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In Re Marriage of Stenquist

Citations: 145 Cal. App. 3d 430; 193 Cal. Rptr. 587; 1983 Cal. App. LEXIS 1976Docket: Civ. 28033

Court: California Court of Appeal; July 26, 1983; California; State Appellate Court

Narrative Opinion Summary

This case involves an appeal concerning the classification of military disability pension payments as community property under California law. The appellant, a former military member, contested a ruling that awarded his ex-spouse a portion of his disability retirement pay. The California Supreme Court had earlier determined that a spouse's unilateral decision to receive a disability pension, instead of a retirement pension, improperly converts community property into separate property, thus violating state community property protections. Despite the United States Supreme Court's McCarty decision, which addressed military retirement pay, the appellate court found that its implications did not affect final judgments prior to its issuance, such as this case. The court invoked the doctrines of res judicata and law of the case to bar the appellant's challenge. Additionally, the appellant's argument that the award violated the supremacy clause was dismissed, as the Uniformed Services Former Spouses' Protection Act did not explicitly preempt state law regarding disability pay. Consequently, the appellate court affirmed the lower court's classification, ensuring the ex-spouse's entitlement to a share of the disability pension, thereby upholding California's community property principles.

Legal Issues Addressed

Classification of Military Disability Retirement Pay Under California Law

Application: Under California law, disability retirement pay is classified as separate property, but the court in this case awarded a portion of it as community property due to the husband's election to receive a higher disability pension.

Reasoning: Under California law, disability retirement pay for military members is classified as separate property. In the case of In re Marriage of Stenquist, a court awarded a portion of Colonel Stenquist's disability retirement pay to his ex-spouse because he chose to receive a disability pension of 75% of his base pay instead of a nondisability retirement of 65%.

Community Property Law and Military Disability Pensions

Application: The California Supreme Court ruled that a spouse cannot unilaterally convert community property into separate property by electing to receive a military disability pension instead of a retirement pension.

Reasoning: The California Supreme Court had previously determined that allowing a spouse to unilaterally elect to receive a military disability pension instead of a retirement pension would transmute community property into separate property, undermining California's community property protections.

Res Judicata and Law of the Case Doctrine

Application: The appellate court held that the doctrines of res judicata and law of the case precluded the husband from contesting the final decision of the California Supreme Court regarding the classification of disability retirement payments.

Reasoning: The appellate court found that the husband could not challenge the final decision of the California Supreme Court, as McCarty's implications would only apply to judgments not yet final at its issuance. Thus, the doctrines of res judicata and the law of the case barred him from relitigating the treatment of his disability retirement payments.

Supremacy Clause and State Law Preemption

Application: The husband argued that the classification of military disability retirement pay as community property violated the supremacy clause; however, the court noted that McCarty did not address disability retirement specifically and that Congress had not explicitly preempted state law in this regard.

Reasoning: The husband further contended that any award of disability retirement pay as community property violated the supremacy clause of the U.S. Constitution. However, the court noted that McCarty did not address disability retirement specifically and highlighted the enactment of the Uniformed Services Former Spouses' Protection Act, which supports the validity of such awards.

Uniformed Services Former Spouses' Protection Act

Application: The Act allows state courts to classify military retirement pay as community property but explicitly excludes disability retirement pay from this classification, thus permitting states like California to apply their community property laws.

Reasoning: The Act modifies the ruling in McCarty, allowing courts to classify disposable retired or retainer pay for military members post-June 25, 1981, as either solely the member's property or as community property with their spouse, based on jurisdictional law (10 U.S.C. 1408(c)(1)). However, it explicitly excludes disability retirement pay from this classification (10 U.S.C. 1408(a)(4)).