MENKES v. MENKES (2026)

Judgment, New York County (Michael L. Katz, J.), entered September 30, 2025, to the extent appealed from, directing that the home equity line of credit associated with defendant husband's separate property residence be paid from the proceeds of sale from the parties' jointly owned property, unanimously affirmed, without costs.

Contrary to plaintiff wife's contention, there is no inconsistency between a January 10, 2025 order and the judgment of divorce.  The January 10, 2025 order determined that the Poughkeepsie residence was marital property and that the husband was not entitled to a separate property credit for the funds he contributed toward the purchase.  Nothing in the judgment of divorce alters that determination.  Rather, the judgment merely directs that the outstanding debt incurred to acquire the marital residence be satisfied from the proceeds of the sale before the remaining proceeds are divided equally between the parties (see Fields v Fields, 15 NY3d 158, 166 [2010];  see also Bishop v Bishop, 230 AD3d 1212, 1213 [2d Dept 2024];  Johnston v Johnston, 156 AD3d 1181, 1183–1184 [3d Dept 2017], lv denied 32 NY3d 1053 [2018] ).  The fact that the home equity line of credit was secured by the husband's separate property does not transform the debt into a separate property obligation for the purposes of distributing the Poughkeepsie residence.  Under the circumstances, the court providently exercised its discretion in directing that the encumbrance be satisfied from the sale proceeds before being divided equally between the husband and wife.