Recently a new rule has gone into effect for matrimonial cases. Starting September 1, 2009 automatic orders will now go into effect whenever someone is served with both a summons and a copy of the automatic orders. These automatic orders are largely concerned with preserving the status quo of the parties' finances. The orders are both relatively simple and at the same time encompass much of what could be done by one party to financially harm the other.
The orders are broken down into five sections; the first restricts a party from disposing of property in any way without the court's or parties' consent. The second restricts any funds, stocks or other assets from being disposed or altered. The third section prevents unreasonable debts from being incurred against the parties' interests or property. The fourth section mandates that all health insurance policies be maintained and unaltered for the parties and their families. The fifth section mandates that all life, home and auto insurance policies will be maintained and unaltered.
These automatic orders should lower the need for early motions to restrict such funds and property in divorce actions. They may also change the calculus for when a lawyer seeks to serve the summons and automatic orders. Below is the full text of the Amendment of the Rule.
AMENDMENT OF RULE
Uniform Civil Rules for the Supreme and County Courts
Pursuant to the authority vested in me, and with the advice and consent of the Administrative Board of the Courts, I hereby promulgate, effective September 1, 2009, new section 202.16-a of the Uniform Civil Rules for the Supreme and County Courts, relating to automatic orders in matrimonial actions, to read as follows:
§ 202.16-a Matrimonial Actions; Automatic Orders
(a) Applicability. This section shall be applicable to all matrimonial actions and proceedings in the Supreme Court authorized by section 236(2) of the Domestic Relations Law.
(b) Service. The plaintiff in a matrimonial action shall cause to be served upon the defendant, simultaneous with the service of the summons, a copy of the automatic orders set forth in this section in a notice that substantially conforms to the notice contained in Appendix F. The automatic orders shall be binding upon the plaintiff immediately upon filing of the summons, or summons and complaint, and upon the defendant immediately upon service of the automatic orders with the summons.
(c) Automatic Orders. The automatic orders served with the summons
shall provide as follows:
(1) Neither part shall sell, transfer, encumber, conceal, assign, remove or in any way dispose of, without the consent of the other party in writing, or by order of the court, any property (including, but not limited to, real estate, personal property, cash accounts, stocks, mutual funds, bank accounts, cars and boats) individually or jointly held by the parties, except in the usual course of business, for customary and usual household expenses or for reasonable attorney's fees in
connection with this action.
(2) Neither party shall transfer, encumber, assign, remove, withdraw or in any way dispose of any tax deferred funds, stocks or other assets held in any individual retirement accounts, 401K accounts, profit sharing plans, Keogh accounts, or any other pension or retirement account, and the parties shall further refrain from applying for or requesting the payment of retirement benefits or annuity payments of any kind, without the consent of the other party in writing, or
upon further order of the court.
(3) Neither party shall incur unreasonable debts hereafter, including but not limited to further borrowing against any credit line secured by the family residence, further encumbrancing any assets, or unreasonably using credit cards or cash advances against credit cards, except in the usual course of business or for customary or usual household expenses, or for reasonable attorney's fees in connection with this action.
(4) Neither party shall cause the other party or the children of the marriage to be removed from any existing medical, hospital and dental insurance coverage, and each party shall maintain the existing medical, hospital and dental insurance coverage in full force and effect.
(5) Neither party shall change the beneficiaries of any existing
life insurance policies, and each party shall maintain the existing life
insurance, automobile insurance, homeowners and renters insurance
policies in full force and effect.
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