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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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I am in the process of finalizing a divorce agreement in NJ

Customer Question

I am in the process of finalizing a divorce agreement in NJ with my wife, and had gone to court today to finalize and sign off on the agreement. In the course of going to the court by chance, I had called my accountant/financial advisor who advised me that more than half of my income stream could be at risk as a result of of changes to NY State regulations, the length of time that NY State pays for services rendered in a company that my partner ownes and which provides me with that income. The judge was outraged that I requested a change to the plan at the last second and had released a motion that was pending that ordered receivership on my company to occur.
If I'm currently required to pay for alimony and child support, and the judge orders receivership who is controlling the checkbook of my company, how can I comply with the original order to pay for temporary child support if the $ that I earn is being held up in receivership. The judge has also ordered a forensic accountant to review the books and investigate my claims. My attorney thinks that this may turn out to be a good thing so that everyone realizes the state that the companies are in financially. What can I expect in receivership? I have been told that when this occurs that the business is basically done?
Submitted: 4 years ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 4 years ago.

Thank you for your question. I am a licensed New Jersey professional. Please permit me to assist you with your concerns.

That is a good question. A receivership is essential a guardianship. A trustee is set in place that ends up reviewing all debts and then prioritizing them. So if this debt is owed to you by the company, you become the creditor and it becomes up to the trustee to figure out the scheduling of when and how you would be paid out. I tend to also agree with your attorney that this may be a good thing--judges realize that receiverships are beyond the control of parties unless you are part owner, and showing that funds will be owed and coming outside your control may extend or modify your payment plans based on this motion t the court. This is literally one of a few situations where requesting a change last minute is justified unless you knew of the receivership in the past and did not choose to act upon it.

Good luck.