Opinion ID: 1595880
Heading Depth: 1
Heading Rank: 7

Heading: Survivor Benefit Plan (SBP).

Text: On appeal, Terry claims that the district court erred by requiring him to pay the SBP. We do not agree. This court has recognized that in dissolution actions, the marital estate includes only that portion of a pension which is during the marriage. See, Hoshor v. Hoshor, 254 Neb. 743, 580 N.W.2d 516 (1998); Shockley v. Shockley, 251 Neb. 896, 560 N.W.2d 777 (1997). See, also, Neb.Rev.Stat. § 42-366(8) (Reissue 1998). As stated above, Terry's monthly retirement pay as a result of his military pension was $1,893 after deducting certain payments from this amount. Terry paid $137.68 per month for the SBP. At trial, the parties stipulated that Robin was entitled to 19.7 percent of Terry's military pension. The district court awarded Robin $375 per month from Terry's Air Force pension which, in actuality, equals 19.8 percent of Terry's monthly retirement after deducting certain payments. Terry does not challenge this award, but he argues on appeal that the district court erred in ordering him to pay the SBP premium of $137.68 per month. This court has not addressed the issue of whether it is appropriate to order one spouse to pay an SBP premium which favors another spouse. In Kramer v. Kramer, 1 Neb.App. 641, 510 N.W.2d 351 (1993), however, the Nebraska Court of Appeals considered whether, in a dissolution action, the district court abused its discretion in not ordering a former spouse to pay for an SBP. The Court of Appeals recognized that federal law requires military pension benefits to terminate with the death of the soldier, absent the purchase of an SBP. In Kramer, the Court of Appeals noted that without the SBP payments, if a soldier died prematurely, his or her spouse would be deprived of the ownership of this marital asset. If the soldier purchased an SBP, however, benefits can continue to be paid to the beneficiary, including a former spouse. Id. at 649, 510 N.W.2d at 356. The Court of Appeals reasoned that requiring the purchase of an SBP gives the division of a nondisability military pension more of the attributes of a true property division. Id. On remand, the Court of Appeals ordered the soldier husband to purchase an SBP for his wife as part of his pension benefits. A similar approach has been followed by a number of other jurisdictions. See, e.g., In re Marriage of Payne, 897 P.2d 888, 889 (Colo.App.1995) (ordering husband to pay for wife's SBP gives wife right already enjoyed by husband, that is the right to receive her share of the marital property awarded to her); Haydu v. Haydu, 591 So.2d 655 (Fla.App.1991) (trial courts have discretion to order spouse to maintain annuity for former spouse under SBP); Smith v. Smith, 190 W.Va. 402, 438 S.E.2d 582 (1993) (ordering husband in dissolution action to purchase and pay for SBP for wife to avoid unfairness of wife's receiving nothing if husband predeceases her). In the instant case, the SBP is necessary to guarantee that Robin continues to receive an important marital asset if Terry, who is 15 years her senior, predeceases her. Terry testified that he voluntarily purchased the SBP for Robin while the parties were married, and it is undisputed that since Terry's retirement from the military, the SBP payments have been subtracted from Terry's pension checks. In dissolution actions, district courts have broad discretion in valuing pension rights and dividing such rights between the parties. See, Shockley v. Shockley, supra ; Rockwood v. Rockwood, 219 Neb. 21, 360 N.W.2d 497 (1985). The district court's order maintains the character of this marital asset, thereby guaranteeing that Robin will continue to be eligible to receive a marital asset awarded to her in the event Terry pre-deceases her. The district court did not abuse its discretion by requiring Terry to pay for the SBP.