Oberstein v. Oberstein

93 A.D.2d 374, 462 N.Y.S.2d 447, 1983 N.Y. App. Div. LEXIS 17488
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 3, 1983
StatusPublished
Cited by24 cases

This text of 93 A.D.2d 374 (Oberstein v. Oberstein) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oberstein v. Oberstein, 93 A.D.2d 374, 462 N.Y.S.2d 447, 1983 N.Y. App. Div. LEXIS 17488 (N.Y. Ct. App. 1983).

Opinions

opinion of the court

Kassal, J.

The question which confronts us on this appeal is the continued viability of the legal principle expressed in Shiffman v Shiffman (57 AD2d 519) in Gleeson v Gleeson (69 AD2d 964, mot for lv to app dsmd 47 NY2d 709) and in other cases, holding that where the support obligations of the parties are fixed by a subsisting separation agreement, disclosure as to finances may not be obtained in a subsequent conversion action for divorce, since support is not in [375]*375issue unless and until the separation agreement is declared invalid and set aside. The basic issue is whether that long-standing principle applies in matrimonial actions commenced after July 19, 1980, the effective date of the Equitable Distribution Law (Domestic Relations Law, § 236, part B).

The parties were married on December 17,1967. After a 12x/2 year marriage which produced one issue, a daughter, born November 6, 1974, the marriage disintegrated and the parties entered into a separation agreement on October 21, 1980. The agreement, prepared by one attorney representing both parties, provided, inter alia, that the marital residence be sold with the proceeds, household furnishings and personal effects being equally divided in accordance with the schedule annexed to the agreement; the wife was awarded custody of the child, with child support of $300 per month; the husband was to maintain $100,000 life insurance with the daughter named as the beneficiary and maintain medical and hospital insurance for the child’s benefit.. There was no provision made for maintenance payments for the wife. Moreover, both parties, at all relevant times, were employed, the wife as a speech pathologist with the Harrison School Board, earning in excess of $30,000 per year and the husband as a sales manager with Merrill Lynch.

Subsequently, on April 2,1982, the husband commenced this action for divorce, based upon the parties having lived separate and apart, pursuant to a separation agreement, for a period in excess of one year (Domestic Relations Law, § 170, subd [6]). The wife answered, interposing two affirmative defenses and counterclaims, seeking rescission or, in the alternative, reformation of the separation agreement and an award “to meet the reasonable needs of the defendant, and child support to meet the reasonable cost of the care, education and maintenance” of the child. Together with the answer, the wife served a notice of deposition, “as to all factors relating to his financial state” and directing plaintiff to produce thereat an extensive list of items, including his Federal and State income tax returns for the period 1976 (four years prior to the separation agreement) to 1981; statements of brokerage and invest[376]*376ment accounts; documents pertaining to pension, profit sharing, deferred compensation and stock option plans; statements as to cash value of life insurance policies; documents evidencing partnership or proprietary interest in real or personal property; and “any other documentary evidence of other assets of the plaintiff.”

Thereupon, the husband moved for a protective order to vacate the notice of examination upon the ground that since there existed a valid separation agreement between the parties and, since support was not in issue, an examination into plaintiff’s finances was improper. In opposition, the wife alleged, generally, that plaintiff had unfairly taken advantage of defendant in the preparation of the separation agreement in that defendant’s “mental and emotional state at the time was such that I did not clearly perceive, or fully understand, what was going on” and that she “was not properly and independently represented and advised” when she signed the agreement. Special Term denied the motion, directing plaintiff to appear for examination and, further, finding that defendant was “entitled to full and complete disclosure of his finances” since defendant had interposed counterclaims alleging generally that the agreement was unfair and that “plaintiff fraudulently misrepresented his actual income and assets” to induce her to sign the agreement.

It has been established law in this State that where there is an existing separation agreement, which controls the respective support obligations of the parties, in a subsequent matrimonial action for divorce neither alimony nor support is in issue unless and until the support terms of the separation agreement are set aside. On this basis, the courts have regularly denied any financial disclosure in such an action, as long as the support terms of the separation agreement remain in effect. (Shiftman v Shiffman, supra; Gleeson v Gleeson, supra; Moat v Moat, 27 AD2d 895; Picotte v Picotte, 82 AD2d 983, mot for lv to app dsmd 55 NY2d 847.) The Appellate Division, Second Department, has most recently adhered to this principle in Potvin v Potvin (92 AD2d 562) observing in a memorandum: “However, so much of defendant’s notice to take plaintiff’s oral deposition as requests information regarding his pre[377]*377sent financial condition is premature. Plaintiff’s present financial circumstances are not relevant to the defendant’s claim, inter alia, that she was deceived regarding the true extent of her husband’s income at the time that the separation agreement was entered into and will not become an issue unless and until the separation agreement or its support provisions have been vacated or set aside on the grounds of fraud, duress or overreaching, etc.”.

In Potvin v Potvin (supra) the Second Department relied in part upon our determination in Milts v Milts (87 AD2d 779) where we unanimously reversed the denial of a motion for a protective order and vacated interrogatories which had been served without prejudice to the service of new interrogatories relating to the validity of the separation agreement, concluding that disclosure as to finances must await resolution of the preliminary issue as to the agreement’s validity.

The issue presented here is the continued efficacy of that principle in light of the enactment of the Equitable Distribution Law, applicable to matrimonial actions commenced after July 19,1980. The foregoing cases were decided upon the legal premise that a separation agreement, as with all other written contracts, could only be modified or vacated upon a significant showing of mutual mistake, fraud, duress or undue influence. The new operative standard contained in part B of section 236 of the Domestic Relations Law, however, may require some modification of the rule concerning disclosure as to finances where the support obligations of the parties had been fixed by a prior separation agreement. Although the Equitable Distribution Law permits an application to modify maintenance or child support upon a showing of “substantial change in circumstance” (Domestic Relations Law, § 236, part B, subd 9, par b), which is consistent with the prior law, in all other respects, such agreements are now accorded a substantially different status in terms of maintenance and support. Instructive is section 236 (part B, subd 3) of the Domestic Relations Law, which provides in part: “An agreement by the parties, made before or during the marriage * * * may include * * * (3) provision for the amount and duration of maintenance or other terms and conditions [378]*378of the marriage relationship, subject to the provisions of section 5-311 of the general obligations law, and

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Bluebook (online)
93 A.D.2d 374, 462 N.Y.S.2d 447, 1983 N.Y. App. Div. LEXIS 17488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oberstein-v-oberstein-nyappdiv-1983.