Marybeth Ann Witkowski-Schlegel v. Duke Jon Schlegel

Court of Appeals of Wisconsin·Decided August 27, 2026·No. 2025AP002208·Unpublished

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports.

August 27, 2026

A party may file with the Supreme Court a Samuel A. Christensen petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2025AP2208 Cir. Ct. No. 2023FA1091

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT IV

IN RE THE MARRIAGE OF:

MARYBETH ANN WITKOWSKI-SCHLEGEL,

PETITIONER-APPELLANT,

V.

DUKE JON SCHLEGEL,

RESPONDENT-RESPONDENT.

APPEAL from an order of the circuit court for Dane County:

STEPHEN E. EHLKE, Judge. Affirmed in part, reversed in part and cause remanded for further proceedings.

Before Graham, P.J., Kloppenburg, and Nashold, JJ.

Per curiam opinions may not be cited in any court of this state as precedent

or authority, except for the limited purposes specified in WIS. STAT. RULE 809.23(3).

¶1 PER CURIAM. As part of this divorce proceeding between Marybeth Witkowski-Schlegel and Duke Schlegel, the circuit court ordered that Marybeth would receive a percentage of two of Duke’s retirement accounts.1 After the court entered the judgment of divorce, the parties disputed whether the court intended that Marybeth’s award would include “gains and losses” between the date of the divorce judgment and the date that the funds were transferred into a segregated account for Marybeth. They also disputed whether Marybeth’s percentage of one of the accounts should be calculated based on the account’s gross or net value as of the valuation date. In oral rulings after the judgment of divorce, the court determined that Marybeth’s award was to be based on the balance of Duke’s retirement accounts as of the date of the divorce judgment, and was not to include post-judgment gains and losses. The court also determined that Marybeth’s percentage should be calculated based on the net value of the disputed account, and it rejected Marybeth’s argument that gross value needed to be used to account for tax consequences. The court memorialized these rulings in a written order.

¶2 We conclude that the circuit court did not erroneously exercise its discretion when it declined to award Marybeth gains and losses after the date of the divorce judgment. However, we also conclude that there’s nothing in the record that supports the court’s stated rationale with respect to the tax consequences, and therefore, the court’s decision on this issue does not amount to a proper exercise of discretion. Accordingly, we affirm in part, reverse in part, and remand for additional proceedings on this issue.

1 We refer to the parties by first name for clarity because their surnames are similar.

BACKGROUND

¶3 Marybeth and Duke were married in 2012. This was a second marriage for both spouses.

¶4 At the time of their divorce, Marybeth and Duke each owned Roth and traditional (non-Roth) individual retirement accounts (IRAs). Duke’s accounts were worth substantially more than Marybeth’s and, at their divorce trial, one of the issues was how the accounts held by both parties would be divided. The parties agreed that the total value of the retirement accounts should be divided more or less equally between the two spouses. The sole disagreement on this topic was whether a portion in net retirement assets that Duke accumulated before the marriage should be carved out from this otherwise equal division of retirement assets.

¶5 In the end, the parties agreed that Marybeth would retain the full value of her accounts and that two of Duke’s accounts would be divided, but they disagreed on the percentage of Duke’s accounts that Marybeth should receive to accomplish a more-or-less equal division of retirement assets. The parties presented competing property division worksheets, both of which were prepared by an accounting firm the parties jointly hired. As pertinent here, both worksheets identified the gross (pre-tax) and net (post-tax) values of each account as of the day on which the account was valued. The difference between the worksheets was that Duke’s worksheet, referred to as Exhibit 16, excluded certain retirement assets from an otherwise equal division to account for Duke’s pre-marriage contributions.

¶6 With respect to the two accounts that would be divided, Exhibit 16 proposed that Marybeth would receive 27.86 percent of those accounts. It

identified $89,984 as the net value of Marybeth’s share of those accounts as of December 31, 2023 (the date those accounts were valued). Excluding the pre- marriage contributions that Duke would retain, this division would result in both parties receiving approximately $245,000 in net retirement benefits.

¶7 In an oral ruling at the conclusion of the divorce trial, the circuit court adopted Duke’s proposal as “set forth in Exhibit 16.” Although Exhibit 16 reflected Marybeth’s share of the divided accounts as both a percentage and a fixed-dollar amount, the court’s remarks suggest that it intended the award to be percentage-based. Specifically, the court stated that it was adopting Exhibit 16 “for the division of the accounts and whatever QDRO needs to be submitted that would accomplish that with a percentage in it.”2 The court clarified that it did not know what the precise dollar amount of Marybeth’s award would be and that “there might be a $10,000 swing or something … one way or another,” but that the dollar amount was “not going to be a lot different” from what was stated in Exhibit 16.

¶8 The circuit court entered the judgment of divorce shortly thereafter.

In contrast with the court’s oral ruling, the written judgment, which had been drafted by Marybeth’s counsel and not objected to by Duke’s counsel, did not express Marybeth’s award as a percentage. Instead, the judgment provided that Marybeth would be awarded “$89,984.00” “as established in Exhibit 16.”

2 A Qualified Domestic Relations Order, or “QDRO,” is used to facilitate the division of funds held in a qualified private retirement plan, and to require the plan’s administrator to designate account funds for someone other than the original account holder. Such a recipient is referred to as an “alternate payee” and, as in this case, may include the original account holder’s former spouse. See 26 U.S.C. § 414(p)(1)(A); see also Lindsey v. Lindsey, 140 Wis. 2d 684, 689, 412 N.W.2d 132 (Ct. App. 1987).

¶9 The discrepancy between the oral ruling and written judgment came to a head after Marybeth retained substitute counsel and the parties attempted to agree on the terms of the draft QDRO that would be submitted for the circuit court’s signature. The parties could not agree on two related issues: whether the transfer was to be based on the fixed-dollar amount ($89,984) or the percentage (27.86) that was stated in Exhibit 16; and, provided that the award was to be percentage-based, the valuation date that should be used to determine Marybeth’s 27.86-percent share. At bottom, the dispute can be summarized as whether Marybeth’s share was fixed at $89,984, or whether her share would include any gains and losses on the accounts after they were valued for purposes of creating Exhibit 16.

¶10 Ultimately, Marybeth submitted an amended draft QDRO to the circuit court, and the court signed it after Duke failed to timely object. As pertinent here, that QDRO provided that Marybeth’s interest in Duke’s retirement accounts was “27.86%,” and that her share was to include gains and losses from the date the account was valued until the date that Marybeth’s award was segregated from Duke’s accounts.

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