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A Spouse's Bankruptcy Trumps Divorce
An ex-wife who was awarded all of the martial assets in a bitter divorce was nevertheless unable to take possession of those assets because they were part of the ex-husband's bankruptcy estate.
A federal appeals panel so held, reasoning that because the matrimonial judgment was docketed after the filing of the Chapter 7 petition, the marital assets remained part of the bankruptcy estate subject to distribution by the bankruptcy court. Musso v. Ostashko, 05-6395-bk., 468 F.3d 99 (2d Cir. Nov. 6, 2006). Judges Barrington D. Parker, Richard C. Wesley and Peter W. Hall reversed the decision of Eastern District Judge Charles P. Sifton, in which he held that Tanya Ostashko's interest in marital property vested upon the granting of the court's judgment of divorce (Ostashko v. Ostashko, 333 B.R. 625).
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