Opinion ID: 1846792
Heading Depth: 3
Heading Rank: 3

Heading: Post-Marital Pension Benefits

Text: In calculating Raymond's monthly income, the district court included the portion of Raymond's monthly pension benefits earned after the parties dissolved their marriage. The court of appeals reversed, holding that Raymond's post-marital pension benefits do not qualify as future income until Raymond has received the full value of his marital property award and pre-marital benefits. Lee, 749 N.W.2d at 57. The court of appeals concluded that [w]hile neither party provided any evidence to establish the value of the pension benefits awarded at the time of the original decree, it is clear that for the foreseeable future, [Raymond's] monthly benefits payments will not equal that full value. Id. The court of appeals rested its conclusion on two prior court of appeals decisions, both of which warrant a brief examination here. In Kruschel v. Kruschel, the husband-obligor was awarded sole ownership of his pension plan when the parties dissolved their marriage. 419 N.W.2d 119, 120 (Minn.App.1988). The district court also awarded maintenance to the wife-obligee. Id. Five years after dissolution, the obligor retired and petitioned the court to lower his maintenance obligation. Id. at 120-21. He argued that continuing to pay maintenance would force him to disgorge a portion of his pension benefits, which were previously awarded him as marital property. Id. at 121. The court of appeals agreed, citing Minn.Stat. § 518.64, subd. 2 (2004) (current version at Minn.Stat. § 518A.39, subd. 2(f)) (stating that all divisions of real and personal property provided by section 518.58 shall be final). 419 N.W.2d at 121. The court of appeals remanded the case, and instructed the district court that maintenance may not be ordered to be paid from [the obligor]'s pension payments until he has received from the pension an amount equivalent to its value as determined in the original property distribution. Id. at 123. Similarly, in In re Marriage of Richards, the husband-obligor was awarded, as marital property, the entire value of his pension earned during marriage. 472 N.W.2d 162, 163 (Minn.App.1991). After the parties dissolved their marriage, the value of the obligor's pension benefits increased due to a change in the obligor's employer's benefits package. Id. The obligee argued that any pension payments received by the obligor in excess of the amount awarded to the obligor as property at divorce were future income, and therefore available for maintenance payments. Id. at 165. The court of appeals agreed with the obligee but, relying on Kruschel, 419 N.W.2d at 121, held that because the obligor was entitled to $50,556 in pension benefits under the original decree, until [the obligor] receives this amount, [the obligee] may not claim a share of increased pension income in excess of the original award. Richards, 472 N.W.2d at 165. In other words, the court of appeals adopted a no-apportionment rule, holding that all of the obligor's pension payments must be considered part of the obligor's property award until the sum of the payments exceeds the total award. In this case, the parties agree with the rule articulated in Kruschel that Minnesota Statutes § 518A.39, subd. 2(f), prohibits district courts from using pension payments as an income source for maintenance when the same pension benefits were previously awarded to the obligor as marital property. But the no-apportionment rule adopted by the court of appeals in Kruschel, as applied in this case, goes far beyond what is required to protect Raymond's interest in his property award. Of the $2,467.78 Raymond receives each month in pension payments, only $795.64 represents marital property previously awarded to him. As long as Raymond receives and keeps $795.64 in monthly pension payments, he receives exactly what the property award entitles him to receiveno more, no less. Any rule allocating the entirety of his monthly pension payment to Raymond as marital property does so artificially; the $2,467.78 pension payment Raymond receives each month represents the cumulative benefit earned by Raymond for work performed throughout his careerbefore, during, and after his marriage to Elaine. Therefore, we disagree with the court of appeals that the amount Raymond receives each month in excess of his property award must be considered marital property until he receives the full value of his property award. Rather, any monthly amount exceeding $795.64 represents income that is not part of the property award. We hold that a district court may include in its calculation of an obligor's ability to pay maintenance the portion of an obligor's monthly pension payment exceeding the amount the obligor is entitled to receive each month as marital property. Accord Olski v. Olski, 197 Wis.2d 237, 540 N.W.2d 412, 413 (1995) (holding that post-marital pension benefits represented an income stream available for maintenance). [11] The district court properly included in its calculation of Raymond's monthly income the difference between Raymond's total monthly pension payment and the portion of Raymond's monthly pension payment previously awarded to him as marital property.