2013 COA 43
Colo. Ct. App.2013Background
- Marriage between Bruce and Drexler dissolved in 2010; husband ordered to pay substantial child support and maintenance arrearages.
- Bruce accumulated $101,486 in support arrearages and his law license was suspended due to nonpayment.
- Wife sought a QDRO to collect arrearages from Bruce's ERISA retirement plan held at the law firm.
- Bruce objected, claiming Colorado and federal law exempt retirement funds from assignment; trial court rejected his position.
- Trial court ordered transfer via QDRO, and, upon noncompliance, imposed sanctions and authorized transfer without Bruce's signature.
- Bruce appealed challenging the QDRO enforcement and related orders.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the QDRO allowed to assign ERISA funds for arrearages? | Bruce argues funds are exempt under state and federal law. | Drexler contends ERISA allows QDRO assignments to enforce support. | Yes; QDROs may enforce support in ERISA plans. |
| Is Colorado's exemption statute preempted by ERISA in this context? | Bruce asserts state exemption protects funds from attachment despite QDRO. | Drexler contends ERISA preempts state exemptions when a QDRO is used. | ERISA preempts the statute to the extent it adds restrictions beyond ERISA. |
| Was the noncompliance order properly entered against Bruce without a hearing? | Bruce did not demonstrate error requiring a hearing. | Drexler maintains the order was appropriate given noncooperation. | No reversible error; order affirmed. |
Key Cases Cited
- Boggs v. Boggs, 520 U.S. 833 (U.S. 1997) (ERISA anti-alienation with QDRO exception)
- LeBlanc v. LeBlanc, 944 P.2d 686 (Colo. App. 1997) (QDROs; ERISA and state law interaction)
- In re Marriage of Thomas, 389 Ill. App. 3d 214 (Ill. App. 2003) (QDRO enforcement of arrearages not barred by exemption)
- Nichols v. Nichols, 891 P.2d 1303 (Okla. Civ. App. 1995) (state exemption preemption by ERISA in QDRO context)
- Taylor v. Taylor, 338 F.3d 947 (8th Cir. 2003) (QDRO enforcement and ERISA preemption implications)
