802 N.W.2d 482
Wis.2011Background
- divorced 1995; Marital Settlement Agreement divided all retirement, pension, and deferred benefit accounts in the husband’s name for wife to receive $912.88 per month, payable if and when received
- husband began disability pension from Electrical Construction Industry Pension Plan in December 2001 at age 53
- wife sought enforcement in 2008; circuit court held husband in contempt for not paying $912.88/month from disability benefits and for unpaid equalization
- court of appeals reversed contempt and held disability benefits not payable to wife until age 65; affirmed other aspects
- Wisconsin Supreme Court held disability pension before age 62 is not a retirement/pension/deferred benefit under the agreement, but disability pension after age 62 is; ordered payments begin the first month after 62; modified the appellate ruling accordingly
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the Marital Settlement Agreement cover disability benefits? | Topolski contends agreement divides all retirement/pension/def deferred benefits without excluding disability benefits. | Topolski argues disability is not within 'retirement, pension, or deferred' categories, so not divisible. | Disability benefits are not expressly covered before 62; but disability after 62 becomes a retirement-like benefit and is divisible. |
| When does the wife’s payment obligation attach for disability benefits? | Wife asserts entitlement from the start of disability payments (December 2001). | Husband argues obligation begins when disability pension becomes a retirement benefit at 62. | Wife is entitled to 912.88 per month beginning the first month after the husband reaches 62. |
| Should the court treat disability pension as income or as a divisible asset before/after 62? | Disability pension is part of the marital property division and is divisible when received. | Disability pension is income replacement and not a divisible asset. | Court recognizes disability benefits as having characteristics of both wages replacement (before 62) and deferred compensation (after 62); but for enforcement, the obligation becomes payable when the disability pension is, or effectively becomes, a retirement benefit after 62. |
Key Cases Cited
- Leighton v. Leighton, 81 Wis.2d 620, 261 N.W.2d 457 (Wis. 1978) (distinguishes disability pension from divisible retirement assets; disability benefits treated as income)
- Barker v. Kansas, 503 U.S. 594, 594 (1992) (U.S. 1992) (disability and retirement benefits analyzed for income vs. asset treatment)
- Schultz v. Schultz, 194 Wis.2d 799, 808, 535 N.W.2d 116 (Wis. Ct. App. 1995) (deference when judgment is ambiguous; independent review when unambiguous)
- Jacobson v. Jacobson, 177 Wis.2d 539, 502 N.W.2d 869 (Wis. Ct. App. 1993) (interpretation of judgments incorporating settlements; ambiguity standard)
- Thurston v. Burnett & Beaver Dam Farmers' Mut. Fire Ins. Co., 98 Wis. 476, 74 N.W. 131 (Wis. 1898) (plain language governs contract interpretation when unambiguous)
