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WIFE NOT ENTITLED TO INTEREST ON A LATE LUMP SUM PAYMENT, HUSBAND NOT ENTITLED TO RECOUP OVERPAYMENT OF MAINTENANCE (SECOND DEPT).

The Second Department, under the particular facts, determined the wife was not entitled to post or pre-judgment interest on a late $1,000,000 lump sum payment which was part of a stipulation of settlement in this divorce action. The court noted that the husband was not entitled to recoup an overpayment of maintenance/child support as a matter of public policy:

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… [T]he award to the defendant of $19,241.31, representing an alleged overpayment of maintenance, was improper. The recoupment of overpayments of maintenance and/or child support is generally against public policy, since those payments are deemed to have been spent for that purpose… . Further, voluntary payments are generally not credited against amounts currently due … . The voluntary payments were made, at least in part, because the plaintiff was unable to satisfy certain mortgage liens on the real property transferred to her because the defendant did not transfer the $1,000,000 distributive award to her in a timely manner. O’Donnell v O’Donnell, 2017 NY Slip Op 06540, Second Dept 9-20-17

FAMILY LAW (WIFE NOT ENTITLED TO INTEREST ON A LATE LUMP SUM PAYMENT, HUSBAND NOT ENTITLED TO RECOUP OVERPAYMENT OF MAINTENANCE (SECOND DEPT))/DIVORCE (WIFE NOT ENTITLED TO INTEREST ON A LATE LUMP SUM PAYMENT, HUSBAND NOT ENTITLED TO RECOUP OVERPAYMENT OF MAINTENANCE (SECOND DEPT))/MAINTENANCE (WIFE NOT ENTITLED TO INTEREST ON A LATE LUMP SUM PAYMENT, HUSBAND NOT ENTITLED TO RECOUP OVERPAYMENT OF MAINTENANCE (SECOND DEPT))/CHILD SUPPORT (WIFE NOT ENTITLED TO INTEREST ON A LATE LUMP SUM PAYMENT, HUSBAND NOT ENTITLED TO RECOUP OVERPAYMENT OF MAINTENANCE (SECOND DEPT))

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