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New York Domestic Relations Law Fall 2020
Resource 3 . 4 . 4
2 minutes

Automatic Orders (Handout for Clients)

Joy Rosenthal

 

 

 

 

 

 

Automatic Orders

 

The mediation/collaborative process rests on a foundation of trust, particularly in regard to the financial wellbeing of the family.  In a litigated divorce, both parties would have to abide by the “Automatic Orders” which take effect as soon as the divorce action is filed.  The text of those orders is below.  In order to maintain the integrity of our work together, we ask that you abide by the following, even though in most mediation or collaborative cases, the divorce action will not be filed until the settlement agreement has been reached: 

 

  1. Neither party 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 fee in connection with this action; and
  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; except that any party who is already in pay status may continue to receive such payments thereunder; and
  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 housing expenses, or for reasonable attorney's fees in connection with this action; and
  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; and
  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.

 

New York Domestic Relations Law § 236 B(2) 

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