Merrill v. Merrill

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When Robert and Diane Merrill divorced in 1993 the family court awarded each party one-half of Robert’s military retirement pay (MRP) disability benefits as their separate property. In 2004, the Department of Veterans Affairs (VA) found Robert eligible to receive Combat-Related Special Compensation (CRSC). Robert waived a portion of MRP to receive CRSC. Consequently, Diane’s monthly share of MRP decreased significantly. In 2010, Diane requested that the family court award her arrearages from her reduced share of MRP and compensate her for future reduced payments of MRP. The family court denied the petition, concluding that Ariz. Rev. Stat. 25-318.01 - which prohibits courts from “making up” for a reduction in MRP due to a retired veteran receiving CRSC benefits by awarding additional assets to the non-military ex-spouse - proscribed the requested relief. The court of appeals reversed, concluding that section 25-318.01 does not apply to CRSC awards. The legislature subsequently amended section 25-318.01 to make it applicable to CRSC benefits. Thereafter, the court of appeals vacated its order and deemed Diane’s 2010 petition denied. The Supreme Court vacated the court of appeals’ decision, holding that section 25-318.01 cannot apply to preclude indemnification when a retired veteran makes a post-decree waiver of MRP to obtain CRSC benefits and the decree was entered before section 25-318.01’s effective date. View "Merrill v. Merrill" on Justia Law