Judith Karen Beshears v. Donald Beshears

423 S.W.3d 493, 2014 WL 345651, 2014 Tex. App. LEXIS 1111
CourtCourt of Appeals of Texas
DecidedJanuary 30, 2014
Docket05-12-01576-CV
StatusPublished
Cited by20 cases

This text of 423 S.W.3d 493 (Judith Karen Beshears v. Donald Beshears) 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
Judith Karen Beshears v. Donald Beshears, 423 S.W.3d 493, 2014 WL 345651, 2014 Tex. App. LEXIS 1111 (Tex. Ct. App. 2014).

Opinion

OPINION

Opinion by Justice FILLMORE.

Donald Beshears (Donald) 1 filed a motion to vacate or, alternatively, modify a qualified domestic relations order (QDRO) signed by the trial court following his divorce from Judith Karen Beshears (Judith) on the ground the QDRO did not comport with the divorce decree. During trial, Judith orally requested the trial court remove a provision from the QDRO that required her benefit to be calculated as of November 8, 2001, the date the divorce proceedings were heard by the trial court. In three issues, Judith contends the trial court erred by denying her motion and by granting relief sought in Donald’s motion and that the evidence is factually insufficient to support several of the trial court’s findings of fact and conclusions of law. We affirm the trial court’s order.

Background

Judith and Donald were married on July 20, 1977. On June 12, 1978, Donald began working for Merck & Co., Inc. (Merck) and participated in a retirement plan offered by Merck. In October 1998, Judith filed for divorce. On November 8, 2001, the trial court heard evidence pertaining to the divorce. On February 5, 2002, the trial court signed a Final Decree of Divorce finding “the parties have reached an agreement as to a proposed division of the marital estate,” the agreement was a just and right division of the marital estate, *496 and the marital estate was divided pursuant to the agreement.

As to Donald’s retirement benefits, the divorce decree provided:

IT IS ORDERED AND DECREED that JUDITH BESHEARS is AWARDED, as her sole and separate property, a portion of DONALD BESHEARS’ retirement benefits in the Retirement Plan for the Salaried Employees of Merck & Co., Inc., arising out of DONALD BESHEARS’ employment with Merck & Co., Inc., that portion being 57.5% of all sums, whether matured or unma-tured, accrued or unaccrued, vested or otherwise, together with all increases thereof, the proceeds therefrom, and any other rights related to the Retirement Plan for the Salaried Employees of Merck & Co., Inc., and more particularly defined in a Qualified Domestic Relations Order signed by the Court on the day this Final Decree of Divorce is signed.
IT IS ORDERED AND DECREED and DONALD BESHEARS is AWARDED, as his sole and separate property, the remainder of DONALD BESH-EARS’ retirement benefits in the Retirement Plan for the Salaried Employees of Merck & Co., Inc., arising out of his employment with Merck & Co., Inc.

On February 5, 2002, the trial court also signed a QDRO pertaining to the Retirement Plan for the Salaried Employees of Merck & Co., Inc. (the 2002 QDRO). The 2002 QDRO identified Donald as the participant in the retirement plan and Judith as the alternate payee of the plan. The 2002 QDRO provided, in relevant part:

[Judith] is allocated and assigned 57.5% of [Donald’s] benefit accrued under the Plan as of November 8, 2001.
[Judith’s] benefits shall be payable over [Judith’s] lifetime.
[Judith] shall be treated as the surviving spouse of [Donald], notwithstanding [Donald’s] subsequent marriage, if any.

Neither Judith nor Donald appealed the divorce decree or the 2002 QDRO.

Donald continued to work for Merck following the divorce. When Donald approached retirement, he learned from Merck that, because Judith was named as his surviving spouse in the 2002 QDRO, he was required to choose an annuity option that provided for Judith to receive a benefit after his death. The cost of the surviv- or benefit reduced the monthly benefit Donald would otherwise receive. Donald also could not name his current spouse as his surviving spouse for purposes of receiving a benefit after his death.

On January 18, 2012, Donald filed a motion to vacate and void the 2002 QDRO or, in the alternative, modify the 2002 QDRO, on the ground it did not comport with the terms of the decree. Donald specifically complained that, pursuant to section 205 of the Employee Retirement Income Security Act of 1974, 29 U.S.C.A. §§ 1001-1461 (West 2008, 2009, & Supp. 2013) (ERISA), there are two types of survivor annuities, a Qualified Preretirement Survivor Annuity (QPSA) and a Qualified Joint and Survivor Annuity (QJSA). Donald asserted the award of a QJSA to Judith in the 2002 QDRO did not comport with the property division in the decree. 2

Judith filed a plea to the jurisdiction, asserting the 2002 QDRO was a final order, the trial court’s plenary power over the 2002 QDRO had expired, and the trial court lacked jurisdiction to modify the *497 2002 QDRO. Judith filed a motion to dismiss raising the same arguments.

After hearing argument from counsel, the trial court denied Judith’s plea to the jurisdiction. Judith’s counsel then orally requested the trial court modify the 2002 QDRO to remove the provision that required Judith’s portion of the retirement benefit to be calculated based on the value of the total benefit as of November 8, 2001 and to award her 57.5% of the total benefit at the time of Donald’s retirement. Judith’s counsel also requested that, to the extent the survivorship benefit was divisible, the 2002 QDRO be modified to award Judith 57.5% of the QJSA.

Donald called Philip Phillips, an attorney whose practice encompasses the preparation of QDROs, to testify as an expert witness on QDROs. Phillips testified he has prepared over 9,000 QDROs for other attorneys and, in addition, has prepared QDROs in his own cases.

According to Phillips, the Merck plan is a defined benefit plan and is governed by ERISA. The 2002 QDRO names Judith as Donald’s “surviving spouse.” The Merck retirement plan has two different types of survivor annuities. The QPSA applies if the participant in the plan dies prior to anyone beginning to receive a retirement benefit. The QPSA allows a preretirement qualifying spouse to receive her portion of the benefit and not be “cut off’ by the participant’s death. The QJSA operates post-retirement and governs entitlement to benefits in the circumstance where the participant dies after the parties start receiving benefits.

Phillips testified there are “separate interest” and “shared benefit” QDROs. In a separate interest QDRO, the alternate payee’s benefit is converted to her lifetime. This means the death of the participant has no effect on the alternate payee’s receipt of her benefit. The alternate payee continues to receive her benefit until her death. In a shared benefit QDRO, the participant and the alternate payee share the benefit. The alternate payee starts receiving her benefit when the participant retires and receives that benefit until the participant dies. In a shared benefit QDRO, the alternate payee will not receive a benefit after the participant’s death unless she has a QJSA.

The 2002 QDRO specifically states that Judith will receive a benefit for her lifetime and is a separate interest QDRO.

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Cite This Page — Counsel Stack

Bluebook (online)
423 S.W.3d 493, 2014 WL 345651, 2014 Tex. App. LEXIS 1111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/judith-karen-beshears-v-donald-beshears-texapp-2014.