Keen v. Keen

• Decision Date: 04 May 1992
• Docket Number: Docket No. 120410
• Citation: 194 Mich.App. 72,486 N.W.2d 105
• Parties: Charles E. KEEN, Plaintiff-Appellee, v. Patricia E. KEEN, Defendant-Appellant. (After Second Remand)
• Court: Court of Appeal of Michigan — District of US

Page 105

486 N.W.2d 105

194 Mich.App. 72

Charles E. KEEN, Plaintiff-Appellee, v. Patricia E. KEEN, Defendant-Appellant. (After Second Remand)

Docket No. 120410.

Court of Appeals of Michigan.

Submitted March 11, 1992, at Lansing.

Decided May 4, 1992, at 9:15 a.m.

Released for Publication Aug. 3, 1992.

Barr, Anhut & Sacks, P.C. by William F. Anhut, Ypsilanti, for plaintiff-appellee.

Shirley J. Burgoyne, Ann Arbor, for defendant-appellant.

Before SHEPHERD, P.J., and SAWYER and CONNOR, JJ.

CONNOR, Judge.

Defendant appeals as of right from an amended judgment of divorce entered on August 9, 1989. We affirm in part and reverse in part.

This case has been before this Court on two previous occasions. The parties continue to dispute how to deal with plaintiff's military retirement pension. In Keen v. Keen, 145 Mich.App. 824, 378 N.W.2d 612 (1985), we held that the pension was a marital asset susceptible to division. In Keen v. Keen, 160 Mich.App. 314, 407 N.W.2d 643 (1987), we reversed the trial court's award of alimony as a means of dividing the pension, and we ordered the trial court to ascertain the value of the pension and determine the appropriate amount and method of division. 160 Mich.App. at 318, 407 N.W.2d 643.

On remand, the trial court determined the pension to be worth $218,767 and decided that distributing forty-five percent of the "net pension" to defendant would be equitable. The trial court also determined that weekly payments were an appropriate means of dividing and distributing the asset.

Defendant contends that the trial court did not follow the remand order precisely in determining how to value and divide the pension. We affirm the trial court's determination of value. However, we note that the trial court's use of the phrase "net pension" should be understood to mean "disposable retired pay" as defined by federal law. 10 U.S.C. 1408(a)(4). Only that portion of plaintiff's total retirement pay defined by statute as disposable retired pay is properly divisible. Mansell v. Mansell, 490 U.S. 581, 588-589, 109 S.Ct. 2023, 104 L.Ed.2d 675 (1989). This Court also finds that the trial court did not err in ordering periodic payments. This method of distribution accords with the federal statute and will make it possible for defendant to receive her money directly from the federal government, 10 U.S.C. 1408(d). ¹ Moreover, federal law prohibits defendant from having any right to any portion of plaintiff's retired pay after her death, and retired pay stops when plaintiff dies, 10 U.S.C. 1408(c)(2), (d)(4). Because the applicable law has changed from the time of this Court's second decision, the ruling by the trial court should not be viewed as inconsistent with this Court's order for remand. See Barcheski v. Bd. of Ed. of Grand Rapids Public Schools, 162 Mich.App. 388, 394, 412 N.W.2d 296 (1987).

Defendant also complains that the trial court erred in awarding her only forty-five percent of the disposable retired pay. This Court reviews dispositional rulings by a trial court de novo, but will not reverse the decision unless convinced that it would have reached a different result. Burkey v. Burkey (On Rehearing), 189 Mich.App. 72, 78-79, 471 N.W.2d 631 (1991). ² The trial court's findings of fact in reaching that decision are reviewed under the clearly erroneous standard. Beason v. Beason, 435 Mich. 791, 805, 460 N.W.2d 207 (1990); Burkey, supra. Distribution of marital assets should be fair and equitable in light of all the circumstances. Beckett v. Beckett, 186 Mich.App. 151, 152-153, 463 N.W.2d 211 (1990). The trial court had already granted the bulk of the other marital assets to defendant while distributing to plaintiff the marital debts. At most, defendant could receive only fifty percent of the pension. 10 U.S.C. 1408(e)(1). Considering the property division as a whole, we find no error in the trial court's decision. The property division was fair and equitable.

Defendant next argues that she should have been awarded interest on any arrearages. Considering the passage of time, we agree. Thomas v. Thomas (On Remand), 176 Mich.App. 90, 92, 439 N.W.2d 270 (1989). However, we note that there may have been overpayments to defendant at times. Therefore, when arrearages are calculated, five percent simple interest should be added to all underpayments and deducted from all overpayments. Id. at 93, 439 N.W.2d 270.

Defendant further contends that she should have been named beneficiary of plaintiff's survivor benefit plan. 10 U.S.C. 1448. However, if she were to be named beneficiary, plaintiff's disposable retired pay would be reduced, and consequently her share of that retirement pay would likewise be reduced. 10 U.S.C. 1408(a)(4)(D). Additionally, benefits under the plan may be lost if defendant remarries before reaching age fifty-five. 10 U.S.C. 1450(b). We find no error in the trial court's decision. ³

Finally, defendant argues that the trial court should have granted her a life insurance policy on plaintiff to protect her interests in continued payments. Because we have found the property division to be fair and equitable, defendant is not entitled to any further property, including a life insurance policy. If she desires to insure against the risk that plaintiff may die prematurely, she can purchase the insurance herself.

We therefore affirm the judgment of the trial court, but remand for entry of an order clarifying that payments to defendant are to be based on forty-five percent of plaintiff's disposable retired pay and stating that when arrearages are calculated, five percent simple interest is to be charged on any underpayments and the same credited on any overpayments.

Affirmed in part and remanded for entry of an order clarifying the award and granting...