Opinion ID: 2258864
Heading Depth: 1
Heading Rank: 1

Heading: Unvested Pension Rights

Text: Donald argues the pension is not property subject to equitable distribution because it had not vested at the time of the divorce. When the parties divorced, Donald had served in the Air Force for about seventeen years. Donald contends that because he had to remain in the military an additional three years to receive the pension nothing existed to be set aside or divided at the time of the divorce. Donna argues that the definition of marital property is to be interpreted broadly under our statutes and that Donald's unvested pension is marital property subject to equitable distribution. We agree. Pursuant to section 722-A(2) marital property is defined, with certain exceptions not here applicable, as all property acquired by either spouse subsequent to marriage.... 19 M.R.S.A. § 722-A(2) (1981). We have stated `all personal property, tangible and intangible, in which a spouse acquires an interest is includable [as property to be divided by the court]. Choses in action, rights and other interests, the benefits of which may be receivable now or in the future are classifiable as intangible personal property.' Moulton v. Moulton, 485 A.2d 976, 978 (Me.1984) (alteration in original) (quoting Kruger v. Kruger, 73 N.J. 464, 375 A.2d 659, 661 (1977) and citing In re Marriage of Laster, 197 Mont. 470, 643 P.2d 597, 603 (1982) (nonmarital retirement programs includable, whether or not vested)). We have interpreted broadly the definition of marital property subject to the provisions of section 722-A. See Noyes v. Noyes, 662 A.2d 921, 924 (Me.1995) (increase in the value of husband's vested pension occurring during marriage); Moulton, 485 A.2d at 978 (husband's right to be compensated for electrical work done for his aunt); Lord v. Lord, 454 A.2d 830, 833 (Me. 1983) (good will of insurance agency operated jointly by the parties). Furthermore, the majority of other jurisdictions that have considered the issue have concluded that an unvested pension may be marital property subject to distribution. See Charles C. Marvel, Annotation, Pension or Retirement Benefits as Subject to Award or Division by Court in Settlement of Property Rights Between Spouses, 94 A.L.R.3d 176, § 13(c) (1979). In light of the expansive definition of property in section 722-A(2), and consistent with our prior holdings, an unvested military pension is a form of marital property. An unvested right to retirement benefits is a contractual right, subject to a contingency, and is an asset subject to equitable distribution in divorce proceedings.