Summary
In Palitz, where there was a question as to whether assets of a dissolved corporation constituted marital property, the lower court had required $11 million to be placed in escrow in an interest bearing account.
Summary of this case from Kahn v. KahnOpinion
May 23, 1985
Appeal from the Supreme Court, New York County (S. Ostrau, J.).
The issue of whether all or part of the assets of the American Rediscount Corporation constitute marital property remains for resolution in this action. Special Term fashioned a suitable interim remedy by allowing defendant and the children of the marriage unrestrained access to more than $11 million in proceeds from the corporation's dissolution while still preserving an identifiable fund in the event it is determined that these assets did constitute marital property. However, as urged by defendant, an interest-bearing account does not represent a realistic way to manage funds of the magnitude herein, and we modify the order of Special Term so that other prudent investments yielding substantially greater returns can be made. Additionally, we note that the portion of the order directing American Rediscount Corporation to place the subject proceeds in escrow is moot since such turnover has apparently been accomplished and the corporation has been liquidated.
We have examined the remaining contentions of both parties and find them to be without merit.
Concur — Ross, J.P., Asch, Fein and Rosenberger, JJ.