California Appellate Court Rules CalPERS Credit Is Community Property (In Re Marriage Of Green)

In a case of first impression, a California appellate court was asked to consider how to classify four years of credit in the California Public Employees’ Retirement System (CalPERS) that a husband by the name of Timothy Green elected to purchase with community money during his marriage to his wife Julie. Timothy was able to purchase this credit due to four years of military service that he performed prior to the marriage. The trial court held that since the military service was prior to the marriage, the credit purchased during the marriage was Timothy’s separate property but that Julie could receive reimbursement of community property money that was spent on the credit. However, the appellate court reversed the trial court’s decision and ruled that the four years of credit was community property was community property because it was purchased with funds during the marriage and Julie was entitled to more than just a reimbursement.

The Court held in its decision that was filed on May 16, 2012:

Here, the military service credit was indisputably purchased during the marriage with community funds. We agree with Julie that because the contractual right to receive four additional years of retirement credit based on premarital military service was obtained during the marriage, it was “stamped a community asset from then on”…notwithstanding the fact that the credit was based on service that predated the marriage…”

Farzad Family Law stays on top of California Appellate and Supreme Court decisions that affect divorce and family law. Contact us today for a case strategy session to go over the facts of your Orange County divorce and family law case. Our lawyers are intelligent and experienced and ready to help you.

Warmest Regards,

B. Robert Farzad
Orange County Divorce & Family Law Attorneys
1851 E. 1st Street, Suite 1150
Santa Ana, CA 92705
Telephone: (714) 937-1193
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