Withers v. Withers

661 So. 2d 529, 1995 WL 567045
CourtLouisiana Court of Appeal
DecidedSeptember 27, 1995
Docket27,348-CA
StatusPublished
Cited by5 cases

This text of 661 So. 2d 529 (Withers v. Withers) 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
Withers v. Withers, 661 So. 2d 529, 1995 WL 567045 (La. Ct. App. 1995).

Opinion

661 So.2d 529 (1995)

Judy Patrick WITHERS, Plaintiff-Appellee,
v.
Gerald Bruce WITHERS, Defendant-Appellant.

No. 27,348-CA.

Court of Appeal of Louisiana, Second Circuit.

September 27, 1995.

*530 Robert S. Tew, Monroe, for appellant.

Rankin, Yeldell, Herring & Katz by Stephen J. Katz and Richard A. Bailly, Bastrop, for appellee.

Before MARVIN and WILLIAMS, JJ., and PRICE, J. Pro Tem.

MARVIN, Chief Judge.

In this action between divorced litigants, Gerald Withers appeals a judgment denying his demands to modify a 1992 Qualified Domestic Relations Order (QDRO) which calculated his ex-wife's interest in his retirement plan with his employer, International Paper Company, according to the formula set forth in Sims v. Sims, 358 So.2d 919 (La.1978).

The community property regime of the litigants endured for almost 19 years, 1970-1989. Withers worked for IP for about 14 years before the marriage, 1956-1970, and continued to work for IP through the trial in 1994, at which time he was 56 years old and had no intention of retiring in the immediate future. His credited service years before and after the marriage will eventually total more than his credited service years during the community.

Withers contends that the 1992 QDRO is ambiguous with respect to the classification of his post-divorce contributions to the retirement plan and that his ex-wife should not be allowed to share in any increase in his retirement benefits attributable to the pay raises he received after the divorce, citing Hare v. Hodgins, 586 So.2d 118 (La.1991).

Hare is correctly cited as authority for modifying the Sims formula in the employee spouse's favor when that spouse proves that his or her income, and correspondingly the amount of the eventual retirement benefit, increased substantially after the divorce, due to personal and extraordinary effort or achievement, such as when the employee receives pay raises based on individual merit. Hare explicitly provides, however, and the trial court here found, that modification of *531 the Sims formula is not warranted when the post-divorce raises are merely normal or ordinary raises based on nonpersonal factors such as longevity or inflation. The record supports that finding by the trial court. Withers did not prove his post-divorce pay raises were the result of his meritorious individual effort or achievement.

We affirm. We find Withers' appeal is not frivolous and deny appellee's demand for damages therefor.

DISCUSSION

In the 1989 judgment of separation, and in the 1992 QDRO obtained by Judy Withers pursuant to federal law, 26 U.S.C. § 414 (Internal Revenue Code) and 29 U.S.C. § 1056 (ERISA), her share of the community interest in the IP retirement plan was calculated based on the formula of Sims v. Sims, supra. This formula directs that the community interest in an unmatured retirement plan be expressed by a fraction, the numerator of which represents the number of years of creditable service that accrued during the existence of the community (here, 18 years, 9 months, 26 days), and the denominator of which represents the yet-undetermined total years of creditable service. Sims directs that this fraction representing the community interest in the pension be multiplied by one-half to determine the nonemployee spouse's share of the retirement benefits. The employee spouse also receives one-half of the community fraction, as well as the full amount of the fraction representing the pre-and post-marriage years of service.

The 1989 separation judgment and the 1992 QDRO recognized Judy Withers' entitlement to a share of "each retirement check" according to the Sims formula, to be paid directly to her "at such time as any funds are paid Gerald Bruce Withers[.]"

The QDRO, but not the separation judgment, states that "all contributions" to the retirement plan made after April 5, 1989, the date the community regime ended, "[are] the separate property of [Gerald Withers] and [are] not subject to this Order."

In his petition to amend the 1992 QDRO, Withers complained the order was ambiguous and inconsistent in that it provided, in Paragraph 2, that his contributions to the plan after termination of the community would be deemed his separate property, while including his post-community years of service in the denominator of the Sims fraction used in Paragraph 3 to calculate the community interest in the plan. He asserted that the QDRO should be modified "to reflect and account for [his] pre-marital and post-divorce contributions to his pension plan."

Mrs. Withers did not testify at trial. The parties stipulated that when Mrs. Withers sought the QDRO, she had no intention to modify the earlier agreement of the parties contained in the separation judgment to divide the retirement plan according to the Sims formula. As indicated, this formula calculates the community interest in the plan, or the "community fraction," by comparing Mr. Withers' years of service during the marriage (numerator) with his total years of service, including those accruing before and after termination of the community (denominator).

Mr. Withers has been represented by three different lawyers throughout these proceedings. The parties stipulated that his first lawyer, who represented him when the judgment of separation was obtained, "believed that the Sims case [gave] the appropriate formula to use to divide the [IP] retirement plan [, and that the] retirement rights earned ... after the community terminated on April 5, 1989, would be classified as Mr. Withers' separate property." (Our brackets.)

At trial, Withers testified he repeatedly asked his first lawyer "where was the end" of Mrs. Withers' interest in the retirement plan before the judgment of separation was obtained in 1989. Withers said his attorney told him, "her part ends ... [as of] April 5, 1989, and the rest of it is [yours]."

As mentioned earlier, the judgment of separation merely applies the Sims formula to the IP retirement plan. The 1992 QDRO uses the identical formula for dividing the plan, while adding, for the first time, the statement that "all contributions [after April 5, 1989, are] the separate property of [Mr. *532 Withers] and [are] not subject to this Order." (Our brackets.)

Withers said that when he was served with Mrs. Withers' motion to obtain the QDRO in 1992, he acted on the advice of his second lawyer and did not appear to contest the order because he thought it incorporated his earlier understanding of how the retirement pay was to be divided.

In the present action to amend the QDRO, Mr. Withers complains that the Sims formula, which takes into account his total years of service with IP to calculate the community's fractional interest in the plan, is contrary to the statement elsewhere in the order that all contributions after termination of the community are his separate property.

The trial court correctly found no inconsistency between Sims and the QDRO, noting that the Sims formula expressly recognizes that the portion of a retirement plan attributable to the years of service worked before or after the marriage is the employee spouse's separate property.

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661 So. 2d 529, 1995 WL 567045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/withers-v-withers-lactapp-1995.