Marriage of Janes

Summary

A 2010 settlement awarded Wife $113,392 from Husband's 401(k), but the money sat in his account until 2014. Wife sought a QDRO adding gains and losses back to the 2009 separation date. The court held the sum became her separate property when the agreement was executed on April 19, 2010, so later gains and losses were hers under Family Code 770(a)(3), and awarding them did not modify the judgment. It rejected Husband's claim that the sum was a fixed equalization payment, since nothing in the agreement said so. Wife had not given notice or shown good cause for an alternative valuation date under section 2552, so the start date was wrong. Affirmed, with directions to change the start date to April 19, 2010.

What it means for the financial analysis

When a division leaves money in the paying spouse's account, run the earnings schedule on the awarded amount from the judgment or execution date. Do not run it from the date of separation unless someone has properly asked for an alternative date with good cause. The movement between separation and judgment stays in the community pool, so a schedule that credits it to one side will be challenged. Check the agreement language too, because a sum tied to a particular market-exposed account supports gains and losses, and a fixed-dollar claim needs the document to say so.

Also available on CourtListener.