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Schupak v. Schupak

July 10, 2008


On appeal from the Superior Court of New Jersey, Chancery Division, Family Part, Essex County, Docket No. FM-18679-76.

Per curiam.


Submitted May 21, 2008

Before Judges Cuff and Simonelli.

Defendant Leonard Schupak appeals from the denial of his post-judgment motion to terminate his alimony obligation. Defendant contends that he made a prima facie showing of changed circumstances to warrant termination of alimony; that the judge erred by not establishing a marital lifestyle; and that the judge based a previous decision to reduce the monthly alimony from $1400 to $900, instead of $400, on a mistaken belief that defendant had an additional $2 million in income. We reject these contentions and affirm.

The parties married on August 2, 1962. Two children were born of the marriage, in 1970 and 1971. A Judgment of Divorce was entered on January 4, 1979, requiring defendant to pay unallocated support of $1400 per month for plaintiff and the two children.

Defendant was a successful securities trader, at times earning $500,000 a year. In 2002, defendant left his job at Merrill Lynch, receiving a total severance package of over $1.3 million. In October 2002, defendant relocated to Costa Rica, and reduced his monthly support payment to $400 without the court's permission.

Defendant eventually filed a cross-motion to reduce his monthly support to $400 due to changed circumstances based upon a decrease in his income and assets.*fn1 Defendant's 2003 Case Information Statement (CIS) revealed $633,168 in assets,*fn2 a gross income of $142,332 for 2002, $1525 per month for Social Security, and $4308 for monthly shelter, transportation and personal expenses. Judge Troiano entered an order on November 15, 2004, requiring defendant to pay plaintiff permanent alimony of $900 per month, effective November 17, 2003.

Defendant filed a motion for reconsideration, arguing that in reaching the $900 amount, the judge erred in considering approximately $2 million in short-term gain reflected on defendant's tax return. Although, Judge Troiano found that defendant had access to this money, he concluded "that nevertheless with the other additional assets that [defendant] has, as well as his ability to continue to earn a living, he clearly is in a position to continue to pay [plaintiff] the court-ordered reduced amount of alimony in the amount of $900." Judge Troiano entered an order on January 19, 2005, denying defendant's motion for reconsideration. Defendant did not appeal.

In 2005, defendant obtained a real estate license in Florida, and was employed as a part-time real estate agent. Defendant also invested in commercial mortgages with The Berman Group, from which he received interest income.

On or about April 18, 2007, defendant filed a motion to terminate alimony due to a change in circumstances based upon a decrease in his income and assets, and upon an increase in plaintiff's assets.*fn3 Defendant claimed that he was not receiving his full interest payments from The Berman Group, and he anticipated that his income would diminish due to that situation.

Defendant's 2007 CIS as of April 2007 revealed assets of $468,000,*fn4 and gross income of $21,265, including $9000 in real estate commissions, and $6554 in interest income. Also, defendant remarried and lives in his new wife's condominium. His 2007 CIS revealed monthly shelter expenses of $208 for real estate taxes, $100 for insurance, $500 for maintenance fees, $50 for the telephone, $100 for a cell phone, and $24 for internet charges; monthly transportation expenses of $492 for his 2005 Lexus, $130 for car insurance,*fn5 $10 for registration and license, $50 for maintenance, and $250 for fuel and oil; and monthly personal expenses of $3789, which includes $300 for food at home and household supplies, $600 for restaurants, $150 for domestic help, $200 for sports and hobbies, $500 for vacations, $200 for entertainment, $100 for contributions, and $800 for tax reserve. Defendant's total monthly expenses are $5703.*fn6

Judge Troiano denied defendant's motion, finding that defendant had not shown changed circumstances as required by Lepis v. Lepis, 83 N.J. 139 (1980). The judge specifically rejected plaintiff's belief that defendant "has [$2 million] hidden away someplace[.]" he focused on whether there was a significant reduction in defendant's income since 2004, when the judge reduced defendant's monthly support payment to $900, and he concluded as follows:

The argument can be made clearly here that at best what we have here is we have a temporary situation, and perhaps even a premature motion. And I hate to open those kind of doors, but we have a premature --could have a premature motion filed by [defendant] asking for the Court to terminate alimony, when in reality the situation with regard to [the mortgage investment], the situation with regard to the [real estate] commissions is something that is much too early for this Court to be able to determine whether ...

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