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When Bankruptcy Courts Give Deference to Matrimonial Proceedings

In In re Moche, No. 25-11831, 2026 WL 657433, 2026 Bankr. LEXIS 561, __ B.R. __ (Bankr. S.D.N.Y. Mar. 9, 2026), the U.S. Bankruptcy Court for the Southern District of New York lifted the bankruptcy automatic stay to permit the resumption of divorce proceedings in New York State court to determine the status of certain marital assets.
 
While the bankruptcy court lifted the stay, it only did so to allow the matrimonial court to adjudicate the respective rights of the husband and wife to marital property while the bankruptcy court retained exclusive authority over the sale and ultimate distribution of estate assets determined to belong to the husband (who filed the bankruptcy case).

In this New York Law Journal article, Loeb Restructuring & Bankruptcy partner Noah Weingarten and Anita Rojas Carroll discuss the Southern District of New York Bankruptcy Court’s decision in In re Moche, examining how the decision illustrates the coordinated roles of bankruptcy and matrimonial courts and underscoring the deference bankruptcy courts often give to state courts on family law matters.

To read the full article, please see the New York Law Journal’s website (subscription may be required).