SENATE BILL REPORT

SHB 538

BYHouse Committee on Judiciary (originally sponsored by Representatives Locke, Brough, Wang, Unsoeld, Valle, Miller, Todd and Niemi)

Providing for the modification of judgments regarding the community property distribution of military retirement benefits.

House Committe on Judiciary

Senate Committee on Law & Justice

Senate Hearing Date(s):February 26, 1988

Senate Staff:Lidia Mori (786-7418)

AS OF FEBRUARY 26, 1988

BACKGROUND:

Military retirement compensation was treated as part of community property by Washington courts prior to June 25, 1981.  The United States Supreme Court McCarty decision on June 25, 1981 held military retirement benefits could not be considered community property.  Congress overturned the Supreme Court decision on February 1, 1983 and military retirement pay was considered again part of community property.  Congress acted to permit community property settlements finalized during the McCarty period, on or after June 25, 1981 and before February 1, 1983, to be modified to include a division of military retirement compensation.

As the law now stands, a spouse whose community property settlement was finalized during the McCarty time period can petition to reopen the final property settlement.  However, the court can deny the petition.  A superior court rule of civil procedure states that motions shall be made not more than one year after the final judgment was entered.

SUMMARY:

The congressional act which permits a state to characterize military retirement compensation as community property is applied retroactively to property settlements finalized during the McCarty period.  A McCarty-period property settlement must be reopened to have military retirement pay considered divisible community property if a motion is made before January 1, 1990, and may be reopened if a motion is made on or after January 1, 1990.

Appropriation:  none

Revenue:   none

Fiscal Note:    requested February 26, 1988