Under Florida law, any community property is subject to equitable division by the courts in a divorce action. Typically, pension benefits and any other retirement benefits accrued during a marriage constitute community property. Additionally, parties are entitled division of cost of living adjustments under Florida law as well. Recently, a Florida court clarified whether a party that is awarded a portion of a spouse’s pension in a deferred retirement option program (DROP) is entitled to a cost of living adjustment, even if the DROP account is not created until after the divorce is final. If you want to learn more about how ending your marriage may impact you financially, it is in your best interest to speak to a Miami divorce attorney promptly.
Procedural History of the Case
It is reported that the husband and the wife married in 1999. In 2014, the husband filed for divorce. The following year, the court entered a final judgment of divorce that included provisions regarding the equitable distribution of the husband’s pension with the state retirement system. The provisions stated, in part, that the marital estate was distributed equally between the parties and that a QDRO must be prepared with regard to the husband’s retirement pension.
Allegedly, the court entered a QRDO that awarded the wife half of the husband’s retirement benefits that accrued from the date of the marriage to the date the divorce action was filed, to be taken as a deduction from each monthly benefit payable to the husband from the pension plan. One of the paragraphs of the QDRO provided for a proportionate share of any cost of living adjustment the husband received. The husband objected to the cost of living adjustment at the trial level. He then appealed. Continue reading ›