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Keywords

settlementstatutetrialmotionwillleasedivorcecase lawlegislative intent

contractsettlementdefendanttrialmotionwilldivorce

Related Cases

Smith v. Smith, 72 N.J. 350, 371 A.2d 1

Facts

Mr. and Mrs. Smith were married in 1938 and entered into a separation agreement in 1965 after a tumultuous marriage. The agreement provided for support payments and division of certain assets but was characterized differently by each party. The wife later sought to have the agreement set aside, claiming it was unfair and unconscionable, and requested equitable distribution of marital assets after the enactment of new divorce laws in 1971. The trial court initially ruled that the agreement barred further distribution, but subsequent case law prompted the wife to seek a new trial on the issue of equitable distribution.

The parties to this suit, husband and wife, entered into a separation agreement in 1965. Some six years later, on September 13, 1971, significant amendments to our divorce law became effective.

Issue

Whether the earlier separation agreement barred the wife's right to seek equitable distribution of marital assets under the new divorce laws.

To what extent, if at all, should the existence of an earlier separation agreement affect this right?

Rule

An earlier separation agreement will bar equitable distribution only if it qualifies as a property settlement and is shown to be fair and equitable.

We now hold that where equitable distribution is sought pursuant to N.J.S.A. 2A:34—23, an earlier separation agreement will be a bar to such relief only if, and to the extent that, it can qualify as a property settlement, and can likewise be shown to have been fair and equitable.

Analysis

The court analyzed the nature of the separation agreement and determined that it was a support agreement rather than a property settlement. It noted that the agreement did not provide for a fair distribution of marital assets and that the wife had not released any rights she did not possess at the time of the agreement. The court emphasized the legislative intent behind the equitable distribution statute and the need for fair arrangements to be upheld.

Tested by the standard described above it is clear that the contract before us is a support agreement and nothing more. It has none of the characteristics of a property settlement agreement.

Conclusion

The court affirmed the trial court's order granting the wife's motion for a new trial on the issue of equitable distribution and remanded the case for further proceedings.

The trial court's order granting defendant's motion for a new trial is affirmed and the cause is remanded to that court for further proceedings consistent with what has been said above.

Who won?

Wife; she prevailed because the court found that the separation agreement did not bar her right to seek equitable distribution, as it was deemed a support agreement.

The trial court found against Mrs. Smith on this issue, holding that the agreement had been voluntarily entered into and was fair in its terms.

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