plaintiff's lowest stipulated income
year, plaintiff earned more than double the CSG maximum. Therefore, the
implication that a support award that likewise doubled the CSG recommendation
was somehow extreme or required special justification is unavailing. The court
was not, as plaintiff suggests, required to find the children had any "special
needs" in order to set a higher award amount. Indeed, we have cautioned a
child's "need" may encompass luxuries in line with their parents' standards of
living. Isaacson, 348 N.J. Super. at 566-69, 582-83. Thus, a court is required
to analyze the statutory factors set forth at N.J.S.A. 2A:34-23(a) but calibrate its
analysis to guarantee support commensurate with the parents' financial
resources, not necessarily a child's basic needs or even the amount spent on the
child during the marriage. Isaacson, 348 N.J. Super. at 581. So long as it
A-0180-23 39 follows the applicable law, the trial court's decision is entitled to our deference.
Foust, 340 N.J. Super. at 315-16.
In this case, the court reviewed each of the statutory factors. Most
relevant, the court excluded college-related costs, noted the younger children
engaged in "age-appropriate activities," and found no particularly extreme
expenses. It also found all three children would likely attend college but already
had savings accounts for that purpose.
Although the specific putative errors identified by plaintiff do not
undermine the court's conclusion, and, to the contrary, reflect a correct
application of law, we conclude the child support award suffers from the same
infirmity as the alimony award: failure to state and explain the incomes
attributed to both parties, rendering this court unable to review the child support
award. Therefore, we remand to the trial court for more specific findings in
support of its child support award.
3. Buy Out Conditioned on Plaintiff's Compliance with Alimony
Obligation.
As previously noted, a Family Part judge is afforded "broad discretion
. . . in allocating assets subject to equitable distribution." Slutsky, 451 N.J.
Super. at 355 (omission in original) (quoting Clark v. Clark, 429 N.J. Super. 61,
A-0180-23 40 71-72 (App. Div. 2012)). Specifically, the "manner of distribution" falls within
the court's discretion. Steneken v. Steneken, 367 N.J. Super. 427, 435 (App.
Div. 2004), aff'd in part, modified in part on other grounds, 183 N.J. 290 (2005).
At its essence, the Family Part "is a court of equity, meaning a court of fairness."
Kakstys v. Stevens, 442 N.J. Super. 501, 506 (App. Div. 2015). As such, it is
vested with "inherent equitable authority to fashion appropriate remedies." Div.
of Youth & Fam. Servs. v. M.W., 398 N.J. Super. 266, 295 (App. Div. 2008).
Plaintiff contends the court erred, post judgment, when it conditioned
defendant's obligation to buy out plaintiff's share of the marital home on
plaintiff's prior completion of six months of support payments. Plaintiff argues
the trial court failed to specify its grounds for granting relief and claims "[n]o
statute or case permits" conditioning distribution of marital equity on payment
of support. He also reiterates his arguments that the court failed to consider his
"reduction in income" or defendant's "massive equitable distribution award."
We are not persuaded.
In this case, the delayed buy-out is wholly consistent with the court's
equitable goals and powers. In the initial JOD, the court ordered defendant to
buy out plaintiff's interest in the home—equal to approximately $293,000—
within sixty days. On July 5, 2023, defendant filed a motion for reconsideration,
A-0180-23 41 certifying "mortgage lenders have advised me that I must provide them with six
full months of timely and complete alimony and child support payments from
[p]laintiff" before she could secure the refinancing necessary to complete the
buy-out. In support, defendant referred to plaintiff's own trial testimony, in
which he, as a mortgage broker, testified one would need at least "four months
after a divorce decree" to issue a mortgage, which would require records of
consistent, completed support payments, not including pendente lite support
records. In the same line of testimony, plaintiff had agreed to give defendant "a
reasonable period of time" to buy out the interest.
Despite this acknowledgment, plaintiff, who had not complied with
support obligations prior to trial and had not complied with those obligations
following trial, accumulated approximately $55,000 in support arrears. By
conditioning the buy-out of the marital home on plaintiff's compliance with
support orders, the court avoided countenancing plaintiff's long-standing
defiance of such orders. See N.J.S.A. 2A:34-23 (explaining the court's broad
power to fashion remedies for non-payment of support). The court's order was
consonant with its equitable powers and we see no reason to disturb it on appeal.
A-0180-23 42 4. Award of Counsel Fees.
Finally, plaintiff contends the award of $44,000 in counsel fees to
defendant must be reversed because the court over-emphasized some
considerations, underemphasized others, and failed to explain how it calculated
the sum awarded. Again, we are unpersuaded.
"We will disturb a trial court's determination on counsel fees only on the
'rarest occasion,' and then only because of clear abuse of discretion." Barr v.
Barr, 418 N.J. Super. 18, 46 (App. Div. 2011) (quoting Strahan, 402 N.J. Super.
at 317).
The recovery of attorney's fees is specifically authorized in family actions.
R. 4:42-9(a)(1); R. 5:3-5(c). Pursuant to these rules, applicants must submit an
affidavit of services addressing the factors listed in RPC 1.5(a) and itemize
disbursements for which reimbursement is sought. Prior to making such an
award, the court "shall consider the factors set forth in the court rule on counsel
fees, the financial circumstances of the parties, and the good or bad faith of
either party." N.J.S.A. 2A:34-23. Thus, the court must analyze the following
factors:
(1) the financial circumstances of the parties;
(2) the ability of the parties to pay their own fees or to contribute to the fees of the other party;
A-0180-23 43 (3) the reasonableness and good faith of the positions advanced by the parties both during and prior to trial;
(4) the extent of the fees incurred by both parties;
(5) any fees previously awarded;
(6) the amount of fees previously paid to counsel by each party;
(7) the results obtained;
(8) the degree to which fees were incurred to enforce existing orders or to compel discovery; and
(9) any other factor bearing on the fairness of an award.
[R. 5:3-5(c).]
In this case, both parties sought attorney's fees. By the trial's conclusion,
defendant had "incurred fees and costs in the amount of $228,471.25 of which
she [had] paid $162,986.66" and plaintiff had incurred approximately $143,507.
In making its fee award, the court reviewed all factors delineated by Rule
5:3-5(c) as well as RPC 1.5(a). Most saliently, the court found both parties had
"the ability to pay their own counsel fees," particularly given the "assets
received following equitable distribution," but "given the magnitude" of the fees
accrued, neither could pay the others' without "significant depletion of their own
assets." The court also found, based on both parties' anticipated income,
A-0180-23 44 including alimony, plaintiff was better equipped to contribute to defendant's
fees, but defendant had "exempt assets" on which to draw.
In discussing the parties' good or bad faith, the court declined to find that
"either party advanced positions with respect for alimony or child support in bad
faith." However, the court noted plaintiff had refused to pay support for a
number of months and accrued support arrears of approximately $19,073. The
court also recalled an incident earlier in the litigation when plaintiff told the
court his base salary would be cut by twenty percent and, upon learning that
would not occur, had failed to inform the court. Separately, the court observed
defendant "had to subpoena certain information, which could have been obtained
had [plaintiff] cooperated," including information related to the aforementioned
salary cut, "distribution from an undisclosed marital retirement account," and an
insurance policy plaintiff had improperly allowed to lapse.
The court held, with regard to the "significant trial issues" of alimony,
child support and contribution, and the "exempt status of certain assets,"
defendant "materially prevailed." Having reviewed the parties' expenses
through the lens of the applicable Court Rules, the court awarded defendant
$44,000 in fees, approximately one quarter of her outstanding balance or one
A-0180-23 45 fifth of her total fees. The court's careful analysis is supported by the record and
we conclude it did not abuse its discretion.
5. Defendant's Request to Create a Trust.
In her cross-appeal, defendant argues the court erred by declining to order
the creation of a trust, funded by plaintiff's receipt from the buy-out of the
marital home, to ensure the future support of the parties' children. Because there
is no authority to suggest the creation of such a trust would be mandatory, we
find no error on this point.
N.J.S.A. 2A:34-23 provides, following a divorce, a court "may" issue such
orders for the "care, custody, education and maintenance of the children . . . as
the circumstances of the parties and the nature of the case shall render fit,
reasonable and just." The court may "require reasonable security for the due
observance of such orders, including, but not limited to, the creation of trusts or
other security devices, to assure payment of reasonably foreseeable medical and
educational expenses." Ibid.
Trial courts have implemented trusts to secure parties' support obligations
in a variety of circumstances. In Lynn v. Lynn, for example, a doctor's income
decreased dramatically but temporarily when he returned to school, leading the
trial court to order the creation of a trust to ensure the payment of child support
A-0180-23 46 during that period. 165 N.J. Super. 328, 339 (App. Div. 1979). We approved
the trial court's approach. Id. at 341-42; see also Finkel v. Finkel, 290 N.J.
Super. 204, 206 (App. Div. 1996) (discussing the prior establishment of a
support trust, funded by the sale of one party's interest in the marital home, when
that party was in arrears). However, whether or not to establish a trust is within
the discretion of the trial court. Savoie v. Savoie, 245 N.J. Super. 1, 6-7 (App.
Div. 1990) (approving of the trial court's order that one party's proceeds from
the sale of the marital home "be used as security for performance of the overall
alimony and support package").
Plaintiff failed to observe his support obligations on more than one
occasion, both by failing to make support payments and by failing to maintain
court-ordered insurance. In response, defendant sought—both at trial and in her
motion for reconsideration—to create a trust to guarantee the payment of
plaintiff's obligations. In its initial order, the court denied her request,
concluding "there are not liquid funds available for the creation of a trust and
the parties will be ordered to maintain life insurance to ensure their respective
obligations." It also noted there was no evidence of specific future medical
needs of the parties' or their children and college funds had been created to
support the children's education. In the context of plaintiff's request for a trust
A-0180-23 47 to secure life insurance particularly, the court also denied the request but ordered
plaintiff to "provide proof of payment and access to the insurance policy . . . on
an ongoing basis." In its order on the parties' motions for reconsideration, the
court again denied the request, although without prejudice.
On appeal, defendant highlights plaintiff's support arrears and failure to
secure court-ordered insurance for the benefit of defendant and the parties'
children. She also underscores plaintiff's reckless spending, failure to save, and
reluctance to disclose necessary information to defendant and the court.
Defendant fails to establish the court erred in denying her request for the
creation of a trust. The relevant portion of N.J.S.A. 2A:34-23 is permissive,
providing the court "may" require the creation of a trust. See State v. S.N., 231
N.J. 497, 512 (2018) (explaining that "may" is generally "permissive,"
especially when contrasted with obviously mandatory language). Indeed, the
very same paragraph of the statute provides that, in the alternative, "the
performance of the said orders may be enforced by other ways according to the
practice of the court." N.J.S.A. 2A:34-23; see also M.W., 398 N.J. Super. at 295
(explaining the Family Part's "inherent equitable authority to fashion appropriate
remedies"). In this case, the court made use of numerous other means to enforce
A-0180-23 48 its orders, including issuing subsequent orders, awarding attorney's fees,
establishing payroll deductions, and requiring life insurance.
Because there is no authority to compel the specific remedy defendant
seeks and because we conclude the court did not misapply its discretion, the
court did not err in declining to establish a trust. In sum, we affirm the trial
court's orders with the exception of the portion of the order establishing the
alimony and child support obligations. We vacate those orders and remand to
the court for more specific findings as to the income imputed to each party, and
calculation of the marital lifestyle, utilizing the evidence adduced at trial.
Affirmed in part, vacated in part, and remanded for further proceedings in
accordance with this opinion. We do not retain jurisdiction.
A-0180-23 49
Related
Cite This Page — Counsel Stack
Michael J. Burke v. Tara H. Burke, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-j-burke-v-tara-h-burke-njsuperctappdiv-2026.