Court: Don't Factor in COLAs in Divorce

December 9, 2002 (PLANSPONSOR.com) - A Michigan appeals court has ruled that a divorced couple did not intend to include cost of living adjustment increases in the ex-wife's portion of her ex-husband's pension awarded in a divorce judgment.

According to Washington-based legal publisher BNA, the appeals court found that the ex-husband’s COLA and rank increases were not subject to division by the court.

The court noted that the divorce judgment provided that the parties were awarded their respective pensions “free and clear of any claim of right, title, or interest of the other party, and that the ex-husband would pay 50% of his disposable retired pay subject to its value on February 11, 1991.”

The case is Gingrich v. Vanderwerp,Mich.Ct. App., No. 226039, unpublished 12/3/02.

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