Russell v. Russell

520 So. 2d 435, 1987 WL 2425
CourtLouisiana Court of Appeal
DecidedDecember 9, 1987
Docket87-53
StatusPublished
Cited by16 cases

This text of 520 So. 2d 435 (Russell v. Russell) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Russell v. Russell, 520 So. 2d 435, 1987 WL 2425 (La. Ct. App. 1987).

Opinion

520 So.2d 435 (1987)

Lillian Slay RUSSELL, Plaintiff-Appellant,
v.
Gerald L. RUSSELL, Defendant-Appellee.

No. 87-53.

Court of Appeal of Louisiana, Third Circuit.

December 9, 1987.

Broussard, Bolton & Halcomb, Roy S. Halcomb, Jr., Alexandria, for plaintiff-appellant.

Eugene P. Cicardo, Alexandria, for defendant-appellee.

Before DOMENGEAUX, GUIDRY and LABORDE, JJ.

DOMENGEAUX, Judge.

Plaintiff, Lillian Slay Russell filed suit against her former husband, defendant, Gerald L. Russell, seeking a community property interest in certain military disability retirement benefits being paid to defendant. From a final judgment holding *436 these benefits to be defendant's separate property, and in addition, reducing plaintiff's alimony amount, plaintiff has appealed.

Two issues are presented for our review.

(1) Whether the contested military benefits were retirement benefits, thus susceptible to community property division or whether they were disability benefits, thus defendant's separate property.

(2) Whether or not the trial court erred in determining that there was a change in circumstances sufficient to warrant a reduction in plaintiff's alimony.

FACTS

On January 31, 1955, defendant, Gerald Russell entered the U.S. Army. He married plaintiff, Lillian Slay Russell on October 5, 1958. On September 21, 1972, defendant retired from the Army after being credited with serving 19 years, 11 months and 5 days. Mr. Russell would have been eligible to retire after completing twenty years, but instead, he chose to retire under 10 U.S.C. § 1201 because he had been determined to be 30% permanently disabled. Payments entitled "military retirement disability benefits" commenced on January 1, 1977.

After nineteen years of marriage, plaintiff and defendant were divorced on June 1, 1978. For fourteen of these years defendant had been in the Army and had accrued time towards retirement benefits. A community property agreement signed by both parties after the divorce made no reference to the military disability retirement benefits.

In 1983, Mrs. Russell sued Mr. Russell for her community interest in these payments. Initially, she claimed that military disability retirement benefits are community property just like other retirement benefits and therefore, subject to community partition. Alternatively, she argued that even if military disability retirement benefits are not community property, the payments defendant is receiving are not, in fact, disability benefits but instead, are a combination of both disability and retirement benefits, the latter of which are community assets. Defendant contested plaintiff's claim by arguing that these payments were disability benefits and, by law, were his separate property.

Defendant moved for summary judgment which was granted. In ruling for the defendant, the trial court held that the benefits defendant was receiving were solely for disability and, by law, could not be subject to community property partition.

Earlier in these proceedings, we reviewed the correctness of the summary judgment granted by the trial court. See Russell v. Russell, 465 So.2d 181 (La.App. 3rd Cir.1985). In that opinion we discussed other Circuit Court decisions which involved military disability retirement benefits, including Inzinna v. Inzinna, 456 So. 2d 691 (La.App. 5th Cir.), writ denied, 461 So.2d 317 (La.1984). We concluded that "disability retirement pay, although nominally a disability pension, can be a community asset if and to the extent that some amount thereof reflects nondisability retirement credible service." at 465 So.2d 183. We then set aside the judgment and remanded the case for a further determination of exactly what type of pension defendant was receiving; specifically, whether or not it represented a calculable combination of both disability and nondisability benefits.

After a trial on the merits, the trial court again concluded that the payments were solely disability benefits and therefore, constituted defendant's separate property. The Court also ruled that there was a significant enough change in circumstances to warrant lowering plaintiff's alimony from $200.00 to $100.00 a month because the plaintiff was now gainfully employed. Plaintiff has appealed the correctness of both rulings by the trial court.

THE MILITARY PENSION BENEFITS

Plaintiff argues that the trial judge erred in holding that disability benefits, as a matter of law, are a spouse's separate property and therefore, cannot belong to the community. Alternatively, plaintiff argues that even if the Court was correct in holding *437 that disability benefits are, by law, separate property, in this case, defendant failed to prove that these payments were, in fact, disability benefits. Plaintiff argues that these benefits are actually a combination of both disability and retirement benefits, the latter of which are subject to community partition under Louisiana law.

Initially, under Louisiana law military retirement benefits acquired during the existence of the community were considered community property and were subject to partition. Swope v. Mitchell, 324 So.2d 461 (La.App. 3rd Cir.1975); Moon v. Moon, 345 So.2d 168 (La.App. 3rd Cir.); writ denied, 347 So.2d 250 (La.1977). Louisiana jurisprudence seldom considered the issue of whether or not disability retirement pensions would also be considered community property. However, in Succession of Scott, 231 La. 381, 91 So.2d 574 (1956), the Court classified a disability retirement pension as a community asset. It was therefore, subject to a claim by the surviving widow. Thus, under Louisiana law both disability and non-disability retirement benefits had been treated as community assets subject to partition.

In McCarty v. McCarty, 453 U.S. 210, 101 S.Ct. 2728, 69 L.Ed.2d 589 (1981), the United States Supreme Court held that federal law preempted the application of state law in the area of military retirement benefits. The Court further ruled that military retirement benefits were the separate property of the retiring spouse.

The following year Congress enacted the "Uniformed Services Former Spouses Protection Act", which legislatively overruled McCarty, supra. Subsequently codified in Title 10 of the United States Code, the key provision removing federal preemption in the area of military retirement benefits can be found in 10 U.S.C. § 1408(c)(1) which provides that:

"Subject to the limitations of this section, a court may treat disposable retired or retainer pay payable to a member for pay periods beginning after June 25, 1981 [the decision date of McCarty, supra], either as property solely of the member or as property of the member and his spouse in accordance with the law of the jurisdiction of such court."

Thus, military retirement benefits, termed "disposable retired or retainer pay" in 10 U.S.C. § 1408(c)(1) were again subject to the application of state community property laws.

However, the original definition of "disposable retired or retainer pay" in 10 U.S. C.

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Cite This Page — Counsel Stack

Bluebook (online)
520 So. 2d 435, 1987 WL 2425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/russell-v-russell-lactapp-1987.