Samuels v. Venegas

126 A.D.2d 145, 513 N.Y.S.2d 136, 1987 N.Y. App. Div. LEXIS 41137
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 19, 1987
StatusPublished
Cited by5 cases

This text of 126 A.D.2d 145 (Samuels v. Venegas) 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
Samuels v. Venegas, 126 A.D.2d 145, 513 N.Y.S.2d 136, 1987 N.Y. App. Div. LEXIS 41137 (N.Y. Ct. App. 1987).

Opinion

OPINION OF THE COURT

Asch, J.

Plaintiff Mrs. Samuels and defendant Mr. Venegas were divorced pursuant to a judgment entered on October 22, 1974, and their separation agreement, dated March 19, 1974, was incorporated but not merged in that divorce decree. Pursuant to the separation agreement, the plaintiff was given custody of the two children, David born in 1968 and Jonathan born in 1972. Defendant, who worked for IBM, agreed to pay child support to the plaintiff based upon his adjusted gross income. Pursuant to this agreement, child support would be 22ti% of the first $18,000 of defendant’s income, 12Vz% of the next $12,000 and 10% of all income in excess of $30,000. The defendant also would maintain health coverage for the children and pay all of their medical and dental expenses.

Defendant has been employed by IBM for about 20 years. [147]*147He was earning approximately $14,000 when the parties married and $24,000 when the separation agreement was signed. At the time this action was commenced, he was earning approximately $52,000 per year and at the end of 1983 his gross annual earnings were some $57,000.

Plaintiff, a college graduate, was a full-time teacher in Yonkers for a short time between 1964 and 1967 and returned to teaching part time after the parties’ divorce, earning between $6,000 and $7,000 per year between 1976 and 1979. She has not worked outside of the home since then.

In 1980, plaintiff and her second husband bought a 10-room home for $180,000 in Great Neck, Long Island, where David and Jonathan attend the local public schools. Plaintiff contributed her sole asset, a $16,000 legacy from her mother, towards the purchase price. She and her second husband employ a "live-in” housekeeper. One of the five bedrooms in the home is occupied by the husband’s two teen-age sons, from his first marriage, on their frequent visits. A daughter was born to the plaintiff in November 1980. Plaintiff conceded that her second husband is earning over $100,000 per year.

Defendant married a fellow employee of his at IBM, who, as a marketing specialist, earned $87,000 in 1982 in addition to nearly $4,000 in dividend and interest income. The couple drives two cars, both owned by the wife.

At the beginning of their marriage, defendant and his second wife lived in her cooperative apartment. In October 1982, the wife purchased, in her own name, a four-bedroom house in Stamford, Connecticut, where the couple resides. She made a $39,000 down payment from the $76,550 net proceeds of the sale of her co-op apartment and has since paid the entire monthly mortgage payments of $1,610 herself. Defendant asserted that he pays one half of the annual cost of maintaining the Stamford home, which is approximately $4,440.

Soon after their marriage, defendant and his second wife jointly purchased a large old house in Massachusetts for $64,000, each contributing one half of the $13,000 down payment. Defendant paid his share from the proceeds of a $15,000 loan he made from the IBM Credit Union, using the balance to pay off old debts. He also testified that in 1982 he paid one half of the basic fixed expenses on the house (approximately $6,000) and one half of the cost of maintenance and repairs (approximately $8,400) from his deposits in a joint checking [148]*148account. The Massachusetts premises are used on weekends throughout the year and defendant spends a great amount of time there with David and Jonathan.

Defendant took a second $15,000 loan from the IBM Credit Union in October 1982 and applied $12,000 of this amount towards the purchase, in his wife’s name, of two acres of unimproved land adjacent to the Massachusetts property "in order to protect their investment there”. (As of April 1983, he still owed $11,000 on the 1979 loan.) He has been repaying the consolidated loan at the rate of $300 per paycheck, or $7,200 annually, since late 1982. Withdrawals have also been made from his salary at the rate of 10% per paycheck over the past several years by the IBM Stock Purchase Plan. He now holds over 200 shares of IBM stock, which are pledged as collateral against his indebtedness. In 1982, he received dividends of $378 on those shares. Plaintiff and defendant jointly own 144 shares of IBM in trust for their children.

The defendant testified before the Referee regarding his personal expenses, the major ones being for food $3,000 (including $1,200 for "eating out”), clothing $1,200, gasoline $1,040, vacations (with his wife) $996, life insurance $408, and $5,578 spent for the boys, over and above his support obligations, including $1,600 for food ($1,020 of that for "eating out”), $921 for skiing and ski equipment, $600 for entertainment, $280 for hockey equipment, $416 and $760 spent on sending them to a baseball camp for one week in August 1982. Thus, in 1983, when defendant’s income was $57,000, his total expenditures on behalf of the children were in excess of $13,000 plus medical and dental expenses.

Plaintiff sought an upward modification in child support pursuant to paragraph 9 of the separation agreement, which provides that, "[i]n the event of changed circumstances, either the husband or the wife may move to modify this Agreement.” She claimed that the escalation clause under which defendant has been paying support over the past 10 years ($625 per month since January 1983) has proven to be inadequate because plaintiff has been unable to work and because of the increased needs of the growing children. She also contended that the needs of the children now total $1,917.20 per month (or $23,006.40 per year).

Plaintiff asserted before the Referee that defendant has, since his remarriage and especially during the pendency of this application, followed a pattern of financial subterfuge to [149]*149conceal his assets, i.e., by "deliberately encumbering” them with debt to reduce his spendable income and by intermingling his net income with that of his second wife. Plaintiff acknowledged that, in addition to seeking an increase of almost $1,300 per month in child support, she wanted defendant to pay the children’s entire summer camp expenses, approximately $4,000, and the college education expenses of the older child, who, at the time of the hearing, still had three years left before his graduation from high school.

In his initial report, the Referee found, inter alia, that defendant had not, as plaintiff contended, attempted to conceal his income and assets; that the reasonable annual needs of each child were $8,500, which included food, clothing, housing, utilities and recreation; that the issue of summer camp had been rendered academic by virtue of defendant’s proven inability to pay for the full amount of the children’s basic needs; and that the issue of college expenses was premature.

Special Term referred the matter back to the Special Referee finding, inter alia,

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Bluebook (online)
126 A.D.2d 145, 513 N.Y.S.2d 136, 1987 N.Y. App. Div. LEXIS 41137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/samuels-v-venegas-nyappdiv-1987.