Fuentes v. Fuentes

41 V.I. 86, 1999 WL 632829, 1999 V.I. LEXIS 25
CourtSupreme Court of The Virgin Islands
DecidedAugust 5, 1999
DocketFam. No. D89/1995
StatusPublished
Cited by5 cases

This text of 41 V.I. 86 (Fuentes v. Fuentes) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fuentes v. Fuentes, 41 V.I. 86, 1999 WL 632829, 1999 V.I. LEXIS 25 (virginislands 1999).

Opinion

STEELE, Judge

MEMORANDUM OPINION

Two issues were expressly reserved by this Court in its previous memorandum opinion entitled Fuentes v. Fuentes, 38 V.I. 29 (Terr. Ct. 1997). Specifically, the Court had chosen to reserve the issues involving the equitable distribution of the Plaintiff's pension plan and the Defendant's request for permanent alimony. This deferment was to last until such time as pension benefits were actually distributed to the Plaintiff. As the Plaintiff is now retired and is indeed receiving said benefits, the Court finds that the remaining two issues are ripe for determination.

The importance of this opinion is recognized by the Court. A definite need exists in the Territory to resolve the confusion which surrounds the question of ownership of pension plans after a divorce. It is therefore the intent of this Court, through this opinion, to bring to an end any such confusion. In the process of accomplishing this task, the Court shall provide the means for calculating the distribution of the Plaintiff's pension plan and address the request that permanent alimony be awarded to the Defendant.

I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY

An extensive factual background of this matter has previously [88]*88been detailed by the Court.1 As such, this opinion shall only discuss those facts which are deemed pertinent to the issues being decided on this date.

The Plaintiff, Felipe N. Fuentes, and the Defendant, Ayres Fuentes, were wed on August 28, 1977. Although they separated from one another sometime in January of 1990, the Plaintiff continued to extend some monetary assistance to the Defendant after this separation. On May 1, 1995, the Plaintiff filed a divorce complaint, which ultimately led to a divorce decree being entered into by this Court on January 3, 1996. Nevertheless, four issues remained unresolved, and were subsequently addressed by this Court in Fuentes v. Fuentes, 38 V.I. 29 (Terr. Ct. 1997). In that opinion, the Court awarded the Defendant a seven year life estate in the marital homestead,2 determined that the Plaintiff's pension plan was marital property, and denied Defendant's request for attorney fees. However, the issues concerning the Defendant's request for permanent alimony and the equitable distribution of the pension plan were expressly reserved by this Court for a future hearing.

It is uncontroverted that the Plaintiff was employed with the Government of the Virgin Islands during his entire marriage to the Defendant. As a government employee, Virgin Islands law mandated that the Plaintiff be a member of the Government Employee Retirement System, hereinafter referred to as "GERS." Furthermore, this mandatory retirement system required its member employees to contribute a certain percentage of their compensation to assist in the financing of the system. Thus, a portion of the Plaintiff's salary was automatically subtracted from his paycheck to support this pension plan.

The Plaintiff retired from the Water & Power Authority on March 31, 1998, causing his retirement annuity to vest the following day. Upon his retirement, the Plaintiff had completed thirty and three-[89]*89fourths (30%) years of service as a government employee. According to a July 1, 1998 GERS document, an initial lump sum retirement payment of $1,892.99 was to be paid the Plaintiff. This payment, which represented benefits from April of 1998 through June 15, 1998, was to have been for $8,586.28. However, not all of the Plaintiff's years of employed service with the government were credited. Therefore, in order to receive credit for this service time, the Plaintiff contributed $6,393.29 to the retirement system. Along with this contribution, an additional $300.00 was subtracted from the initial payment to repay a prior personal loan. Finally, the GERS document stated that the Plaintiff would receive regular semi-monthly checks in the amount of $1,617.66, less deductions for personal loans, health insurance and taxes.

II. DISCUSSION

In the prior opinion in this matter, the Court expressly reserved the issues of alimony and the equitable distribution of the Plaintiff's pension for a future hearing. It had been reasoned that a determination for each of these issues had to await the actual distribution of pension benefits to the employee spouse. With the retirement of the Plaintiff and the disbursement of these proceeds having begun, the Court shall now conclude the remaining issues.

This Court finds that it possesses jurisdiction to entertain both of these matters pursuant to 16 V.I.C. § 109.3 The issue concerning the pension plan shall be addressed first, as there appears to still exist some debate as to whether this form of property actually constitutes marital property. In affirming that this property is indeed marital, the Court shall provide a formula to calculate the distri[90]*90button of the pension amongst the spouses. Lastly, the Court will weigh the overall circumstances of each party in determining whether to award permanent alimony to the Defendant.

A. Pension Plan

As stated earlier, Plaintiff is a retiree of the Water & Power Authority. As such, he is entitled to receive retirement benefits in the form of semi-monthly installments from GERS for the remainder of his life. V.I. Code Ann. tit. 3, § 723 (1995).4 The type of retirement plan the government provides its employees is a "defined benefit plan." In this type of plan, the benefits to be disbursed are determined without reference to contributions and are instead based on factors such as years of service and compensation received. Barlow v. Barlow, 447 S.E.2d 464 (N.C.App. 1994); See V.I. Code Ann. tit. 3, §§ 702(o) and 706 (1995).

1. Marital Property

The Court has previously held in this matter that a pension plan is marital property to the extent it was earned during the marriage. Regardless of this holding however, the Plaintiff treats this current proceeding as yet another opportunity to convince the Court to the contrary. He apparently assumes that by reserving the division of the pension plan for a future date, the Court's decision as to the status of this plan necessarily remained open for future argument. This assumption however, is incorrect.

In ascertaining whether the Court had unequivocally ruled on the pension plan's status, it is imperative that the language utilized in the first Fuentes opinion be revisited. A review of the prior opinion reveals this aspect of the pension issue to have been extensively discussed by the Court. After thoroughly examining how other jurisdictions treated retirement benefits in divorce matters, the Court held that:

[91]*91[ d]rawing upon the tremendous statutory and case law of other jurisdictions holding pension funds as marital property, we believe, in the Virgin Islands, that a pension fund is also marital personal property, subject to claim by the other spouse upon divorce. Having answered the question of whether a pension plan is marital property, to the extent earned during marriage, we now must determine to what percentage or share of the benefits defendant is entitled.

Fuentes,

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Cite This Page — Counsel Stack

Bluebook (online)
41 V.I. 86, 1999 WL 632829, 1999 V.I. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuentes-v-fuentes-virginislands-1999.