## Facts

- Michael J. Thieme worked for International Biometrics Group (IBG) starting in 1999; IBG principals agreed in writing to compensate him if the company was sold.
- Thieme and Bernice F. Aucoin-Thieme began cohabiting in 2002, had a child in 2003, and agreed she would forgo employment to manage the household, childcare, and rental properties while he worked extensive hours and traveled.
- Thieme acknowledged in writing that Aucoin-Thieme had sacrificed career and educational opportunities to support his career and that he should support her in recognition of that sacrifice.
- The parties married in 2010, separated about 14 months later, and executed a property settlement agreement in April 2012; a judgment of divorce was entered.
- About three months after the divorce judgment, IBG was sold and Thieme received a $2,250,000 one-time “Closing Bonus,” characterized as compensation for more than a decade of service.
- Thieme did not disclose the bonus to Aucoin-Thieme; she discovered it after he deposited $200,000 into an account that remained jointly titled and withdrew the $200,000.

## Issues

1. Whether New Jersey’s equitable distribution statute authorizes distribution of a post-divorce payment of deferred compensation, and if so, to what extent.
2. Whether equity permits a constructive trust over an additional portion of the deferred compensation based on the parties’ long premarital cohabitation, shared expectations, and one party’s reliance and contributions.

## Decision

- The Supreme Court of New Jersey affirmed that statutory equitable distribution applies only to the portion of the Closing Bonus earned during the marriage, not to the portion earned during premarital cohabitation.
- The Court reversed to the extent the lower courts limited Aucoin-Thieme’s recovery to statutory equitable distribution only, holding that a constructive trust could apply to an additional portion of the bonus to prevent unjust enrichment.
- The case was remanded for recalculation and allocation consistent with (1) apportionment for the marital-earned component under the statute and (2) any additional award under constructive-trust principles.

## Legal Principles

- Under N.J.S.A. 2A:34-23(h), equitable distribution generally extends to property acquired during the marriage and before the filing of the divorce complaint; deferred compensation is distributable only to the extent it was earned during the marriage, even if paid after divorce.
- When deferred compensation reflects work performed over time, courts may apportion it between marital and nonmarital periods rather than treat it as entirely marital or entirely separate.
- A constructive trust is an equitable remedy used to prevent unjust enrichment when one party would otherwise retain a benefit contrary to a promise, understanding, or course of conduct that induced the other party’s reliance.
- Statutory equitable distribution does not cover premarital cohabitation, but equity may supply relief where a long-term cohabitant materially contributed (economically or through services) and the parties shared an expectation that the benefit would be shared.

## Conclusion

The court held that deferred compensation paid after divorce is subject to equitable distribution only for the portion earned during the marriage, but that equity may also impose a constructive trust to award an additional share based on premarital cohabitation contributions and reliance, requiring a remand to determine the proper allocation.


Thieme v. Aucoin-Thieme, 151 A.3d 545 (N.J. 2016)