In a family law motion, the respondent sought a preservation order over the proceeds of sale of the matrimonial home pending determination of equalization.
The moving party argued that the funds should remain secured because the other spouse would likely owe a significant equalization payment and the property represented the primary realizable asset.
The court found a strong prima facie case that an equalization payment would be owed and that the inheritance used toward the matrimonial home likely lost its excluded character.
However, the court permitted the purchase of a replacement property provided the equity from the matrimonial home effectively transferred to the new property and remained available as security.
A charge was ordered against the new property under the Family Law Act to preserve the responding party’s equalization claim.
