Church May Be Marital Asset In NY Divorce Proceeding

In CH v. RH, (NY Sup. Ct., Nassau, Nov. 13, 2007), a New York judge, rejecting Establishment Clause concerns, held that a Church could be a marital asset in a divorce proceeding. At issue is the church building, catering hall and rental business of Grace Christian Church in Brooklyn. According to the court:

plaintiff claims that the Church is a marital asset because it is actually the defendant's "business" which he operates as his "personal piggy bank." Specifically, the plaintiff claims that the defendant provided $50,000.00 of their marital money to the Church as start-up capital; defendant controls all of the finances of the Church and makes all financial decisions, defendant refuses to make any financial disclosures to the Church's Board of Directors and the Church Administrator, hides his finances from the Church elders, determines his own income, refers to the Church as "my Church" and dismisses anyone who challenges his operation and finances of the Church.

The court concluded that if it is shown that the church is the husband's "alter ego", it will be valued as a marital asset for purposes of determining equitable distribution. The issue is one of first impression in New York. Newsday, the AP and the New York Daily News all carried reports on the case earlier this week.