Opinion ID: 1715069
Heading Depth: 1
Heading Rank: 3

Heading: appeal and modified decree

Text: In Kramer I, the Court of Appeals affirmed the award of what it characterized as traditional alimony, 1 Neb.App. at 642, 510 N.W.2d at 353, in the amount of $900 per month but found that the provision for termination only upon death or remarriage was unreasonable. It ordered a modification to provide that this alimony would terminate on June 1, 2005, if not previously terminated by the death of one of the parties or the wife's remarriage. Addressing what it characterized as the  Pyke alimony challenged by the wife's cross-appeal, the Court of Appeals found that the greatest accumulation of value during the marriage was the military pension. Id. at 646, 510 N.W.2d at 355. The court further reasoned that under the Uniformed Services Former Spouses' Protection Act, 10 U.S.C. § 1401 et seq. (1988 & Supp. II 1990) (USFSPA), and our holding in Taylor v. Taylor, 217 Neb. 409, 413, 348 N.W.2d 887, 889 (1984), nondisability military pensions need no longer be treated differently than nonmilitary pensions in the division of marital assets. In Kramer I, the Court of Appeals stated: In our view, the provision in the Nebraska statute, [Neb.Rev.Stat.] § 42-366 [(Reissue 1988) ], that pensions be treated as property subject to division, coupled with the USFSPA, means that as a general proposition, a military pension must be viewed primarily as property to be divided. Thus, although Pyke alimony can be used, it should not be used in a manner which deprives the receiving spouse of the benefits which would ordinarily inure from the division of property. Typically, when marital property is divided, each party has the benefit of receiving a fixed amount or value which potentially can appreciate. Additionally, each party's share is not subject to being later reduced or taken away entirely because of circumstances which occur in the life of the former spouse. 1 Neb.App. at 646-47, 510 N.W.2d at 355. The Court of Appeals noted that under the Pyke alimony award, the husband would receive the benefit of future increases in the retirement pension but the wife would not. The court held that a fixed percentage interest in the pension should be awarded to each party, stating: We believe that the intent of Nebraska law with respect to pensions is to treat them as marital property ... and the fact that a pension is a military pension should be a fact of little consequence. Pyke alimony, as awarded by the trial court in this case, accords military pensions substantially different treatment, with potentially great adverse consequences to Kathleen. We believe that in order to justify the abrogation of the typical benefits of property division (certainty of amount, the chance for future appreciation of one's share, and complete ownership) by utilizing Pyke alimony to divide a military pension, the record must establish a compelling need to do so. When there is no such showing, as is the case here, the ultimate test of reasonableness from Gleason v. Gleason, 218 Neb. 629, 357 N.W.2d 465 (1984), is frustrated, as is the holding of Taylor v. Taylor, 217 Neb. 409, 348 N.W.2d 887 (1984), that military and nonmilitary pensions are no longer to be treated differently when dividing marital assets. Furthermore, [Neb.Rev.Stat.] § 42-365 [(Reissue 1988) ] tells us that when a court is dividing marital assets, property division and alimony serve different purposes and are to be considered separately. The purpose of a property division is to distribute the marital assets equitably between the parties. For these reasons, we hold that the trial court abused its discretion in awarding Kathleen $750 per month in Pyke alimony in lieu of an outright interest in Kenneth's military pension, as Kathleen was deprived of a fair and equitable result with respect to the division of the military pension. Therefore, we reverse paragraph II, dealing with the military pension, of the decree of dissolution and remand this matter to the district court for Sarpy County with directions to award Kathleen 46 percent of Kenneth's military pension under § 1408, which award shall not be subject to modification. 1 Neb.App. at 647-48, 510 N.W.2d at 355-56. The court also ordered that the husband be ordered to maintain a Survivor Benefit Plan under § 1450(f)(4) naming the wife as beneficiary in order to provide security for her interest in the military pension. Neither party sought further review of the decision of the Court of Appeals. Following remand, on October 21, 1993, the district court entered an order of modification of divorce decree, which contained the following provision: That as of June 1, 1990 [the wife] is awarded 46% of [the husband's] military pension with the United States Air Force as provided by 10 U.S.C. § 1408 and which award shall not be subject to modification. [The husband] shall maintain his survivor benefit plan naming [the wife] as the beneficiary. [The husband] shall receive the remaining 54% of his military pension. At the time of the order of modification, the monthly pension benefit was approximately $1,820, and the value of the 46-percent interest awarded to the wife was approximately $837 per month.