M.S. VS. M.A.S. (FM-18-0670-15, SOMERSET COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided May 7, 2019·No. A-3937-17T3·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3937-17T3

M.S., Plaintiff-Appellant,

v. M.A.S.,

Defendant-Respondent.

Argued March 26, 2019 – Decided May 7, 2019 Before Judges Yannotti and Natali.

On appeal from Superior Court of New Jersey, Chancery Division, Family Part, Somerset County, Docket No. FM-18-0670-15.

Robert M. Zaleski argued the cause for appellant (Law Offices of Paone, Zaleski & Murray, attorneys; Andrew J. Economos, of counsel and on the briefs).

Bonnie C. Frost argued the cause for respondent (Einhorn, Harris, Ascher, Barbarito & Frost, PC, attorneys; Matheu D. Nunn and William J. Berman, on the brief).

PER CURIAM

Plaintiff M.S.1 appeals from portions of a March 23, 2018 Family Part order denying his motion for reconsideration of the court's January 19, 2018 order. After conducting a thorough review of the record in light of the applicable legal principles, we affirm in part, reverse in part, and remand for further proceedings.

I.

M.S. and M.A.S. were married on August 18, 2000. They have two daughters, a seventeen-year-old and a fourteen-year-old, both of whom reside with defendant on a full-time basis. On September 1, 2011, the parties separated and plaintiff moved to Boston.

Plaintiff filed a complaint for divorce on June 26, 2013. In his 2013 case information statement (CIS), plaintiff represented that the expenses necessary to support the marital lifestyle totaled $32,091 per month. Defendant's 2013 CIS, however, claimed that the marital lifestyle expenses totaled only $17,526 per month. Both CISs stated the parties' joint gross income was approximately $583,000 and their joint net income was $386,480 in 2012, the year following their separation.

1 We use initials to protect the confidentiality of the participants in these proceedings A-3937-17T3

On January 6, 2014, the parties executed a Consent Final Judgment of Custody and Parenting Time and plaintiff dismissed the divorce complaint. Plaintiff reinstated the divorce proceedings the following year, and on December 8, 2015, the court entered a Final Judgment of Divorce (JOD), which dissolved the parties' fifteen year marriage and incorporated their August 2015 Divorce Settlement Agreement (DSA).

At the time the DSA was executed, plaintiff was employed as the Chief Medical Officer of a pharmaceutical company with a base annual salary of $405,000. In addition, he was eligible to earn additional incentives as compensation, including "cash bonuses and stock options." When she signed the DSA, defendant was "employed as a part time self-employed consultant to the pharmaceutical industry." The parties acknowledged in the DSA that for purposes of establishing plaintiff's alimony obligation, defendant's current income was uncertain. The parties agreed, however, that "in no event shall gross earned income of less than $110,000.00 per year be imputed to [defendant]."

Pursuant to paragraph five of the DSA, plaintiff agreed to pay defendant limited duration alimony for a period of ten years. Specifically, plaintiff was required to pay defendant $100,000 per year in "base" limited duration alimony, plus 25% of any "gross cash bonus" he earned as "additional" limited duration

A-3937-17T3

alimony for the first eight years. 2 For the following two years, his base alimony would decrease to $75,000 per year, and he would no longer have to pay the "additional" alimony.

Two provisions of the DSA, paragraphs eight and twelve, are particularly relevant to the issues raised by plaintiff related to his continued alimony obligation. Paragraph eight provides:

The parties have been advised of the [Lepis] decision ([Lepis v. Lepis, 83 N.J. 139 (1980)]), and other appropriate statutes (including [N.J.S.A.] 2A:34-23), rules, and case law governing alimony. The parties understand that the amount of alimony provided hereunder may be modified or terminated accordingly.

The parties further understand that the duration or term of [plaintiff's] limited duration alimony obligation may only be modified upon a showing of unusual circumstances as set forth in [N.J.S.A.] 2A:34-23.

Further, in paragraph twelve, both parties agreed that:

The[y] . . . have been made aware of the case of [Crews v. Crews, 164 N.J. 11 (2000)] and the related case law.

The parties agree that based upon the terms of this Agreement, they each have the ability to maintain the standard of living established during the marriage.

2 Paragraph five further provides that "[t]he parties specifically acknowledge that [plaintiff's] additional alimony obligation applies only to any gross cash bonus paid to [plaintiff] and does not apply to any other form of bonus or incentive compensation including but not limited to stock or stock options which may be earned by [plaintiff] or paid to [plaintiff]."

A-3937-17T3

In addition, the parties agreed that the limited duration alimony award would terminate if either party died, or if defendant remarried or was determined to be cohabitating. The DSA also required plaintiff to maintain life insurance on behalf of defendant and the children. As to defendant, plaintiff agreed to maintain a $1,000,000 policy "as long as [plaintiff] maintains an alimony obligation" under the DSA. Commencing on July 1, 2016, and each succeeding year, the DSA entitled plaintiff to reduce the policy's death benefit by $80,000.

In September 2015, one month after the parties signed the DSA, plaintiff moved to Germany and he lost his job approximately five months later in February 2016. Plaintiff was rehired by a different pharmaceutical company shortly thereafter and currently earns a base salary of $322,000. Defendant claimed that despite his reduced base salary, plaintiff still receives substantially the same annual income as he did in his previous job but structured his current compensation package to lower his base salary.

Defendant attested that she was unemployed from January 2016 through March 2016, but that her income increased "during 2016 as a result of having to work more hours to meet the financial demands of supporting [herself] and [the parties'] two daughters." Defendant's current base salary is $190,000, and, like plaintiff, she has an opportunity to earn an annual bonus.

A-3937-17T3

According to defendant, in September 2016, plaintiff refused to contribute to the children's extra-curricular and other miscellaneous expenses. She certified that plaintiff's "reduced base salary . . . and his potential for a higher stock reward with [defendant] having no entitlement," his "inability to secure [United States] medical insurance for the children," and his "decision to stop contributing to [the] children's extra-curricular costs" required her "to secure full-time employment as of January 2017."

Defendant certified that working fulltime "was not the marital lifestyle to which [they] had become accustomed; nor was this what was agreed upon." Defendant maintained the parties enjoyed a "very comfortable" and "somewhat luxurious" marital lifestyle that enabled them to "take extensive and luxurious vacations regularly consisting of at least [five] weeks throughout the year," including trips to Europe and the Caribbean. Further, defendant certified that during the marriage she "was able to shop and spend freely," that she "bought items for the children and [their] home without much thought on cost," and that the children "were able to attend expensive private schools and to enjoy expensive extra-curricular activities."

In February 2017, plaintiff unilaterally stopped paying alimony because defendant had become a full-time permanent employee one month earlier and

A-3937-17T3

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M.S. VS. M.A.S. (FM-18-0670-15, SOMERSET COUNTY AND STATEWIDE) (M.S. VS. M.A.S. (FM-18-0670-15, SOMERSET COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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