A recent case greatly affects the rights of Los Angeles residents, Carmona v. Carmona (9th Cir. 2008) 544 F.3d 988, by providing strong protections for an ex-wife (or ex-husband for that matter) that was a beneficiary of her ex-husband's retirement account. Where the husband later married his present wife and tried to switch his retirement to his present wife, the Court ruled that there was no reversing the benefit to the ex-wife if that retirement had become payable during the prior marriage.
Even when there is waiver language in the Marital Settlement Agreement, the Court will not replace the former spouse who is already locked in under a Qualified Joint and Survivor Annuity under ERISA.
However, the plan must be an ERISA regulated plan. What is interesting to note is that even if both parties somehow attempt a later agreement in a Qualified Domestic Relations Order, the Court will not give it any power. Simply put, once the ex-spouse retires and the prior spouse is named on that ERISA Retirement Plan, the deed is done. The rights are irrevocably vested! If you are concerned about your divorce and how things will end up, do not hesitate to contact the Offices of Frazee/ Laron.
