Michael JANOVIC, Appellant,
v.
Dora JANOVIC, Appellee.
District Court of Appeal of Florida, First District.
*1097 W. Joel Boles and Tracey Scalfano Witt of Wilson, Harrell, Smith, Boles & Farrington, P.A, Pensacola, for Appellant.
Glenn K. Allen and Jennifer W. Fites of Glenn K. Allen, P.A., Jacksonville, for Appellee.
WOLF, J.
Michael Janovic (former husband) raises three issues in this appeal from an order entitled "Qualifying Court Order" rendered on July 18, 2000. We find no merit in the third issue concerning thе calculation of retirement pay awarded to Dora Janovic (former wife) and affirm as to that issue without further discussion. We restate the other two issues as follows: 1) Whether entry of the Qualifying Court Order violates the United States Supreme Court's holding in Mansell v. Mansell,
In April of 1999, the trial court entered a consent final judgment of dissolution of marriage terminating the parties' nineteen-yеar marriage. The judgment awarded the husband half of the retirement benefits earned by the wife during the marriage, and the wife half of the retirement benefits earned by the husband during the marriage. No alimony was awarded. The trial court specifically reserved jurisdiction in the judgment "to enter Qualified Domеstic Relations Order(s) or other necessary order(s)" so as to distribute the parties' awarded share in one another's retirement benefits.
Less than one year after entry of the consent final judgment, the former husband was discharged from the Navy and waived a portion of his retirement benefits in fаvor of receiving veterans' disability benefits. Following this change in the former husband's financial status, the former wife filed a motion to enforce the final judgment and equitable distribution or, in *1098 the alternative, for judgment against the former husband to reimburse her for money overpaid to the husband. After a hearing on her motion, the trial court entered the order on review. The former husband has not provided a transcript of the hearing on the former wife's motion. The order on appeal provides in pertinent part as follows:
1. Michael John Janovic has an interest in retirement benefits due tо his service in the U.S. Navy. His former spouse, Dora Janovic, shall receive from Michael Janovic's Disposable Retired Pay an amount as set forth below.
. . . .
2.(c) "Disposable Retired Pay" shall mean the total monthly retired or retainer pay to which the Member is entitled, as defined in 10 U.S.C. Sectiоn 1408(a)(4).
. . . .
15. The Member agrees not to merge the Member's disposable retired pay with any other pension and not to pursue any course of action that would defeat Former Spouse's right to receive a portion of the disposable retired pay of Member. Member agreеs not to take any action by merger of his disposable retired pay so as to cause a limitation in the amount of the total disposable retired pay in which member has a vested interest and, therefore, Member will not cause a limitation of Former Spouse's entitlement as desсribed above. Member agrees to indemnify Former Spouse for any breach of this paragraph as follows: If Member becomes employed or otherwise has his entitlement to military retired pay merged, which employment or other condition causes a merger of Member's disposable retired pay, Member will pay, or cause to be paid, directly to Former Spouse a monthly amount equal to the amount provided [elsewhere in this order], under the same terms and conditions as if those payments were made pursuant to the terms of this Order.
16. For purposes of interpreting this Order, "military retirement" includes disposable retired pay to which Member would be entitled to for longevity of active service duty and/or reserve component military service and all payments paid or payable under the provisions of Chapter 38 or Chapter 61 of Title 10 оf the United States Code, before any statutory, regulatory, or elective deductions are applied. It also includes all amounts of retired pay Member actually or constructively waives or forfeits in any manner and for any reason or purpose, including, but not limited to, any waiver made in order to qualify for Veterans Administration benefits. It also includes any sum taken by Member in addition to or in lieu of retirement benefits, including, but not limited to, voluntary separation incentive pay, special separation benefits, or any other form of compensation attributable to separation from military service instead of or in addition to payment of the military retirement normally payable to a qualifying retired member.
This order contains the same language used in the final judgment of dissolution entered in Abernethy v. Fishkin,
In Mansell, the United States Supreme Court addressed the extent to which state courts "may treat as property divisible upon divorce military retirement pay waived by the retiree in order to receive veterans' disability benefits." Mansell,
As in Abernethy, at the time of the initial dissolution decree and equitable distribution of property in this case, the trial court distributed only non-disability military pension benefits. Thus, as the supreme court concluded in Abernethy with regard to the final judgment at issue there, we conclude that the challenged оrder does not violate the requirement of Mansell that disability benefits should not be considered as marital property during equitable distribution. See Abernethy,
In Abernethy, the Florida Supreme Court also held that Mansell precluded trial courts from including in dissolution judgments indemnification provisions which require that veterans' disability benefits be the source of payments to the nonmilitary spоuse in the event the military spouse waives retirement benefits in favor of veterans' disability benefits. See id., at 240; see also Longanecker v. Longanecker,
The order also appears to require the former husband to indemnify the former wife for any reductions in his military retirement pay. Such indemnification does not violate the dictates of Mansell. See Abernethy,
The supreme court in Abernethy stated that there was a second feature оf the final dissolution judgment in that case which made it enforceable:
Second, the final judgment contained an indemnification provision which merely enforced the parties' property settlement agreement rather than dividing disability benefits. The indemnification provision clearly indicatеd the parties' intent to maintain level monthly payments pursuant to their property settlement agreement. Specifically, the provision precluded Abernethy from merging his retirement with another pension or pursuing any course of action which would defeat Fishkin's right to receive a portion of his "full net disposable retired or retainer pay." The provision also protected the wife's right to receive the property or the value of the property she had been allocated in the property settlement agreement by requiring Abernethy to indemnify Fishkin if he breached this provision. Most significantly though, the indemnification provision achieved both of these purposes without requiring that the indemnification funds come from disability benefits. Abernethy could pay Fishkin with any other available assets and, consequently, we conclude the final judgment did not violate Mansell.
Abernethy,
In the instant case, the dissolution judgment did not contain specific indemnification language as was contained in the Abernethy dissolution judgment. The dissоlution judgment here, however, did specifically award the former wife half of the former husband's pension benefits earned during the marriage, specifically reserved jurisdiction to enter necessary orders to distribute the former wife's share of those pension benefits, and reserved jurisdiction tо enforce the terms of the final dissolution judgment. In a remarkably similar case, a California appeals court stated that allowing a former wife to continue to receive the percentage of the husband's military retirement pay awarded to her in their dissolution judgment would not violаte the precepts of Mansell and would merely constitute enforcement of the parties' intent at the time of the dissolution agreement. See Krempin v. Krempin,
A trial court may not, in the guise of an enforcement proceeding, readdress *1101 the distribution of property when the property has been previously distributed, see DeSantis v. DeSantis,
As recognized in Abernethy, the key issue is whether the parties intended to maintain level monthly payments pursuant to their property settlement agreement. See Abernethy,
The equity of the result reached by the trial court in this case is undeniable. The United States Supreme Court in Mansell recognized that waivers of retirement pay in favor of veterans' disability benefits are not uncommon since disability benefits are exempt from taxation, and military retirees whо waive their retirement pay in favor of disability benefits increase their after tax income. See Mansell,
KAHN and BENTON, JJ., concur.
NOTES
Notes
[1] As discussed herein, the legal effect of the order in this case is unclear.
[2] Unlike Abernethy, hоwever, the present order was entered after the former husband was awarded disability retirement benefits. The question of whether the present order requires indemnification for benefits which were previously waived is not raised in this appeal and is, therefore, not addressed by this opinion.
[3] Both parties appear to agree that the former husband's action in taking disability retirement was voluntary.
