Issues with Offsetting a Pension Decision

Issues with Offsetting a Pension Decision

Ganues v. Ganues, 3rd Dist. Seneca No. 13-18-36, 2019-Ohio-1285 (Decided April 8, 2019).

Issue: Can Husband terminate spousal support for Wife, which he agreed to pay for life in lieu of splitting his military pension, after suffering a significant decrease in income and after the Wife has remarried?

Decision: The Third District Court of Appeals affirmed the trial court’s decision that Husband could not terminate his spousal support obligations. The Husband and Wife were married for almost 30 years. During that time, the Husband served in the military and, after 20 years of service, retired and received his benefits of approximately $20,000 per year. When the parties divorced, the Husband agreed to pay the Wife spousal support until one of them died in exchange for retaining 100% of his military retirement benefits. Six years after the divorce, and after the Husband had a significant decrease in his wages, Husband was over $18,000 in arrears on his spousal support. The Wife was remarried at the time, so Husband sought to have his spousal support obligations terminated. The trial court denied the Husband’s motion to terminate because the parties agreed Wife would receive spousal support for life in exchange for her interest in the military pension, which is a lifetime benefit. However, the Wife was merciful to the Husband and agreed to have his spousal support lowered to $10,000 per year—which represented her share of his military pension.

Observation: This case represents just one of the perils that can arise when trying to offset assets/support payments to avoid dividing a pension. At the time of divorce, the Husband clearly did not want to divide his military pension and believed it was a good idea to pay spousal support instead. However, as he learned the hard way, life circumstances and incomes can change. Instead of simply dividing the military pension, the Husband found himself in arrears and had to pay additional court costs/legal fees just to end up dividing the pension several years later.

How we can help: Our services go beyond just drafting QDROs, we act as advisors to our attorney clients. We can provide you with our expertise, gained over decades on concentrating solely on dividing retirement benefits, to help you formulate the best strategy for your clients. With the proper advice in the beginning of the case, we can help you draft the correct separation language and draft a correct QDRO that will secure the benefit your client gained through negotiations. We can help you with the burden of the technical; arduous; and to the unsuspecting novice, perilous issues of dividing retirement accounts so you can concentrate on custody, child support, and the other litany of immediate issues faced in a divorce.

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