Q: If divorce judgment was for EEC/ED to be paid post tax $5,000 per month with 9% interest until paid off, can i prepay?
The judgment does NOT include language that you can prepay at any time without any penalties. I have been paying for 5 years. If I continue to pay the $5,000 per month, not only will it take 40 more years to complete, but my ex wife will have received a few million dollars over the initial amount of $9,600,000 - even with simple interest. I just want to pay the balance off (about $642,000) with larger payments, or with a single payoff. Can I do this? I just read about a judgment in NJ for interest to continue as ordered, because the recipient had based her financial planning on the 11% interest for 10 years: Rosen v. Rosen, 225 N.J. Super. 33, 541 A.2d 716 (App. Div. 1988). Is this relevant to me, and would this be the case in NY??? Honestly the last thing I want to do is file or litigate, and spend even more money, if I am only going to lose again...
A: Your Stipulation of Settlement, or Decision and Order (if you had a trial on this issue) should include language that you can prepay at any time without any penalties. Even if they do not, contain this language, you can tender payment in full. If your ex wife refuses to accept the pre payment, then you can make an application to the court (by way of motion) for the right to do so.
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