Carreon v. Morales

698 S.W.2d 241, 1985 Tex. App. LEXIS 7328
CourtCourt of Appeals of Texas
DecidedOctober 2, 1985
Docket08-85-00067-CV
StatusPublished
Cited by14 cases

This text of 698 S.W.2d 241 (Carreon v. Morales) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carreon v. Morales, 698 S.W.2d 241, 1985 Tex. App. LEXIS 7328 (Tex. Ct. App. 1985).

Opinion

OPINION

OSBORN, Justice.

In the trial court, Appellant sought to partition Appellee’s retirement benefits and life insurance which she claimed had not been divided in a 1969 divorce decree. The trial court denied the relief. We affirm.

These parties were married in 1949 and divorced in 1969. The divorce decree approved a property settlement agreement. The agreement provided for a division of certain specified community property. It did not mention any retirement plan or life insurance. The agreement did contain an opening paragraph with a recital of the parties’ intention which states:

WHEREAS, it is the desire of the parties hereto to make a complete and final settlement of all their community property either now owned by them or hereafter acquired by either of them before said divorce becomes final and a division of the community debts, and the parties having reached an agreement as to the division of the property and debts subject to the approval of the Court:

The agreement also contained a residuary or catch-all provision which stated:

Both parties agree that should there be any community property not specifically provided for in the above paragraphs, then such property shall hereafter be the separate property of the party in whose possession and control it was as of the date the divorce herein becomes final.

In 1982, Appellant filed this suit alleging that the divorce decree did not dispose of the parties’ community interest in the retirement benefits and life insurance policy provided by Appellee’s employer, the Civil Service Personnel, Department of the Army, Fort Bliss, Texas, where he had been employed since 1948. Appellant sought a partition of these undivided assets. Appellee answered that these assets were disposed of through the residuary clause in the property settlement agreement.

Civil service retirement benefits are based upon age and years of service and the annuity is calculated upon a formula involving the employee’s average pay and years of service. 5 U.S.C.A., secs. 8336 and 8339. Each employee pays a percentage of his basic pay toward the cost of the retirement program. 5 U.S.C.A., sec. 8334. An employee is entitled to a lump-sum payment upon proper application in lieu of an annuity. 5 U.S.C.A., sec. 8342. An employee may elect whether to have a spouse or former spouse receive a survivor’s annuity. 5 U.S.C.A., sec. 8341. Thus, it is the employee who controls the benefits and makes the election as to whether any annuity is paid and whether there is a survivor’s annuity and the beneficiary of such annuity. 5 U.S.C.A., secs. 8331-8348; Valdez v. Ramirez, 574 S.W.2d 748 (Tex.1978). The *243 employee also controls payment of life insurance proceeds by designating the beneficiary. 5 U.S.C.A., sec. 8705.

Appellee filed a motion for summary judgment in which he asserted (1) the cause of action was barred by the four-year statute of limitations, (2) the property was divided by the residuary clause and (3) the 1969 judgment was final and could only be attacked by a bill of review. The property settlement agreement was attached to the motion. Appellant also filed a motion for summary judgment. Each party filed a response to the other party’s motion for summary judgment. The court entered a judgment that the plaintiff take nothing by her suit.

By two points of error, Appellant contends the trial court erred in granting Appellee’s motion for summary judgment and that the trial court erred in denying Appellant’s motion for summary judgment. The rule is well established in this state that where a divorce decree fails to provide for a division of community property, the husband and wife become tenants in common or joint owners thereof. Busby v. Busby, 457 S.W.2d 551 (Tex.1970). In such a case, either spouse may at a later time seek partition of the undivided assets. Taggart v. Taggart, 552 S.W.2d 422 (Tex.1977); Busby v. Busby, supra. A bill of review is not required to divide such assets. Harrell v. Harrell, 692 S.W.2d 876 (Tex.1985).

First, we conclude that Appellant’s suit is not barred by limitations. The Ap-pellee had not retired when this case was decided by summary judgment. No civil service benefits had been paid and since Appellee was alive there had been no claim made under the life insurance policy, which apparently only provided death benefits. There had been no repudiation by Appellee of the Appellant’s rights, if any, as a coten-ant. The defense of limitations is not valid. Horlock v. Horlock, 614 S.W.2d 478 (Tex.Civ.App.—Houston [14th Dist.] 1981, writ ref’d n.r.e.); Dessommes v. Dessommes, 461 S.W.2d 525 (Tex.Civ.App.—Waco 1970, no writ).

Next, we turn to the issue of what effect the residuary or catch-all paragraph had on the retirement benefits and life insurance which was not mentioned or divided in the property settlement agreement which the trial court approved, confirmed and ratified. Several eases have considered similar provisions and most of them have been analyzed in the recent article by Jim Loveless entitled “Post Divorce Partitions — Are Catch-All Clauses Any Good?” Marriage Dissolution, State Bar of Texas (1982).

The Appellant relies upon the holdings in Dessommes v. Dessommes, supra, and Yeo v. Yeo, 581 S.W.2d 734 (Tex.Civ.App.—San Antonio 1979, writ ref’d n.r.e.). Both of these cases involved retirement benefits. In the Dessommes case, the decree ordered that each party “keep the property now in possession of such party as their own separate property and estate.... ” The court concluded that there was nothing in the record to indicate that the fund in question was “in the possession” of either the husband or the wife or that it was not held by the employer and the insurance company. In a second appeal, the court concluded that “possession” could not be interpreted as including intangible contract rights. Dessommes v. Dessommes, 505 S.W.2d 673 (Tex.Civ.App.—Dallas 1973, writ ref’d n.r.e.).

In Yeo v. Yeo, supra, the residuary clause in the settlement agreement contained a provision that the wife released and quitclaimed to her husband all his property and estate therein set aside to him “and all other property of whatever nature, separate or community, in his possession or claimed by him * * *." The court held that the husband’s interest in the military retirement benefits was not a “claim” or “property in [his] possession.” In reaching that result, the court relied in part upon the holdings in Thompson v. Thompson, 500 S.W.2d 203 (Tex.Civ.App.—Dallas 1973, no writ) and Simmons v. Simmons,

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Bluebook (online)
698 S.W.2d 241, 1985 Tex. App. LEXIS 7328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carreon-v-morales-texapp-1985.