Background:
• Divorce Agreement: During their divorce, the husband agreed to pay his wife $200,000 over time as part of equitable distribution. By his death, he had paid only $110,000. The agreement stated that his estate should pay any remaining amount if he died before his ex-wife .
• Unlisted Assets: The divorce agreement listed assets each party would keep, but it didn’t include over $70,000 in US Series EE Savings bonds owned by the husband .
Events After Husband’s Death:
• Power of Attorney: Before dying, the husband named his ex-wife as his power of attorney. After his death, she used this authority to pay for his medical and funeral expenses, and expenses related to his house. She also cashed in the savings bonds that were payable to her upon his death .
• Legal Challenge: The husband’s daughter from another relationship sued. She aimed to administer his estate and recover funds from the ex-wife, including the bonds. She argued that the bonds and other payments satisfied the husband’s financial obligation to his ex-wife. The trial court initially agreed with her .
Court Decision:
• Federal Law Over State Law: The Appellate Division reversed the trial court’s decision. It emphasized that a savings bond is a contract between the United States and the bond owner, and federal law prevails over state law in these matters. The US Supreme Court has ruled that the survivorship provisions in federal regulations control such cases, even if it means overriding state law .
• Final Ruling: Since the divorce agreement didn’t list the bonds as the husband’s property, the Appellate Division ruled that the ex-wife was entitled to the bonds. They were not to be used as an offset against the equitable distribution owed to her .
This case is a compelling example of how family law, estate law, and federal law can intersect in complex ways, particularly regarding financial assets and obligations.
Divorce is ugly and we all know it. The good news is that having a good attorney on your side can provide you with warmth, comfort and security in this difficult situation. We hope you did not have kids before the divorce, but if you did, we will try to help everything related to custody go smooth as well. Whether you are facing a contested or uncontested divorce you can reach out to our Queens Divorce Attorney today to schedule & fast & free legal consultation.
Aronov Esq Contested Divorce Lawyer 98-14 Queens Boulevard Rego Park, NY 11374 (718) 206-2050 https://
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