Milwaukee woman entitled to interest from ex-husband’s benefits

A Wisconsin court recently decided that the ex-wife of a former Milwaukee fireman is entitled to 40 percent of his retirement pension beginning in 2001. The couple divorced after 24 years of marriage back in 1993. During that time, they worked with family law attorneys to draft a marriage settlement agreement. The agreement determined that the ex-wife would receive 40 percent of her former husband’s pension that he would begin to receive in 2001 when he turned 57.

Instead of receiving his pension in 2001 as planned, the fireman decided to join litigation concerning the duty disability benefits he had been receiving since 1985. The results of the litigation determined that the fireman would receive nontaxable disability benefits for life instead of the pension. He did not inform his ex-wife that he decided to take the disability option instead of the pension. When his wife learned through a family friend of this decision in 2009, she assumed that he had done this hoping that she would receive not receive any spousal support because of his decision.

The ex-wife decided to dispute her ex-husband’s decision, and a circuit court ruled in her favor. The former firefighter was ordered to pay his ex-wife the past-due payments that she should have received back in 2001 plus 3 percent interest. Her ex-husband was ordered to pay more than $160,000. The court also ruled that if he did not pay the past-due amount within one month and two weeks from the judgement, he would have to pay 12 percent interest on the amount owed. The ex-husband tried to appeal the decision, but the appeals court upheld the circuit court’s decision. Family law attorneys can be valuable advocates for people struggling with family law issues.

Source: State Bar of Wisconsin, “Court Sides With Ex-Wife in Pension Fight, Applies New Judgment Interest Rule,” Joe Forward, Sept. 13, 2012