Family Law

U.S. Supreme Court says ex-wife gets pension benefits

By Robert M. Kisselburgh, Esq.

Unanimous U.S. Supreme Court holds ex-wife entitled to pension benefits

In a follow-up to a previous post concerning a dispute between an ex-wife and her daughter over the ex-husband's pension benefits, the U.S. Supreme Court issued a unanimous opinion upholding the Fifth Circuit Court of Appeals' decision giving the benefits to the ex-wife. However, the U.S. Supreme Court disagreed with the Fifth Circuit reasoning and affirmed the ruling on other grounds.

To recap the facts, Mr. Kennedy was an employee of DuPont and participated in their savings and investment plan (SIP) that was an ERISA benefit plan. In 1971, Mr. Kennedy married and three years later signed a beneficiary designation identifying his new wife, Liv Kennedy, as the sole beneficiary of the SIP plan. Twenty years later, the couple divorced. As part of the divorce, the ex-wife agreed to relinquish all rights to husband?s pension benefits with DuPont. The agreement to waive those benefit was contained in the divorce decree. However, a Qualified Domestic Relations Order was not submitted covering these benefits nor did the husband ever change the beneficiary designation for the account.

In 1998, Mr. Kennedy retired from DuPont and later died in 2001. His daughter was appointed administrator of his estate. She sent a letter to DuPont requesting the Estate be paid the funds in the SIP. DuPont refused, stating that the beneficiary designation identified the ex-wife as the beneficiary. She also asked the ex-wife (her Mom) to relinquish her rights to the account and she refused. In fact, ex-wife asked DuPont to pay up and they sent the ex-wife the $400,000.00. Daughter, on behalf of the Estate, brought a lawsuit.

Full post as published by Mississippi Family Law Blog on January 27, 2009 (boomark / email).