Commodity Futures Trading Commission v. Walsh, et al., 17 N.Y.3d 162, 927 N.Y.S.2d 821 (2011)

On certified questions from the Second Circuit Court of Appeals resolving issues of first impression involving the interplay between equitable distribution law, debtor-creditor law and “significant public policy considerations,” New York State’s highest Court ruled 7-0 in client’s favor on whether an ex-spouse of a criminal defendant can have a legitimate claim to fraud proceeds received pursuant to a valid New York divorce agreement and ruled 5-2 in client’s favor on whether a divorcing spouse can be deemed to have paid “fair consideration” for fraud proceeds received pursuant to a divorce if he or she acted in good faith and provided “intangible consideration” within the meaning of the equitable distribution laws in the form of spousal and parental services providing during the course of a marriage.