In re Marriage of Tracy Alan Howell and Lisa Ann Howell

Summary

The Iowa Supreme Court reviewed the division of a spouse’s defined-benefit pension in a marriage dissolution proceeding. It held that the district court improperly treated a vested monthly retirement benefit as the pension’s present value and directed use of a qualified domestic relations order under the percentage method. The court affirmed in part, vacated in part, modified the property settlement, and remanded with instructions.

Holdings

1. The district court erred by treating $3,274.55 as the present value of the pension fund; that amount represented Tracy Howell's vested monthly normal retirement benefit payable upon retirement.
2. The court declined to use the present-value method because the record lacked evidence sufficient to establish the pension's present value.
3. The district court was required to divide the Carpenter's Pension Fund between Lisa and Tracy using a QDRO and the percentage-method formula established in Benson, while protecting Lisa's surviving-spouse status.
4. The district court was required to remove the $3,274.55 pension valuation from Tracy's asset allocation and order Lisa to pay Tracy $1,637.28 to equalize the resulting property division.

Questions Presented

1. Whether the district court correctly valued Tracy Howell's Carpenter's Pension Fund at $3,274.55.
2. Whether the pension should be divided using a present-value method or the percentage method through a qualified domestic relations order.
3. What modification to the marital property settlement was required after removing the pension from the district court's asset division.

Disposition

reversed_and_remanded