Senate Bill S9746

                                 
BILL NUMBER: S9746

SPONSOR: WEBB
 
TITLE OF BILL:

An act to amend the domestic relations law, in relation to automatic
orders in matrimonial actions

2.  
SOURCE OF BILL

This bill is being introduced at the request of the Judiciary, upon the
recommendation of the Chief Administrative Judge's Matrimonial Practice
Advisory and Rules Committee.

3.  
PURPOSE OF BILL

This bill would amend the Domestic Relations Law to make several changes
relating to automatic orders that are served on defendants and that bind
both parties in matrimonial cases.

4.  
SUMMARY OF PROVISION
              

Section 1 of the bill amends paragraph 2(b) of part B of section 236 of
the Domestic Relations Law to:

*provide that, in the event that the Governor declares an emergency
necessitating that the Judiciary issue an order prohibiting the filing
of a summons and complain, automatic orders are then binding on the
parties immediately upon service of the summons upon defendant, but will
not take effect unless the plaintiff purchases an index number:  (1)
within 21 days of such service; or (2) within 120 days of a court order
denying plaintiffs application for poor person status under CPLR §
1101(d) if such application is made within such 21-day period after such
service. and the application was denied.

*provide that automatic orders remain in effect until entry of the judg-
ment of divorce (rather than during pendency of the action); and

*require any party who receives notice of a tax lien, foreclosure, bank-
ruptcy, or litigation that could affect the marital estate. to provide
such notice to the other party within 10 days of receipt of the notice

Section 2 of the bill provides that it shall take effect 60 days after
is shall have become a law.

5.  
JUSTIFICATION

The enactment in 1009 of the automatic orders provisions of § 236.  Part
B, subdivision 2(b) of the Domestic Relations Law (TRL") was a signif-
icant step forward in matrimonial practice because it prevents one
spouse of their property. It also saves judicial resources and legal
fees because courts no longer must issue orders in individual cases to
prevent the types of conduct prohibited.

This bill makes three important changes to the automatic order
provisions of DRL § 236. Part B, subdivision 2(b). First the statute
currently makes automatic orders effective upon the plaintiff upon
filing the summons or summons and complaint, but this created problems
during the COVID-19 pandemic because there was a prohibition against the
filing of such summonses at the outset of the pandemic.  This bill
addresses that problem by providing the automatic orders shall be bind-
ing upon plaintiff and defendant upon service of the summons upon the
defendant during such declared emergencies.

Second, significant problems are caused when a party to a matrimonial
proceeding does not receive notice of residential and tax lien foreclo-
sures and other types of legal proceedings. If one spouse receives
notice but fails to notify the other of a notice of such a legal
proceeding while the divorce action proceeds, it could result in the
other spouse's losing their home or other property. This bill therefore
requires a spouse of a tax lien, foreclosure, bankruptcy, or litigation,
or the filing of same, which could adversely affect the marital estate.
This provision is needed because frequently after spouses separate, they
do not inform each other that important legal proceedings are taking
place which may have a major effect on the marital estate. Sometimes
property is titled in only one spouse's name. If the notice is sent to
the other spouse alone, the spouse who does not receive the notice will
have no opportunity to appear in the legal proceeding to protect their
interest.

Third. DRL § 236. Part B, subdivision 2(b) currently states that auto-
matic orders remain in effect "during the pendency of the action." which
may leave room for a litigant, pro se or otherwise, to fail to provide
notice of a tax lien, foreclosure, bankruptcy. or litigation which could
adversely affect the marital estate, during such period of time between
the conclusion of a trial and the rendering of a court's decision. which
could span several months. It might also leave room for a litigant to
fail to abide by any of the other automatic orders during such period of
time. This bill therefore would make clear that -(t)e automatic orders
shall remain in full force and effect until entry of the judgment of
divorce, unless terminated. modified or amended by further order of the
court upon motion of either of the parties or upon written agreement
between the parties duly executed and acknowledged. or unless the action
is dismissed or discontinued or stayed."

6.  
PRIOR LEGISLATIVE HISTORY

This bill was previously submitted to the Legislature during the 2021-22
session as OCA-25.

7.  
FISCAL IMPLICATIONS

None.

8.  
EFFECTIVE DATE
This bill takes effect 60 days after it shall become a law.