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Decisions of Interest

By ALM Staff | Law Journal Newsletters |
April 01, 2003

Court Properly Ordered Audit of Finances

The Second Department held that the Supreme Court, Rockland County, properly ordered an audit of the defendant husband's family's corporation, as he had not been forthcoming with his financial information and his finances were entwined with the corporation's. Pechman v. Pechman, 2003 N.Y. App. Div. LEXIS 2327, (Feuerstein, JP, Friedmann, Schmidt and Mastro, JJ).

The defendant husband appealed an order granting plaintiff wife's motion to appoint an independent accountant to audit the financial records of nonparty Lexington Glass Company Inc., and to evaluate defendant's income. The order was based on the Supreme Court's finding that the husband was half owner of a closely held family glass business for the 3 years previous to the filing of the divorce. One month after the action was filed, however, the company's accountant had been instructed to amend the previous 3 years' tax returns to reflect that the husband's father was the sole owner of the company.

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