Hartley v. Hartley

205 P.3d 342, 2009 Alas. LEXIS 38, 2009 WL 1039845
CourtAlaska Supreme Court
DecidedApril 17, 2009
DocketS-13002
StatusPublished
Cited by26 cases

This text of 205 P.3d 342 (Hartley v. Hartley) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartley v. Hartley, 205 P.3d 342, 2009 Alas. LEXIS 38, 2009 WL 1039845 (Ala. 2009).

Opinion

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

■ John and Tina Hartley’s pre-divorce property settlement agreement awarded Tina fifty-seven percent of the monthly benefit accrued in John’s Federal Employee Retirement System (FERS) defined benefit plan. The agreement did not specify whether Tina’s payments should be based on John’s highest three salary years during the marriage or upon his future retirement. Nor did it specify who should bear the cost of Tina’s FERS survivor benefit or how that benefit should be divided.

The superior court’s FERS qualified domestic relations order (QDRO) based Tina’s share on an average of John’s highest three salary years at retirement. John contends that it should instead be calculated using the average of his highest three salary years during the marriage. He also argues that the superior court should have held an evi-dentiary hearing to resolve the dispute, that he should not have to pay part of the cost of Tina’s FERS survivor benefit, and that it was error to award Tina one-hundred percent of that survivor benefit.

We affirm. The agreement did not expressly resolve these disputes, and the superior court did not abuse its discretion in resolving them. Nor did it err by failing to hold an evidentiary hearing.

II. FACTS AND PROCEEDINGS

John and Tina Hartley married in August 1985 and separated in March 2006. Tina sued for divorce in October 2006. In June 2007 John and Tina entered into and filed with the court a property settlement agreement that, among other things, divided the benefits from John’s FERS defined benefit plan and from his other three retirement *345 plans. 1 The agreement’s relevant paragraph concerning the FERS plan reads:

Tina Hartley shall be awarded 57.0% of the monthly benefit accrued as a result of John Hartley’s participation in the Federal Employees Retirement System (FERS) between August 3, 1985 and October 3, 2006, together with any gains or losses on that 57.0% interest that have accrued since October 3, 2006. John Hartley shall be awarded all other interest in the FERS retirement. Tina Hartley’s interest will be addressed through a “separate interest” QDRO or, if that is not permitted by the Plan, a “shared interest” QDRO with a survivor’s benefit.

In June 2007 the superior court held a settlement hearing at which John and Tina both testified that they understood the property settlement agreement, that it was fair and equitable, and that they entered into the agreement voluntarily. The superior court then orally found that “[the property] agreement represents a fair and equitable division of the partiesf] marital estate.”

On the same day, the court issued written findings of fact and conclusions of law in which it again found that the parties’ property agreement was fair and equitable and ruled that the “property division provisions shall be ordered as set forth in the parties’ Agreement ].” The court also then issued a divorce decree.

In November Tina filed proposed QDROs for each of John’s four retirement accounts. The proposed QDRO for John’s FERS account stated that it was awarding to Tina fifty-seven percent of the marital portion of John’s FERS retirement benefits, but did not specify whether her portion would be based on John’s average high-three salary years at the time of his future retirement or at the end of their marriage. The proposed QDRO also stated that it was awarding Tina a “pro rata share” of John’s survivor annuity and that John and Tina would equally share the cost of that benefit.

When the proposed FERS QDRO was filed in November 2007 John was fifty-one years old, and as of January 16, 2008 he was still employed by the federal government and had not yet retired.

John filed a partial “opposition motion” in response to Tina’s proposed FERS QDRO. 2 He argued that the proposed FERS QDRO did not reflect his understanding of the parties’ agreement and that the date for determining the high-three salary years needed to be clarified. He contended that Tina’s share should be based on John’s high-three salary years as of October 3, 2006, when Tina filed for divorce. He also argued that the property settlement agreement did not define who would pay the cost of the survivor benefit and that Tina should bear fifty-seven percent of that cost. Finally, he requested an evi-dentiary hearing on his partial opposition motion. Tina opposed John’s motion.

In January 2008 the superior court adopted Tina’s proposed FERS QDRO and implicitly denied John’s partial opposition motion. The FERS QDRO, in relevant part, states:

7. Amount of Former Spouse’s Benefit: This Order assigns to Former Spouse an amount equal to fifty-seven percent (57.0%) of the Marital Portion of the Employee’s Self-Only Monthly Annuity determined as of the Employee’s date of retirement. For purposes of calculating Former Spouse’s share of Employee’s benefit, the Marital Portion shall be determined by multiplying the Employee’s Self-Only Monthly Annuity by a fraction, the numerator of which is the total number of months of Creditable Service under the FERS earned by the Employee during the marriage (from August 3, 1985 to October 3, 2006), and the denominator of which is the total number of months of the Employee’s Creditable Service accrued under the *346 FERS (including military service credited to the FERS should the Employee opt out of receiving his military retainer pay) based on Mr. Hartley’s high-3 at the time of retirement. See generally Wainwright v. Wainwright, 888 P.2d 762 at 765 (Alaska 1995).

(Emphasis added.) The FERS order also contained the court’s hand-written notation that “oral argument was not necessary to resolve the disputed issues.”

John moved for reconsideration, arguing that the order did not reflect his understanding of the property settlement agreement; that the order violated state law by giving Tina an interest in John’s post-separation labor; that the court misapplied Wainwright v. Waimvright; 3 and that John should not be required to contribute to the cost of the survivor benefit. John’s reconsideration motion attached an expert’s letter discussing the FERS QDRO and the Wainwright case.

The superior court denied John’s reconsideration motion. The court held that it had permissibly based the distribution of John’s FERS pension on his high-three years at the time of retirement, that it had correctly applied Wainwright, and that its holding was also supported by Faulkner v. Goldfuss. 4 The court declined to reconsider John’s other arguments.

John appeals.

III. DISCUSSION

A. Standard of Review

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Bluebook (online)
205 P.3d 342, 2009 Alas. LEXIS 38, 2009 WL 1039845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartley-v-hartley-alaska-2009.