2011
— Alert —
Wisconsin Supeme Court Issues Decision in McReath
On July 12, 2011, the Supreme Court of Wisconsin issued their opinion in McReath v. McReath, No. 2009AP639 (July 12, 2011), which affirmed the published opinion of the Court of Appeals.
The questions presented were as follows:
Whether the entire value of the salable professional goodwill of Tim's interest in Orthodontic Specialists, S.C. could be counted as divisible property in a marital estate, and
If the answer to the first question was yes, did the circuit court double count the value of the professional goodwill in Orthodontic Specialists when it based Tracy's maintenance award on Tim's expected future earnings from Orthodontic Specialists.
The Supreme Court concluded that the entire value of the salable professional goodwill was properly counted as divisible property in the marital estate. Moreover, they concluded that the circuit court did not double count the professional goodwill from Orthodontic Specialists in the maintenance award. Accordingly, the decision of the court of appeals was affirmed.
Editor's Notes
Please note that a detailed summary of this case will be in the August 1, 2011 FamLawUpdate.
Please check an upcoming issue of the Wisconsin Lawyer for a complete critical analysis of this holding in my column.
— Alert —
Wisconsin Supeme Court Issues Decision in Topolski v. Topolski
On July 8, 2011, the Supreme Court of Wisconsin issued their opinion in Topolski v. Topolski, No. 2009AP2433 (July 8, 2011), which modified and as modified affirmed the unpublished decision of the Court of Appeals.
The circuit court interpreted the parties' Marital Settlement Agreement as requiring Patrick to pay Ellen $912.88 per month from his disability benefits under a pension plan. The circuit court order awarded judgment in the amount of $83,072.08 plus interest to the wife and found the husband in contempt for failing to comply with the Marital Settlement Agreement. On appeal, the court reversed that part of the circuit court order finding the husband in contempt and requiring him to pay his wife $912.88 per month with interest from December 2001 when he began receiving monthly disability payments from the pension plan. The court of appeals concluded that the wife was not entitled to receive $912.88 from the monthly disability pension benefit but was entitled to receive $912.88 from the monthly retirement benefit when the husband reached the age of 65.
The issue presented is whether the husband's receipt of disability pension benefits paid under the Pension Plan, beginning in December 2001 when he was 53 years old, required him to pay $912.88 per month to the wife pursuant to their judgment of divorce.
The Supreme Court concluded as follows:
The Marital Settlement Agreement's reference to "all retirement, pension, and deferred benefit accounts" did not address disability benefits.
The husband's disability pension under the Pension Plan, beginning when he was 53 years old and continuing until he attained the age of 62, replaced lost wages and therefore did not constitute a retirement, pension, or deferred benefit account under the Marital Settlement Agreement.
The husband's disability pension under the Pension Plan when he reaches the age of 62 constitutes a retirement, pension or deferred benefit account under the Marital Settlement Agreement and therefore, the husband must pay the wife $912.88 per month if and when the husband receives the disability pension under the Pension Plan.
Accordingly, the Supreme court affirmed the decision of the court of appeals reversing that portion of the order of the circuit court holding the husband in contempt and ordering him to make payments of $912.88 per month with interest to the wife from December 2001. The Supreme court however, modified the decision of the court of appeals to provide that under the Marital Settlement Agreement the wife is entitled to $912.88 per month if and when the husband receives the disability pension under the Pension Plan beginning the first month immediately following his 62nd birthday.
Quality, Respect, Sensitivity
