Court Opinion

ID: 9545576
Source: CourtListenerOpinion
Date Created: 2023-08-07 17:15:48.211027+00
Date Added: 2024-06-11T15:15:08.554519
License: Public Domain

Mowbray, J.,
dissenting:
Respectfully, I dissent.
Robert Powers adequately made his record below and his contentions have merit. Respondent conceded during oral argument that New York law governs the characterization of Robert’s disability benefits. The character of marital property does not change because a husband and wife move to another jurisdiction. Restatement (Second) of Conflict of Laws § 259 (1971). The law of the domiciliary state at the time property is acquired controls its characterization as either separate or community property. See Choate v. Ransom, 74 Nev. 100, 323 P.2d 700 (1958). The domicile at the time retirement benefits vest determines whether *517they are divisible upon divorce. See Gilbert v. Gilbert, 442 So.2d 1231 (La. 1984) (determining that federal civil service disability retirement benefits which vested while in Georgia were subject to Georgia’s equitable distribution law). It is undisputed that Robert earned and was awarded the disability retirement benefits while he and Cecelia were domiciled in the State of New York. Therefore, New York law governs the divisibility of Robert’s disability benefits.
In New York, disability benefits dilfer from retirement benefits in that they are considered compensation for personal injuries and therefore separate property. West v. West, 475 N.Y.S.2d 493 (N.Y.App.Div. 1984). However, when a person has a choice between vested retirement benefits and disability benefits and chooses disability benefits, the disability benefits are characterized as retirement benefits to the extent that the person could have chosen the vested retirement benefits. See Musumeci v. Musumeci, 506 N.Y.S.2d 629 (N.Y.Sup.Ct. 1986). But, where retirement benefits are not vested and the party is entitled only to disability benefits, they are viewed as being awards for personal injury and as such, separate property. Mylette v. Mylette, 531 N.Y.S.2d 489, 491 (N.Y.Sup.Ct. 1988).
Robert’s retirement benefits had not vested and he had no choice other than to accept disability benefits. Thus New York law would treat the benefits as separate property. Therefore, I would reverse.