Walker v. Walker

203 Cal. App. 4th 137, 137 Cal. Rptr. 3d 611
CourtCalifornia Court of Appeal
DecidedJanuary 10, 2012
DocketNo. H036621
StatusPublished
Cited by26 cases

This text of 203 Cal. App. 4th 137 (Walker v. Walker) 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
Walker v. Walker, 203 Cal. App. 4th 137, 137 Cal. Rptr. 3d 611 (Cal. Ct. App. 2012).

Opinion

Opinion

MIHARA, Acting P. J.

Appellant Ralph D. Walker (Ralph) appeals from the family court’s 2010 orders (1) denying his motion to set aside under Family Code section 2122 the court’s 2009 orders awarding to respondent Elena M. Walker (Elena), his former spouse, a community property interest in his California State Teachers’ Retirement System (CalSTRS) disability allowance, (2) denying his motion for an employment efforts order against Elena, and (3) denying his motion for release to him of $5,000 from a trust account so that he would be able to hire an attorney to challenge the court’s order concerning his visitation with the couple’s children.

Ralph’s challenge to the family court’s denial of his motion to set aside the 2009 orders has merit. Elena received her full community property share of Ralph’s CalSTRS retirement benefits, and, as a matter of law, she had no community property interest in his postseparation disability allowance. We reverse the family court’s denial of Ralph’s motion to set aside the 2009 orders with respect to Ralph’s disability allowance. We decline to address his other contentions because they may be affected by our reversal of the court’s denial of his motion to set aside the 2009 orders.

I. Background

Ralph and Elena married in 1993 and have two minor children. They separated in January 2008, and, in March 2008, Elena filed a petition for legal separation. Ralph was 47 years old at the time of their separation. He had worked as a public school teacher until January 2008, when he left his employment due to a disability. Ralph has been a member of CalSTRS since 1986, and he had just under 20 years of CalSTRS service credit when he left his employment. Elena sought and obtained a domestic violence restraining order and a court order restricting Ralph to supervised visitation with the couple’s children. In June 2008, Ralph was ordered to pay $1,191 per month in child support and $601 per month in temporary spousal support. In November 2008, the court ordered that therapeutic visitation be substituted for the previously ordered supervised visitation. In January 2009, Elena joined CalSTRS as a party to this action. CalSTRS thereafter notified the [142]*142parties that “a legal hold” had been placed on Ralph’s CalSTRS account until this matter was resolved.

Proceeds from the sale of the couple’s home were placed in a trust account. In June 2009, the court ordered that $4,000 of Ralph’s share of the trust account be distributed to Ralph and that additional funds from Ralph’s share of the trust account be released to pay for the elder child’s “education related activities” and to pay Elena “all past due child and spousal support arrears through and including March 11, 2009.” At the same time, the court modified child support to $1,000 per month and temporarily suspended Ralph’s obligation to pay spousal support to Elena.

Ralph had applied for a CalSTRS disability allowance after the couple separated, and CalSTRS granted his application retroactive to December 2008. However, because his CalSTRS account remained on hold, he did not receive any disability allowance payments. On June 26, 2009, CalSTRS sent a letter to Elena’s attorney regarding Ralph’s CalSTRS benefits. This letter set forth calculations based on application of “the time rule formula” to determine the share of a “former spouse” in Ralph’s disability allowance. CalSTRS’s calculations indicated that the “former spouse[’s]” share would be 36.22 percent of the monthly disability allowance, which would amount to $1,838 per month. CalSTRS also stated: “[T]he segregation method of division . . . may be used to divide the community interest at this time. Once the member begins receiving a benefit, the segregation method will no longer be an acceptable method of division. The member’s segregation estimates do not reflect the member’s disability allowance, nor will the member’s disability benefit be impacted. However, should the member later apply for Service Retirement (SR), the amount of service credit used to calculate the SR benefit will be reduced; and therefore, the Disability estimates enclosed that show the DA to SR conversion will also be affected.” Elena’s segregated nonmember spouse CalSTRS account, which would contain her community property share of Ralph’s service credits, contributions, and interest, would not be used to fund any part of Ralph’s disability allowance.

In August 2009, the court entered a “STIPULATION AND ORDER” under which the parties agreed to “enter into a Domestic Relations Order (DRO) regarding Respondent’s right to receive disability benefits from CalSTRS. Said stipulation will provide that Petitioner will receive her one-half (1/2) share of the community property interest in Respondent’s CalSTRS disability benefits as calculated by CalSTRS and said payments will be sent directly to Petitioner, the remainder shall be paid directly to Respondent. The parties agree to retain Catherine Wiehe, Esq., to prepare said DRO and to equally [143]*143pay her fees and costs from their share of the sums held in the attorney-client trust account.” The order also provided for the release of $8,000 from the trust account to Ralph in exchange for his agreement that “the first $13,000” of “the lump sum retroactive disability benefits payable to him from CalSTRS” would be paid to Elena. Elena was to transfer $8,000 of the $13,000 back into the trust account and would retain the remaining $5,000 for past and future child support. “The remaining portion of said retroactive disability benefits payable in lump sum by CalSTRS shall be distributed to Petitioner pursuant to her one-half community property interest as calculated by CalSTRS, and the remainder to Respondent.” “Thereafter, the monthly, current, ongoing disability benefits shall be paid to Petitioner directly, for her one-half community property interest in said benefits in the amount as calculated by CalSTRS, and the remainder of said benefits shall be paid directly to Respondent.” “The parties also agree to enter into another Domestic Relations Order (DRO) to divide Respondent’s, Ralph Walker’s CalSTRS pension benefits to provide Petitioner with her one-half (1/2) share of the community property interest in Respondent’s CalSTRS pension as calculated by CalSTRS. The parties agree to retain Catherine Wiehe, Esq. to prepare said DRO . . . .”

Wiehe subsequently obtained additional information from CalSTRS. CalSTRS stated that Ralph did not have a “ ‘disability’ account”; “[a] Disability benefit is merely a benefit as a result of contributing to the Defined Benefit account as a full time member of CalSTRS.” CalSTRS advised: “While it is not typical that we not only segregate the community interest and [also] pay a former spouse a portion of the member’s remaining benefit(s), we do understand that this may be a means to obtain other monies owed for whatever reason.”

Wiehe prepared a domestic relations order (DRO), and the court issued the DRO as a “STIPULATION AND ORDER” on September 3, 2009. Both Ralph and Elena stipulated in writing to this DRO. The DRO provided that it “shall be controlling regarding the definition and payment of [Elena’s] interest in [Ralph’s] CalSTRS Defined Benefit Account, Defined Benefit Supplemental Account and Cash Balance Account through the CalSTRS.” CalSTRS was ordered to use the “ ‘Segregation Method’ ” to divide the community portion of these accounts into individual accounts for Elena and Ralph. In addition, the DRO provided that Elena “shall receive 36.22%” of any “disability benefits” that Ralph was “awarded” by CalSTRS.

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Cite This Page — Counsel Stack

Bluebook (online)
203 Cal. App. 4th 137, 137 Cal. Rptr. 3d 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walker-v-walker-calctapp-2012.