BARRY J. WEINBAUM VS. BARBARA T. WEINBAUM (FM-12-0682-09, MIDDLESEX COUNTY AND STATEWIDE) ( 2019 )

NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the
internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-4716-16T1
BARRY J. WEINBAUM,
Plaintiff-Appellant,
v.
BARBARA T. WEINBAUM,
Defendant-Respondent.
______________________________
Argued January 31, 2019 – Decided July 19, 2019
Before Judges Simonelli, O'Connor and DeAlmeida.
On appeal from the Superior Court of New Jersey,
Chancery Division, Family Part, Middlesex County,
Docket No. FM-12-0682-09.
Rajeh A. Saadeh argued the cause for appellant (The
Law Office of Rajeh A. Saadeh, LLC, attorneys; Rajeh
A. Saadeh, on the briefs).
Sarah Melissa Mahony argued the cause for respondent
(Shimalla, Wechsler, Lepp & D'Onofrio, LLP,
attorneys; Sarah Melissa Mahony, of counsel and on the
brief; William Edward Reutelhuber, on the brief).
PER CURIAM
Plaintiff Barry J. Weinbaum appeals from a provision in the June 27, 2017
Family Part order denying his request to reduce or terminate the alimony he is
obligated to pay defendant Barbara T. Weinbaum, as well as from a provision
denying his request for counsel fees. After reviewing the record and applicable
legal principles, we affirm in part and remand for further proceedings.
I
1
The parties were married in 1984 and divorced in 2009. The parties
entered into a property settlement agreement (PSA), which was incorporated in
an amended dual final judgment of divorce. Among other things, the PSA
provides that plaintiff is to pay defendant $6000 per month in permanent
alimony, which is premised upon him earning $250,000 and defendant $40,000
per year. Paragraph seven of the PSA states that alimony "may be subject to
review" under four circumstances. The circumstance relevant to the issues on
appeal is the "involuntary and non-temporary loss of employment by the
[h]usband."
When the parties were divorced in 2009, plaintiff was in fact earning
$250,000 per year and continued to do so until March 2013, when Lumenergi,
Inc., a venture capital company he worked for in California, was shut down.
1
Two children were born of the marriage. Both are now emancipated.
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Plaintiff was the president and CEO of this company and, when it was shut
down, plaintiff moved from California to Maryland.
Over the next three years, plaintiff provided some consulting services to
certain entities, but the services he provided yielded either no income or no
income of significance. Plaintiff testified that, rather than seek a position as a
W-2 wage earner, in November 2016, he decided to sell insurance as an
independent contractor for the New York Life Insurance Company. He is
compensated solely by the commissions he earns.
In 2015, plaintiff filed a motion to suspend, reduce, or terminate his
obligation to pay alimony. He claimed he diligently searched for but was unable
to find a position that paid or even approached $250,000 per year. After
considering defendant's response, the court determined there were material
questions of fact in dispute and, after affording the parties an opportunity to
engage in discovery, conducted a plenary hearing.
At the conclusion of the hearing, the trial court issued a written opinion
setting forth its reasons for denying plaintiff's motion. We will not recite in
detail all of the court's findings of fact and conclusions of law. Instead, because
well supported by the competent evidence presented at trial, we incorporate by
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reference the trial court's factual findings and recite only its key factual findings
and legal conclusions.
First, the court found that plaintiff was not a credible witness. The court
found his claim that, from 2013 to 2016, he diligently searched for a position
that would enable him to meet his alimony obligations, but that no such position
was available due to market or other conditions, unworthy of belief. The court
determined plaintiff moved to Maryland from California in 2013 in order to care
for his girlfriend's aging parents, an endeavor in which he primarily engaged
until he started to sell insurance for the New York Life Insurance Company
toward the end of 2016. The court noted:
Plaintiff's testimony and evidence demonstrated
that he failed to make any real effort to seek
employment [from 2013 to 2016], let alone [make the]
"robust and diligent efforts" . . . he claims. In fact, by
[p]laintiff's own admission, since 2013, he had been
attempting to secure employment . . . on only a "cursory
or opportunistic" level. . . . Throughout [p]laintiff's
testimony he revealed a complete lack of candor in his
position before the [c]ourt and in his statements to
[d]efendant's vocational expert.
[Plaintiff's decision] to accept a significantly
lower-paying job in an entirely new field, following the
loss of his prior employment was not reasonable and
appropriate under the circumstances of this case. . . .
[T]here is objective evidence that [plaintiff] was
deliberately underemployed and unreasonably avoided
job opportunities at higher income levels.
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The trial court denied plaintiff's motion to reduce or modify alimony
because he failed to show there was a substantial, involuntary, and permanent
change in his circumstances. In part, the court based its decision on the fact the
PSA required plaintiff to show he had experienced an "involuntary and non-
temporary loss of employment" if he wanted a modification in alimony.
Specifically, paragraph seven of the PSA states alimony may be subject
to review if: (a) defendant cohabitates with another as defined by the case law;
(b) plaintiff becomes disabled; (c) plaintiff experiences an "[i]nvoluntary and
non-temporary loss of employment"; or (d) plaintiff retires in good faith as
defined by "the then existing case law." The provision at issue is subsection (c).
The court reasoned that because plaintiff failed to meet the condition in this
subsection, it was obliged to enforce the terms of the PSA and deny plaintiff 's
motion.
However, apart and aside from deciding plaintiff was not entitled to relief
pursuant to the terms of PSA, the court also found plaintiff was not entitled to
relief pursuant to Lepis v. Lepis, 83 N.J. 139 (1980). In Lepis, our Supreme
Court held a supporting spouse can seek to modify his alimony obligation upon
a showing of changed circumstances that substantially affects such spouse's
need or ability to provide support. See id. at 151-53. In addition, the change in
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circumstance cannot be speculative or temporary. Id. at 151. Here, the trial
court found plaintiff failed to meet the standards espoused in Lepis to warrant
modifying his obligation to pay alimony.
Before the trial court, plaintiff argued the 2014 enactment of N.J.S.A.
2A:34-23(k), supported his application to modify or terminate alimony.
Although the court in fact considered some of the factors in N.J.S.A. 2A:34-
23(k), which became effective on September 10, 2014, see L. 2014, c. 42, §1,
the court ultimately concluded N.J.S.A. 2A:34-23(k) did not apply to this matter.
In addition to arguing he was entitled to a reduction in the amount of
alimony he was obligated to pay because of his claimed inability to find a
position that enabled him to afford paying defendant $6000 per month, plaintiff
also argued there was a change in defendant's financial circumstances for the
better since the parties were divorced. Plaintiff introduced evidence that when
defendant's mother died in June 2016, defendant acquired a total of $498,079.55,
which defendant and her mother held in joint accounts with the right of
survivorship. In addition, defendant acquired her mother's former home.
According to defendant, the real property was worth approximately
$355,000. Plaintiff contended the real property was worth between $476,000
and $561,577, but even if the real property were worth only what defendant
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claimed, the acquisition of the joint accounts and the real property enhanced
defendant's ability to maintain the standard of living enjoyed during the
marriage, warranting a reduction if not elimination of alimony.
Other than state defendant was credible, and that plaintiff's counsel's
attempts to impeach defendant about the value of her mother's home "failed due
to the significant proofs" provided by defendant about the condition of that
home, the court did not address whether the amount of money in the joint
accounts and the value of the real property, even as valued by defendant,
warranted a modification of alimony.
Finally, the court rejected plaintiff's application for counsel fees, finding
plaintiff did not show defendant had a superior ability to pay fees or that
defendant had acted in bad faith.
II
On appeal, plaintiff asserts the following arguments for our consideration:
POINT I: THE TRIAL COURT'S FACTUAL
FINDINGS, AS WELL AS THE ILLOGICAL
INFERENCES, DEDUCTIONS, AND
CONCLUSIONS DRAWN THEREFROM, ARE
MANIFESTLY UNSUPPORTED BY AND
INCONSISTENT WITH THE TOTALITY OF THE
SUBSTANTIAL, VOLUMINOUS, UNDISPUTED,
AND LARGELY UNCHALLENGED EVIDENCE
AND TESTIMONY ADDUCED AT TRIAL AND
OFFENDS THE INTERESTS OF JUSTICE.
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POINT II: THE TRIAL COURT MISAPPLIED AND
FAILED TO APPLY APPROPRIATE LAW IN
DENYING PLAINTIFF'S MOTION TO
SUSPEND/REDUCE/TERMINATE/STAY
ALIMONY.
POINT III: PLAINTIFF SHOULD HAVE BEEN
AWARDED ATTORNEY FEES.
"In our review of a Family Part judge's motion order, we defer to factual
findings 'supported by adequate, substantial, credible evidence' in the record."
Landers v. Landers, 444 N.J. Super. 315, 319 (App. Div. 2016) (quoting Gnall
v. Gnall, 222 N.J. 414, 428 (2015)). "Reversal is warranted when we conclude
a mistake must have been made because the trial court's factual findings are
'manifestly unsupported by or inconsistent with the competent, relevant and
reasonably credible evidence as to offend the interests of justice . . . .'" Ibid.
(quoting Rova Farms Resort, Inc. v. Invr's Ins. Co. of Am., 65 N.J. 474, 484
(1974)).
We accord special deference to the expertise of the Family Part in its
application of legal principles to family disputes. Cesare v. Cesare, 154 N.J.
394, 412-13 (1998). "However, when reviewing legal conclusions, our
obligation is different; '[t]o the extent that the trial court's decision constitutes a
legal determination, we review it de novo.'" Landers, 444 N.J. Super. at 319
A-4716-16T1
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(alteration in original) (quoting D'Agostino v. Maldonado, 216 N.J. 168, 182
(2013)).
In his first argument point, plaintiff contends the trial court 's factual
findings are unsupported by the evidence. We disagree. Although the trial court
failed to make findings about whether the assets defendant acquired when her
mother died affected the amount of alimony she receives, the trial court's factual
findings are otherwise amply supported by the substantial credible evidence, and
we discern no basis to disturb those findings. Apart from the court 's lack of
findings about defendant's change in circumstances after her mother's death, we
conclude further discussion in a written opinion about the quality of the court's
factual findings is unnecessary. R. 2:11-3(e)(1)(E).
Plaintiff next argues the trial court did not apply or misapplied the
appropriate law when it considered his application to reduce or terminate
alimony. He contends the court treated paragraph seven of the PSA as if it were
an anti-Lepis clause and, thus, the court erroneously limited its consideration of
whether plaintiff was entitled to a reduction in alimony on whether he suffered
an involuntary and non-temporary loss of employment.
An anti-Lepis clause is a provision in a PSA in which the parties waive
modification of alimony based on a change of circumstances. See Morris v.
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Morris, 263 N.J. Super. 237, 240-43 (App. Div. 1993) (enforcing an "anti-Lepis
provision" which expressly barred application of the Lepis standard to requests
for modifications of alimony obligation). Here, the PSA does not include a
provision barring a modification or termination of alimony based on a change
of circumstances. Further, even if the trial court regarded paragraph seven of
the PSA to be an anti-Lepis clause, clearly the court did not allow such clause
to preclude it from applying Lepis – as plaintiff contends is appropriate – to
determine whether plaintiff was entitled to the relief he requested based on a
change of circumstances.
As stated, under Lepis, a change in circumstance warranting a
modification of alimony includes increases or decreases in income or need.
Lepis, 83 N.J. at 150-53. The change must substantially affect need or ability
to provide support, and cannot be speculative or temporary. See id. at 151-53.
Here, we have no quarrel with the trial court's findings that, pursuant to Lepis,
plaintiff failed to show the requisite change in circumstances to justify a
reduction or termination of alimony based upon his change in circumstances.
Specifically, plaintiff failed to show that he was unable to find a job that enabled
him to pay the alimony he agreed to provide to defendant in the PSA.
A-4716-16T1
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Although in 2013 plaintiff lost his position with Lumenergi, Inc., for
which he was compensated $250,000 per year, there is insufficient evidence he
could not find a position that would pay a comparable sum, and there is ample
evidence he did not make a diligent effort to find such employment. Stated more
simply, the trial court's essential finding, that if plaintiff tried he could have
found a job that paid him approximately $250,000 per year, is well-supported
by the evidence.
However, when before the trial court, plaintiff raised another issue on the
question of changed circumstances, which it failed to address. Plaintiff
contended the assets defendant received as a result of her mother's death
bolstered her ability to contribute to her own support and, consequently, there
should be a concomitant reduction in the amount of alimony he pays.
First, we note there is nothing about the assets defendant received as a
result of her mother's death that insulates them from a Lepis motion. See
Aronson v. Aronson, 245 N.J. Super. 354, 363 (App. Div. 1991) ("[T]here is
nothing about plaintiff's inheritance income which entitles it to insulation from
a Lepis motion."). Second, we have recognized the failure "to address [a
supporting spouse's] claims of changed circumstances based on an enhancement
in his former wife's income" is error warranting reversal of the denial of relief
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and a remand for further proceedings. Stamberg v. Stamberg, 302 N.J. Super.
35, 42 (App. Div. 1997); see also Aronson, 245 N.J. Super. at 364 (when support
of "an economically dependent spouse is at issue," consideration must be given
to "the ability of that spouse to contribute to . . . her needs"). Because the court
did not address the impact the acquisition of the joint accounts and the real
property had upon defendant's ability to support herself, we remand this matter
so the trial court can provide to the parties, within sixty days, its findings of fact
and conclusions of law on this issue.
The final argument plaintiff raises on the question of alimony is that the
trial court erred when it failed to consider all of the factors in N.J.S.A. 2A:34 -
23(k) before denying his motion. In our view, the statute does not apply and,
therefore, it is immaterial the court failed to consider all of the factors.
N.J.S.A. 2A:34-23(k) applies to a "non-self-employed party." Plaintiff
was self-employed at the time of the plenary hearing and when the court
rendered its decision. Plaintiff was working as an independent contractor selling
insurance. There is no evidence the few engagements he had as a consultant
from 2013 to 2016 were as an employee. Therefore, this statute does not apply
to the facts of this case.
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Second, although this statute states it became effective September 10,
2014, its application to provisions of pre-existing orders and agreements is
guided by the bill adopting the alimony amendments, which adds a provision
declaring the new law non-retroactive with respect to certain prior alimony
agreements and judicial orders. See Spangenberg v. Kolakowski, 442 N.J.
Super. 529, 538 (App. Div. 2015). The bill states:
This act shall take effect immediately and shall not be
construed either to modify the duration of alimony
ordered or agreed upon or other specifically bargained
for contractual provisions that have been incorporated
into:
a. a final judgment of divorce or dissolution;
b. a final order that has concluded post-judgment
litigation; or
c. any enforceable written agreement between
the parties.
[L. 2014, c. 42, § 2.]
"This additional statement signals the legislative recognition of the need to
uphold prior agreements executed or final orders filed before adoption of the
statutory amendments." Spangenberg, 442 N.J. Super. at 538. Here, the parties'
PSA was incorporated into the amended dual final judgment of divorce in 2009
and the PSA contains specifically bargained for contractual provisions.
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Finally, plaintiff contends the court erred when it denied him counsel fees.
This argument is devoid of sufficient merit to warrant discussion in a written
opinion. R. 2:11-3(e)(1)(E). We merely note that the court did not abuse its
discretion because it did not enumerate every factor in Rule 5:3-5(c) when it
made its decision on fees. See Reese v. Weis, 430 N.J. Super. 552, 586 (App.
Div. 2013) (affirming the denial of attorney's fees where the trial court found
that each party was capable of paying their own fees and that neither party had
acted in bad faith, despite the court's failure to address every factor under Rule
5:3-5(c)).
Affirmed in part and remanded for further proceedings consistent with this
opinion. We do not retain jurisdiction.
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