Bankruptcy Trumps Divorce. The Second Circuit held when marital assets have been awarded to the wife in a state court matrimonial proceeding, those assets do become part of a husband's bankruptcy estate if a Chapter 7 petition is filed after the state court's decision had been rendered, but before the state court judgment is entered. The District Court had held that entry of the judgment was merely ministerial and that the assets could be taken by the wife, but the Second Circuit, in a per curiam decision, vacated and remanded the decision.
The decision in Musso v. Ostashko can be found here.
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