Howard v. Howard
Decision Date | 31 March 2016 |
Docket Number | NO. 01–14–00761–CV,01–14–00761–CV |
Citation | 490 S.W.3d 179 |
Parties | Winnie Howard, Appellant v. Stephen Howard, Appellee |
Court | Texas Court of Appeals |
Ronique Bastine Robinson, Bastine and Associates, Stafford, TX, for Appellant.
Kim K. Ogg, R. Scott Poerschke, Chris Ainsworth, The OGG Law Firm, PLLC, Houston, TX, for Appellee.
Panel consists of Justices Keyes, Bland, and Massengale.
In this appeal from a qualified domestic relations order (QDRO), we determine the appropriate method for allocation of retirement benefits pursuant to the parties' agreed divorce decree. In particular, we determine whether a divorce decree that ordered that one spouse receive one-half of any vested retirement benefits that related to the months of employee service during the marriage was limited to one-half of the employee's payroll contributions to the plan. The trial court found the decree to be so limited and ordered that Stephen Howard pay Winnie Howard one-half of the employee payroll contributions that Stephen Howard made toward his employment-related retirement plan during the months of their marriage.
Winnie Howard challenges this interpretation of the parties' divorce decree, contending that the trial court erred in limiting her allocation to one-half of payroll contributions during the marriage instead of one-half of the vested retirement benefits relating to the months of Stephen's employment during the marriage. We agree, and hold that the divorce decree awarded to Winnie one-half of the vested benefits that accrued during the months of the marriage rather than one-half of the employee payroll contributions made during the months of the marriage. We therefore reverse and remand.
The Howards married on November 23, 1979 and were divorced on November 28, 1988; thus, they were married for approximately nine years. About six months after the couple married, Stephen began working for the Houston Police Department. He continued working for HPD after the divorce. The QDRO enforces the community property division within the Howards' 1988 divorce decree, which provided that Winnie Howard was entitled to “one-half of all sums related to any vested retirement or pension plan of Stephen Howard existing by reason of his employment during the marriage.” We set forth the divorce decree, the benefit plan, and the trial court's findings in connection with both.
The property division section of the Howards' 1988 divorce decree provides, in pertinent part:
Beginning with his date of employment, Stephen participated in the Houston Police Officer's Pension System (“HPOPS”). During the marriage, Stephen worked for HPD for eight and a half years and had made employee payroll contributions of $20,765 into HPOPS.
At the time of the Howards' divorce, the HPOPS benefits in existence included:
In the years after the Howards' 1988 divorce, HPOPS added two benefits:
An HPD employee who leaves employment before becoming vested in the HPOPS plans is entitled to a refund of the employee payroll contributions paid into the plan but is not entitled to any retirement benefits.
In June 2001, HPOPS amended its plan to allow officers who had accrued years of service while in other City of Houston employment to add that service time for purposes of benefit eligibility. Before his employment with HPD, Stephen had worked for the Houston Fire Department for two years and three months, beginning on February 25, 1978 and continuing until his employment with HPD; thus, he worked for HFD for about six months during the marriage and a year and nine months prior to the marriage. This option added the two years and three months of service credit that he had earned as a Houston firefighter to Stephen's years of HPD service for vesting purposes.
In 1998, based on his accumulated 20 years of service credit, Stephen was eligible to retire from the HPD. He elected not to retire and participated in the DROP program. His “DROP entry date” for purposes of accruing DROP benefits was December 12, 1998.
After hearing evidence in a bench trial, the trial court entered the QDRO interpreting the divorce decree and awarding benefits. The trial court found:
Based on these findings, the trial court ordered:
[Winnie] shall as of the date of this order have the right to be paid the 50% of 20,765 or TEN THOUSAND THREE HUNDRED EIGHTY–TWO DOLLARS AND FIFTY CENTS ($10,382.50) of [Stephen]'s retirement/pension benefit with HPOPS.
Winnie appeals the trial court's order, contending that the trial court erred in its interpretation of the divorce decree because the benefit of eight years and six months of credited pension service was not a refund of the employee contribution but instead was a pro-rata share of the retirement benefits accrued. Stephen responds that the trial court correctly awarded a lump sum return of one-half of the contributions that he made during the marriage, because he had not vested in the HPOPS retirement plan as of the date of the divorce.
The parties' dispute centers on the provision in the 1988 divorce decree granting “[o]ne half of any and all sums related to any vested profit sharing plan, retirement plan, pension plan, employee stock option plan, employee savings plan or accrued unpaid bonuses, or other benefit programs existing by reason of [Stephen]'s employment during the marriage. ” We must decide whether—as Stephen contends and the trial court found—the divorce decree awarded retirement benefits for plans that already had “vested” as of the date the Howards' divorce in 1988, or whether, as Winnie contends, it awarded Winnie an interest in vested retirement benefits that came due and payable to the beneficiary in the years after the marriage that “exist[ed] by reason of” Stephen's employment during the marriage.
I. Division of Retirement Benefits
We review a trial court's ruling on a post-divorce motion for enforcement or clarification for an abuse of discretion. DeGroot v. DeGroot, 369 S.W.3d 918, 921–22 (Tex.App.–Dallas 2012, no pet.) ; Gainous v. Gainous, 219 S.W.3d 97, 103 (Tex.App.–Houston [1st Dist.] 2006, pet. denied). A trial court abuses its discretion only if it reaches a decision so arbitrary and unreasonable that it amounts to a clear and prejudicial error of law or if it clearly fails to correctly analyze or apply the law. Intercont'l Terminals Co., LLC v. Vopak N. Am., Inc., 354 S.W.3d 887, 892 (Tex.App.–Houston [1st Dist.] 2011, no pet.) (citing In re Olshan Found. Repair Co., LLC, 328 S.W.3d 883, 888 (Tex.2010) ); see also Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241–42 (Tex.1985).
In this case, the parties have virtually no dispute concerning the circumstances of their divorce or the facts relating to Stephen's employment during and after their marriage; rather, they contest the meaning of the agreed divorce provision dividing Stephen's HPOPS retirement benefits. An agreed property division incorporated into a final divorce decree is treated as a contract and is controlled by the rules of construction applicable to ordinary contracts. Allen v. Allen, 717 S.W.2d 311, 313 (Tex.1986) ; Beshears v. Beshears, 423 S.W.3d 493, 500 (Tex.App.–Dallas 2014, no pet.) ; McCoy v. Rogers, 240 S.W.3d 267, 275–76 (Tex.App.–Houston [1st Dist.] 2007, pet. denied). Our primary concern in interpreting a contract is to ascertain the parties' intent. Italian Cowboy Partners, Ltd. v. Prudential Ins. Co. of Am., 341 S.W.3d 323,...
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