HOUSE BILL REPORT

HB 538

BYRepresentatives 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

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (13)

     Signed by Representatives Armstrong, Chair; Crane, Vice Chair; Belcher, Brough, Lewis, Locke, Meyers, Moyer, Patrick, Schmidt, Scott, Wang and Wineberry.

Minority Report:     Do not pass.  (1)

     Signed by Representative Padden.

House Staff:Diane Noda (786-7779)

AS REPORTED BY COMMITTEE ON JUDICIARY FEBRUARY 1, 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 l, 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 l, 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:

SUBSTITUTE BILL:  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.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill changes the expiration date and effective date from January 1, 1989 to January 1, 1990.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Beverly Doty, NW Washington Chapter EXPOSE; Toni Wallner; Thelma Saltman, Washington Women United.

House Committee - Testified Against: Dan Doty, American Retirees Association; Damon H. Steward, American Retirees Association.

House Committee - Testimony For:     The bill allows an ex-spouse the opportunity to reopen a McCarty-period property settlement.

House Committee - Testimony Against: The bill reopens finalized property settlements and adds to court congestion.  Other groups may seek to reopen finalized property settlements.