21 year old property settlement

[carjc1]

What is the name of your state? Louisiana

Last month my ex-wife of 21 years (we were divorced in 1985) filed a QDRO to have part of my pension and part of my savings plan at the time of our divorce. The savings plan only had about $1700 in it at the time, and she is asking for 4% per year interest on the 50% she claims ($850). Is she due this interest at this rate? This is pre 401K and there is no way to determine what the amount would equal today. The other part is the pension. I work for a large chemical company, and I was not vested at the time of our divorce (it took 10 years to be vested then)--so there was no pension at that time. We never had a property settlment because of a Chapter 7 bankruptcy that took everything. I have been happily re-married for almost 20 years now--and had just started planning my retirement. Can she ask for a part of this pension when I was not vested at the time of our divorce? We were married for 8 1/2 years, and my employment with this company during our marriage was for 8 years. Thanks for any help you can give.

[Bali Hai]

Originally Posted by carjc1

What is the name of your state? Louisiana

Last month my ex-wife of 21 years (we were divorced in 1985) filed a QDRO to have part of my pension and part of my savings plan at the time of our divorce. The savings plan only had about $1700 in it at the time, and she is asking for 4% per year interest on the 50% she claims ($850). Is she due this interest at this rate? This is pre 401K and there is no way to determine what the amount would equal today. The other part is the pension. I work for a large chemical company, and I was not vested at the time of our divorce (it took 10 years to be vested then)--so there was no pension at that time. We never had a property settlment because of a Chapter 7 bankruptcy that took everything. I have been happily re-married for almost 20 years now--and had just started planning my retirement. Can she ask for a part of this pension when I was not vested at the time of our divorce? We were married for 8 1/2 years, and my employment with this company during our marriage was for 8 years. Thanks for any help you can give.

With no property settlement what is the QDRO based upon? The QDRO should have been ordered by the judge in 1985.

[carjc1]

The QDRO is based on the savings plan at the time (Dec. '84 numbers) and uses a formula of 8 (years we were married when I was employed) over 30 (my current length of employment). So she would get half of 8/30 or around 13.3% of my retirement pay. And once she is rewarded this I can never get it back, no matter what happens to her.

[nextwife]

Was it, or any retirement, addressed in the divorce? Are you entitled to get 8 years of HER retirement because YOU were also married eight years?

In a 401K, or IRA, the split is on what the party accrued into retirement DURING the marriage, not on the years one is married. Example, a young couple starting out might be making NO contributions into an 401K the firsat few years of marriage, and during an eight year marriage, there may only be three years during which they contributed and accrued 401K monies.

How is she determining what accrued during the marriage? Because it is usually NOT a equal amount per year. It increases as one's salary increases. Thus, pensions, etc, should NOT be divided by the number of years, it needs to be based on the income only during the time the party accrued benefits during the marriage. So, for example, taking the total accrued retirement benefit, and dividing by so many years of employment, would NOT reflect what the actual benefit would likely have been. Because twenty one years ago you would have been at a much lower salary level.

My company transitioned from pension to "cash balance plan" a few years ago. The majority of what accrued (in lieu of pension) was in the later years.

Get an attorney. Argue that the divorce is a settled matter and no issues were left open.

[LdiJ]

Originally Posted by nextwife

Was it, or any retirement, addressed in the divorce? Are you entitled to get 8 years of HER retirement because YOU were also married eight years?

In a 401K, or IRA, the split is on what the party accrued into retirement DURING the marriage, not on the years one is married. Example, a young couple starting out might be making NO contributions into an 401K the firsat few years of marriage, and during an eight year marriage, there may only be three years during which they contributed and accrued 401K monies.

How is she determining what accrued during the marriage? Because it is usually NOT a equal amount per year. It increases as one's salary increases. Thus, pensions, etc, should NOT be divided by the number of years, it needs to be based on the income only during the time the party accrued benefits during the marriage. So, for example, taking the total accrued retirement benefit, and dividing by so many years of employment, would NOT reflect what the actual benefit would likely have been. Because twenty one years ago you would have been at a much lower salary level.

My company transitioned from pension to "cash balance plan" a few years ago. The majority of what accrued (in lieu of pension) was in the later years.

Get an attorney. Argue that the divorce is a settled matter and no issues were left open.

Normally I would agree with "get an attorney". HOWEVER...if she is really only claiming 850.00 plus interest at 4% per annum, his cost of an attorney may exceed any savings. However if she is really going after his pension as well...then yes, I would be best for him to get an attorney.

[carjc1]

Yes, she is going after my pension--this is the main battle. Can anyone out there answer the question, can she sue for part of my retirement when at the time of our divorce I was not yet vested? If the QDRO was done then she would have gotten nothing (50% of no retirement is nothing). How can she come back after 20+ years and say "OK, now he's vested I want a piece of it." She has not pension plan--she has never worked anywhere long enough to earn one.

[BelizeBreeze]

Go read
[URL="http://216.109.125.130/search/cache?p=statute+of+limitations+property+settlement+louisiana&fr=FP-tab-web-t&toggle=1&ei=UTF-8&u=www.lasc.org/opinions/98c0012.pc.pdf&w=statute+limitations+property+settlement+louisiana&d=NCKIlTmtMycY&icp=1&.intl=us"]SUPREME COURT OF Louisiana NO. 98-C-0012 Carol Johnson Schexnayder v. Frank Edward Holbert[/URL]

Then come back and tell us what you've learned.

[Bali Hai]

Originally Posted by carjc1

Yes, she is going after my pension--this is the main battle. Can anyone out there answer the question, can she sue for part of my retirement when at the time of our divorce I was not yet vested? If the QDRO was done then she would have gotten nothing (50% of no retirement is nothing). How can she come back after 20+ years and say "OK, now he's vested I want a piece of it." She has not pension plan--she has never worked anywhere long enough to earn one.

Yes she can sue and is entitled to that portion of your retirement that accumulated during the marriage that would become part of the property settlement in your divorce whether you were vested at the time or not.

However, that is not the issue in your case.

[Bali Hai]

Originally Posted by BelizeBreeze

Go read
[URL="http://216.109.125.130/search/cache?p=statute+of+limitations+property+settlement+louisiana&fr=FP-tab-web-t&toggle=1&ei=UTF-8&u=www.lasc.org/opinions/98c0012.pc.pdf&w=statute+limitations+property+settlement+louisiana&d=NCKIlTmtMycY&icp=1&.intl=us"]SUPREME COURT OF Louisiana NO. 98-C-0012 Carol Johnson Schexnayder v. Frank Edward Holbert[/URL]

Then come back and tell us what you've learned.

Chalk one up for the good guys.

[carjc1]

My pension is my main concern. If this is not the issue in my case, what is? The Louisiana law is so vague on this issue--the case stated is for ex-military and concerns federal law.

[LdiJ]

You should probably consult a local attorney. I am not suggesting that you spend the money to retain one at this point...but consult with one. I don't know that anyone here is particularly familiar with Louisiana law....and your question is probably a bit too complex for an internet message board.