In Re Marriage of Foster

180 Cal. App. 3d 1068, 227 Cal. Rptr. 446, 1986 Cal. App. LEXIS 1574
CourtCalifornia Court of Appeal
DecidedMay 9, 1986
DocketD001918
StatusPublished
Cited by3 cases

This text of 180 Cal. App. 3d 1068 (In Re Marriage of Foster) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Marriage of Foster, 180 Cal. App. 3d 1068, 227 Cal. Rptr. 446, 1986 Cal. App. LEXIS 1574 (Cal. Ct. App. 1986).

Opinion

Opinion

KREMER, P. J.

When Johnnie and Betty Foster’s marriage was dissolved in 1978, the trial court awarded Betty a 43 percent community interest in Johnnie’s military retirement benefits. Johnnie refused to pay Betty from his retainer pay and eventually voluntarily resigned from the Navy, thereby forfeiting his retirement benefits. In a later action challenging the original judgment’s enforcement, the trial court awarded Betty arrears and made Johnnie a constructive trustee for the amount Betty would have monthly received from the pension had Johnnie not resigned. We find the award of *1071 arrears proper. However, because Johnnie resigned, his pension never matured. Under the original judgment, Betty would have had no claim to immature benefits. Therefore, the trial court erred in making Johnnie a trustee of the same. We affirm in part and reverse in part.

Factual and Procedural Background

Johnnie enlisted in the United States Navy in October 1952 and married Betty approximately six months later. Johnnie actively served in the Navy until October 1976 when he transferred to the Fleet Reserve. At that time, he began receiving monthly retainer pay under 10 United States Code section 6330.

In April 1977 Johnnie and Betty separated and Johnnie thereafter petitioned to dissolve their marriage. In its order awarding the community property, the trial court provided: “Respondent is awarded her share of the Petitioner’s retirement fund, 4 of 258/299, of |>zc] 43% of the gross monthly amount to which Petitioner is entitled, and Petitioner is hereby ordered to make a Government allotment in Respondent’s favor with the proper departments so that her share of said retirement will be paid directly to her.”

Believing retainer pay was not part of his “retirement fund,” Johnnie did not immediately register a government allotment to Betty. Seeking to enforce the property division, Betty brought the first of a series of contempt actions. On threat of contempt, Johnnie instructed the Navy Finance Center to initiate an allotment to Betty “[ujpon my release from service in the Naval Fleet Reserve and [placement] on the retirement list . . . .” Under 10 United States Code section 6331, Johnnie could first be placed on the retired list and subsequently receive retired pay in October 1982, the point at which he would have actively and inactively served for 30 years. In apparent reliance on Johnnie’s instructions, payments were not made immediately and arrears accrued. In a later contempt proceeding, Johnnie was again ordered to initiate an allotment for immediate payments to Betty. He apparently did so, but later wrote another letter to cancel the payments.

In December 1980 Johnnie resigned from the Naval Fleet Reserve. By resigning, Johnnie forfeited his retainer pay and his vested right to receive retired pay upon reaching his 30th service anniversary. In his letter to the Secretary of the Navy, Johnnie stated he resigned “[d]ue to the State of California’s obsessive desire that I share a portion of my Naval Fleet Reserve retainer pay with my ex-spouse as community property, and their relentless pursuit to keep me incarcerated, ...” His discharge became final on November 19, 1981.

*1072 In 1982 and 1983 Betty brought writs of execution to recover arrears. In opposition, Johnnie filed an order to show cause to quash a previous earnings withholding order and underlying writ of execution and a request for an accounting. After a hearing, the trial court denied Johnnie’s request to quash the earnings withholding order and reaffirmed Betty’s 43 percent share in Johnnie’s gross retainer and retired pay. The court then determined Johnnie owed $12,639.14 for the period between the final dissolution judgment and his discharge and $13,606.06 plus 10 percent interest for the period from his discharge until the hearing. The trial court also imposed “a constructive trust on petitioner husband in the amount of 43% of his retirement fund ($523.31/month) to respondent wife as her community interest as found by and ordered by the trial court.” Johnnie appeals from this order.

Discussion

I

Relying on a Texas appellate decision, Johnnie contends his retainer pay is distinct from retired pay and is not an asset in which Betty can claim a community interest. Although the Texas Court of Civil Appeals in Sprott v. Sprott (1979) 576 S.W.2d 653, did indeed hold retainer pay was separate property, this is clearly not the law in California. In In re Marriage of Mercier (1975) 48 Cal.App.3d 775 [121 Cal.Rptr. 886], the Court of Appeal determined retainer pay under 10 United States Code section 6330 was community property and ordered its division under the same principles guiding the division on nondisability retirement pay. (Id., at pp. 783-784.) Moreover, the dissolution judgment in this case has long been final, and res judicata principles preclude Johnnie from relitigating the character of his retainer pay. (In re Marriage of Thomas (1984) 156 Cal.App.3d 631, 638 [203 Cal.Rptr. 58].) Johnnie cannot now attack collaterally that which he could have directly litigated in the original dissolution action. Thus, the trial court’s award of arrears based on Betty’s 43 percent community interest in Johnnie’s retainer pay was proper. For reasons which we explain in the section following, the award of arrears must be limited to those accrued between the judgment of dissolution and Johnnie’s discharge.

II

Johnnie next contends the trial court, in the circumstances of this case, improperly imposed a constructive trust on Johnnie’s forfeited retainer *1073 pay and immature pension benefits. We find merit in this contention. Betty unquestionably shared a community interest in Johnnie’s rights to retired and retainer pay earned during their marriage. (In re Marriage of Brown (1976) 15 Cal.3d 838, 851-852 [126 Cal.Rptr. 633, 544 P.2d 961, 94 A.L.R.3d 164]; In re Marriage of Fithian (1974) 10 Cal.3d 592, 604 [111 Cal.Rptr. 369, 517 P.2d 449], disapproved on other grounds in In re Marriage of Brown, supra, at p. 851, fn. 14.) The trial court recognized this in awarding Betty “43% of the gross monthly [retirement fund] to which [Johnnie] is entitled,. . . ” At the time of this judgment, Johnnie was already receiving retainer pay, and consequently the order effected an immediate transfer of a 43 percent share to Betty. In contrast, Johnnie’s right to retired pay did not mature, that is, become unconditionally payable, until Johnnie’s 30-year service anniversary. (10 U.S.C. § 6331.) Under the terms of the judgment, this benefit could not be immediately paid to Betty until that time. (In re Marriage of Gillmore (1981) 29 Cal.3d 418, 426 [174 Cal.Rptr. 493, 629 P.2d 1

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Marriage of Elfmont
891 P.2d 136 (California Supreme Court, 1995)
In Re the Marriage of Lawson
409 N.W.2d 181 (Supreme Court of Iowa, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
180 Cal. App. 3d 1068, 227 Cal. Rptr. 446, 1986 Cal. App. LEXIS 1574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-foster-calctapp-1986.