SENATE BILL REPORT

SB 5278

BYSenators Tanner and Conner

Requiring inclusion of military retirement pay as community property in the modification of community property settlements that were entered into between June 25, 1981, and January 31, 1983.

Senate Committee on Judiciary

Senate Hearing Date(s):February 3, 1987; February 5, 1987

Majority Report:  That Substitute Senate Bill No. 5278 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Talmadge, Chairman; Halsan, Vice Chairman; Bottiger, McCaslin.

Senate Staff:Lidia Mori (786-7461)

                  February 5, 1987

AS REPORTED BY COMMITTEE ON JUDICIARY, FEBRUARY 5, 1987

BACKGROUND:

Prior to June 5, 1981, military retirement pay was considered to be community property in Washington.  The U.S. Supreme Court then issued a decision which held that military retirement pay was not divisible as community property in a dissolution proceeding.  Congress subsequently enacted a law, effective February 1, 1983, which allowed the states to treat military retirement payments as community property.

SUMMARY:

Washington courts may modify community property settlements, judgments or decrees that became final between June 25, 1981 and February 1, 1983 to include a division of military retirement pay as community property.  Only military retirement compensation which is payable subsequent to February 1, 1983 may be considered by the court.

Any proceeding to modify a settlement, judgment or decree must be commenced prior to January 1, 1989.

EFFECT OF PROPOSED SUBSTITUTE:

Upon the filing of a petition for modification of decree of dissolution to reconsider division of military retirement pay community property settlements, judgments or decrees will be reconsidered by the court.  They may be modified such that military retirement compensation payable on or after February 1, 1983 is divided in a manner consistent with federal law and the laws of the state of Washington as they existed before June 26, 1981 and since February 1, 1983.

Fiscal Note:      requested

Senate Committee - Testified: Senator Tanner; Elmer Smith, American Association of Retired Persons; Daniel Doty; Beverly Doty, EX-P.O.S.E.; Pat Thibaudeau, Washington Women United; Rolf Giertsen; Allister Roth, American Association of Retired Persons