Marriage of Johnson v. Johnson

627 N.W.2d 359, 2001 Minn. App. LEXIS 581, 2001 WL 568748
CourtCourt of Appeals of Minnesota
DecidedMay 29, 2001
DocketC0-00-1654
StatusPublished
Cited by5 cases

This text of 627 N.W.2d 359 (Marriage of Johnson v. Johnson) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriage of Johnson v. Johnson, 627 N.W.2d 359, 2001 Minn. App. LEXIS 581, 2001 WL 568748 (Mich. Ct. App. 2001).

Opinion

OPINION

*361 DORIS 0. HUSPENI, Judge *

On appeal from an order denying post-decree motions, appellant challenges the district court’s rulings (1) allowing respondent to voluntarily reduce appellant’s portion of respondent’s pension benefits and (2) denying appellant attorney fees and costs. Because the district court did not err in clarifying the amended decree by stating it did not limit respondent’s right to elect survivor annuity benefits and did not abuse its discretion by denying appellant’s request for attorney fees, we affirm.

FACTS

The 30-year marriage of appellant Audrey C. Johnson and respondent James Johnson was dissolved in 1982. Pursuant to the decree, marital assets were divided approximately equally. Respondent’s pension from the U.S. Department of Agriculture was recognized in the decree as a marital asset. While the then-current surrender value of $20,113.36 was awarded to respondent, no division was made of the $159,518 sum found by the court to be the then-present value of the pension. Appellant was awarded temporary maintenance of $500 per month beginning January 1983, with a periodic reduction in that amount over time. Maintenance payments were to cease on December 31,1992.

In December 1986, in response to a motion by appellant and after respondent’s retirement, the district court provided for the division of pension benefit payments between the parties. The resulting amended decree provided that appellant was entitled to receive one-half of 30/34ths of respondent’s pension benefit. 1 The amended decree was silent, however, on respondent’s right to elect survivor’s benefits in the event of his remarriage.

In June 1990, respondent married a second time and elected survivor benefits under his pension for his new wife. He funded the survivor benefits in large part with a lump-sum payment, and in part with the pension annuity. However, because of his election of benefits, both parties’ benefit payments were reduced from September 1992, when respondent filed for spousal benefits for his second wife, until August 1996, when he notified the Office of Personnel Management that his second wife had died. Thereafter, payments to both parties increased.

In February 1999, respondent married a third time. He again elected survivor benefits for his new wife. Due to changes in federal law, however, respondent was unable to fund even a portion of the election with a lump sum payment. The election was, therefore, funded entirely by the pension annuity, which again resulted in reduced payments to both parties.

In July 2000, the district court denied appellant’s requests that (1) she receive one-half of 30/34ths of the monthly pension benefit without reduction for respondent’s elections of survivor benefits for subsequent spouses; (2) she receive repayment of the lost amounts due to the election of survivor benefits; (3) respondent be required to fund by a lump-sum payment any survivor benefits he chose to elect; and (4) she be awarded attorney fees. The court reasoned that in the 1986 amended decree

the court did not intend to hinder the respondent’s right or ability to make elections in the administration of his pension. * * * [AJppellant is entitled to *362 one-half of 30/34ths of the annuity payment after the respondent has made the elections available to him in the administration of his pension, and after the taxes have been paid.

This appeal followed.

ISSUES

I. Did the trial court err by concluding that appellant shall receive one-half (½) of thirty/thirty-fourths (%) of respondent’s pension payment after elections have been made?

II. Did the trial court abuse its discretion in denying appellant’s request for attorney fees?

ANALYSIS

I.

A trial court is accorded broad discretion in regard to the division of property in dissolution actions. Rutten v. Rutten, 347 N.W.2d 47, 50 (Minn.1984). If the determination of the trial court is reasonable and finds an acceptable basis in fact and principle, the reviewing court will, and must, affirm. Bollenbach v. Bollenbach, 285 Minn. 418, 426, 175 N.W.2d 148, 154 (1970). If the trial court’s property distribution is against logic and the facts on record, this court will find an abuse of discretion, and must reverse. Rutten, 347 N.W.2d at 50.

Pension division is generally discretionary with the trial court. Faus v. Faus, 319 N.W.2d 408, 413 (Minn.1982). When dividing retirement benefits, the trial court usually uses one of two methods. DuBois v. DuBois, 335 N.W.2d 503, 505 (Minn.1983). The first, the “present cash value” method, treats the pension as an indivisible asset and awards it, including the right to all future pension benefits, to the employee spouse. In doing so, the value of the pension for property-division purposes is set at its “present value” as of the date on which it is valued. In this context, we stress that “present value” is a term of art with a specific meaning. A “ ‘[pjresent value’ discounts an award [to be received in the future] to that amount which, if presently received, could be invested in order to yield the future sum”; it is the amount “which a person would take now in return for giving up the right to receive an unknown number of monthly checks in the future.” Id. at 506 (alteration in original). Thus, if the “present cash value” method of dividing a pension is used, the pension is awarded to the employee spouse at its “present value” and the non-employee spouse is awarded non-pension property in an amount which, in light of the entire property distribution, is required to achieve the equitable property distribution mandated by Minn.Stat. § 518.58, subd. 1 (2000). Under the second method to divide a pension, the “reserved jurisdiction” method, the trial court divides the marital estate but reserves jurisdiction over the division of the pension until retirement and divides the actual monetary benefit at that time. DuBois, 335 N.W.2d at 505.

Here, neither party disputes that the trial court used the “reserved jurisdiction” method in dividing that portion of respondent’s pension benefits. The amended decree issued in 1986 allocated the pension benefit payments between the parties according to an appropriate formula. But the decree was silent on respondent’s right to elect survivor benefits for subsequent spouses.

Appellant argues that the July 2000 order of the district court was not merely a “clarification,” but, in fact, impermissibly altered a final division of property ordered by the court previously, thereby violating provisions of Minn.Stat. § 518.64, subd. 2(e) (2000). That section provides:

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Bluebook (online)
627 N.W.2d 359, 2001 Minn. App. LEXIS 581, 2001 WL 568748, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriage-of-johnson-v-johnson-minnctapp-2001.