Opinion ID: 1456707
Heading Depth: 3
Heading Rank: 2

Heading: Alternate Payee

Text: The Superior Court's Order fulfilled the first requirement for a valid Qualified Domestic Relations Orderthat the order relate to marital property rights. The second requirement is whether Norma qualifies as an Alternate Payee under 29 U.S.C. § 1056(d)(3)(K). ERISA defines the term Alternate Payee as follows: The term [A]lternate [P]ayee means any spouse, former spouse, child, or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant. 29 U.S.C. § 1056(d)(3)(K). Automotive Trust contends that Norma does not qualify as an Alternate Payee because she was not a spouse, former spouse, child, or other dependent of Phillip. Norma, on the other hand, posits that she is an Alternate Payee because she qualified as Phillip's dependent. In support of her argument, Norma cites to (1) her designation as Phillip's wife on the couple's joint tax returns; (2) her designation as wife and beneficiary on Phillip's life insurance application; and (3) her undisputed financial dependence on Phillip during their thirty-year long quasi-marital relationship. The U.S. District Court held that, because Norma's dependent status is undisputed for the [thirty]-year term of her quasi-marital relationship with Phillip, and that no facts in the record indicate otherwise, Norma was an Alternate Payee under the statute. We agree. To determine whether Norma qualifies as Phillip's dependent, we look to the Internal Revenue Code, I.R.C. § 152(d)(2)(H). Section 152(d)(2)(H) defines the term dependent as [a]n individual (other than ... the spouse ... of the taxpayer) who, for the taxable year of the taxpayer, has the same principal place of abode as the taxpayer and is a member of the taxpayer's household. [7] I.R.C. § 152(d)(2)(H). It is undisputed that, for more than thirty years, Norma and Phillip shared the same principal place of abode in Seattle, Washington. In fact, the Owens purchased the home together, lived there together, and even jointly used the proceeds from the sale of the home to pay off the mortgage and other debts. Phillip was the primary wage-earner while Norma devoted her time to caring for her husband's and children's needs and tending to the couple's home. As the couple's joint tax returns indicate, Norma was a member of Phillip's household; she is listed on the couple's tax returns as Phillip's wife. Because Norma qualifies as an other dependent under I.R.C. § 152(d)(2)(H), we find that she was properly designated as an Alternate Payee under 29 U.S.C. § 1056(d)(3)(K), thereby fulfilling the second requirement for a valid QDRO.