New York's Automatic Orders: What You Need to Know

New York’s Automatic Orders: What You Need to Know

New York’s Automatic Orders, pursuant to Court Rule 22 NYCRR Sec. 202.16(a) and DRL Sec 236 (B)(2), are served along with the divorce pleadings in the divorce. They ensure that both parties are on notice that neither party is permitted to dissipate or encumber marital assets during the pendency of a divorce, or terminate the family from insurance policies. The Court wants to preserve the parties’ assets and insurance policies. A failure to comply with Automatic Orders may be deemed a Contempt of Court by the matrimonial Judge.

New York Divorces are commenced by filing a Summons with Notice or Summons with Complaint. The divorce filing marks the end of the acquisition of the marital estate and “Stops the Clock” for the parties. For the Plaintiff starting the divorce, Automatic Orders will be in place as of the date of filing. For the Defendant, the party who is served with divorce pleadings, Automatic Orders will be in place as of the date of service.

The Automatic Orders remain in full force during the pendency of the divorce unless terminated or modified by the Court or upon written agreement of the parties. It applies to any marital property, including real estate, personal property, cash accounts, stocks, mutual funds, bank accounts, cars and boats, and assets individually or jointly held by the parties.

Neither party shall transfer, encumber, assign, remove, withdraw or in any way dispose of the parties’ property, except in the ordinary course of business, for usual household expenses, or for reasonable attorney’s fees for the divorce. The same restrictions apply to either party’s retirement accounts.

Neither party is permitted to incur unreasonable debts after the divorce filing; this applies to further borrowing against credit lines secured by the marital residence, encumbrancing assets, unreasonably using credit cards and cash advances, except in the usual course of business or for reasonable attorney’s fees for the divorce.

Neither party shall cause the other party or children of the marriage to be removed from their existing insurance coverage and neither party shall change the beneficiaries of any existing life, automobile, homeowners and renters insurance policies in effect.

After service of the divorce pleadings and the Automatic Orders, if you or your spouse wish to dissolve the Orders, you must ask the Court for approval to do so or enter into a properly executed agreement with your spouse.

If the parties are engaged in mediation or collaborative divorce negotiations, they may choose to enter into a “Stop the Clock” agreement and agree that the Automatic Orders are in place so that they can negotiate a global resolution to the case and file an Uncontested Divorce thereafter.

For more information on Automatic Orders and divorce, speak to your lawyer given the circumstances in your case.