BILL NUMBER: S8270

SPONSOR: WEBB
 
TITLE OF BILL:

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


 
SOURCE OF BILL:

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

 
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.

 
              

SUMMARY OF PROVISION:

Section 1 of the bill amends paragraph 2(b) of part B of Domestic
Relations Law § 236 to (1) provide that automatic orders remain in
effect until entry of the judgment of divorce (rather than during
pendency of the action); and (2) add a new subparagraph (6) to require
any party who receives notice of a tax lien, foreclosure, bankruptcy, or
litigation, or of the lifting of a stay in bankruptcy, which could
adversely affect the marital estate, to provide such notice to the other
party within 10 days after receipt of the notice.

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

 
JUSTIFICATION:

The automatic orders statute, which was enacted in 2009, was a signif-
icant step forward in matrimonial practice, as it prevents one spouse in
a divorce action from dissipating the marital estate in order to deprive
the other spouse of their property. It is both an access to justice
measure which protects litigants during a divorce, and a court efficien-
cy measure because courts no longer have to issue orders in individual
cases to prevent prohibited conduct.

This bill makes two important improvements to the automatic order
provisions of Domestic Relations Law ("DRL") § 236, Part B, subdivision
2(b). First, in its current form, the statute fails to require a spouse
to notify the other spouse of a tax lien, foreclosure, bankruptcy, or
litigation, or the filing of same, or of the lifting of a stay in bank-
ruptcy, which could adversely affect the marital estate. If one spouse
receives notice that a legal proceeding has been commenced but fails to
notify the other spouse 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 who receives such notice to notify the
other party within 10 days.  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 only to that spouse, the spouse who does not
receive the notice will have no opportunity to appear in the legal
proceeding to protect their interest.

Second, 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 incorrectly
conclude that the automatic orders are no longer in effect once a trial
has concluded, but the court's decision has not yet been rendered, a
period which could span several months. This bill therefore would make
clear that " 
THE Each automatic order 
S shall remain in full force and
effect  
DURING THE PENDENCY OF THE ACTION, until the judgment of
divorce is entered or the action is dismissed, discontinued or stayed,
whichever shall occur first, unless the order is 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."

 
PRIOR LEGISLATIVE HISTORY:

This bill was introduced in 2024 and passed the Senate as 5.9746 (Webb).
That version contained a provision dealing with the effectiveness of
Automatic Orders in the event of an emergency declared by the Governor
which, in turn, results in the issuance by the judiciary of an adminis-
trative order prohibiting the filing of a summons or a summons and veri-
fied complaint during the emergency.  This provision has been deleted in
this year's version because it is no longer needed due to the expansion
of e-filing in matrimonial actions and because it may distract from the
other provisions in the proposal. This year's version also added the
lifting of a stay in bankruptcy to the events that could adversely
affect the marital estate, and that a spouse who receives notice there-
of, must notify the other spouse within 10 days.

 
FISCAL IMPLICATIONS:

None.

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