Opinion ID: 1856527
Heading Depth: 1
Heading Rank: 2

Heading: Failure to include Husband's retirement benefits as divisible marital property

Text: Wife claims that the trial court erred in not considering Husband's retirement benefits in the division of marital assets. She argues that this was by far the largest asset and it was an abuse of discretion not to include the pensions. Husband argues that the pension plans were not divisible because they were not vested and had no present monetary value. We review the trial court's division of property under the abuse of discretion standard of review. Cole v. Cole, 384 N.W.2d 312 (S.D.1986); Goehry v. Goehry, 354 N.W.2d 192 (S.D.1984); Guindon v. Guindon, 256 N.W.2d 894 (S.D.1977). While this discretion is broad, it is not uncontrolled and must be soundly and substantially based on the evidence. Goehry, supra; Owen v. Owen, 351 N.W.2d 139 (S.D.1984). The omission of assets which should properly be included as marital property is an abuse of discretion. Guindon, supra . Although a portion of Husband's pension is military retirement pay, this does not prevent its inclusion as marital property. Hautala v. Hautala, 417 N.W.2d 879 (S.D.1988); Moller v. Moller, 356 N.W.2d 909 (S.D.1984). The state courts have jurisdiction over military retirement benefits and military pensions are not treated differently than other pensions in determining marital assets. Moller, supra . This court has consistently held that vested retirement accounts and pensions should be included as marital assets and divided between the parties. Caughron v. Caughron, 418 N.W.2d 791 (S.D.1988); Hautala, supra ; Arens v. Arens, 400 N.W.2d 900 (S.D.1987); Stubbe v. Stubbe, 376 N.W.2d 807 (S.D.1985). One rationale for including a retirement plan as a divisible marital asset is that it represents consideration in lieu of a higher present salary. Caughron, supra ; Stubbe, supra . The fact that Husband's pension is not payable until his retirement and is contingent upon his survival does not destroy the vested nature of his plan. As stated in Stubbe: [T]his pension plan is vested in the sense that it cannot be unilaterally terminated by his employer, though actual receipt of the benefits is contingent upon his survival and no benefits will accrue to the estate prior to retirement. Stubbe, supra at 809. Husband's pension may not be unilaterally terminated by his employer and is vested. Husband also argues that it was impossible for the trial court to include the pension as marital property since the present value of the account was not determinable at the time of trial. The fact of value of Husband's pension upon retirement was well established by the evidence at trial. There is no dispute as to the monthly payment amount of Husband's pension upon his retirement in two years, and its present value can be determined from this amount. Husband's pension plan is similar to that in Stubbe, where the court rejected the argument that the present value of the pension could not be determined. Finally, Husband argues that Stemper v. Stemper, 403 N.W.2d 405 (S.D.1987), modified on rehearing, 415 N.W.2d 159 (S.D. 1987), does not permit the trial court to divide the pension plan and at the same time provide for alimony payments from the pension. Based on his reading of Stemper, he argues that the trial court did not abuse its discretion as it properly awarded Wife alimony out of the pension plan, rather than dividing it as a part of the marital property. The original Stemper case, which denied an alimony payment from the same pension plan which was previously divided as marital property, was modified on rehearing. This court has also severely limited the Stemper holding that the trial court may not consider retirement income in awarding alimony. Hautala, supra . Husband's argument is also defeated by the trial court's Conclusion of Law 6. which states In determining this alimony award the court has considered the defendant's civilian and military pensions and the court is not awarding the plaintiff any portion of such pensions. We remand the property division to the trial court to include the pension plans as part of the marital property. The exact value of Husband's pension plans is yet undetermined, but this does not preclude the court from equitably dividing the pensions in the property division. As stated in Hansen v. Hansen, 273 N.W.2d 749, 753 (S.D.1979): We remand the property division to the trial court for a determination of the present value of the right to receive the retirement account upon retirement. The present value should be included in the property valuation and, if necessary, an equitable division may include a cash settlement payable in installments with interest. The trial court should include the pensions as marital property, make a finding of present value, and make an equitable division based thereon. Such division may include installment payments in accord with Hansen or in the alternative, a determination of the percentage to which each would be entitled. We remand for this purpose and reserve judgment on the other issues until the trial court has divided the marital property in accordance with this opinion. [2] Wife submits a motion and affidavit for attorney fees and costs on appeal in the amount of $2,429.05. Based on a consideration of the appropriate factors, we award Wife $1,200 for attorney fees. Cole, supra . Reversed in part and remanded. WUEST, C.J., and MORGAN and MILLER, JJ., concur. HENDERSON, J., concurs in part and dissents in part.