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Smart Summary

Factual and Procedural Background

The appellee filed a petition seeking modification of the parties' 1982 divorce decree to obtain an equitable division of the appellant's military retirement pension benefits. The settlement agreement incorporated in the decree purported to resolve all issues regarding alimony and property division. At the time of the divorce, military pension benefits, although vested, were not subject to equitable division under the then-existing law. Subsequent changes in federal law, specifically the Uniformed Services Former Spouses' Protection Act, 10 U.S.C. § 1408, altered the legal landscape regarding such benefits. The trial court denied the appellant's motion to dismiss the petition, prompting this appeal.

Legal Issues Presented

  1. Whether a divorce decree that settled all alimony and property division issues can be modified to equitably divide military retirement benefits that vested before the divorce but were not subject to division under the law at that time.
  2. Whether statutory authority exists to permit modification or revision of a divorce decree for equitable division of property after final judgment.

Arguments of the Parties

Appellee's Arguments

  • The appellee contended that OCGA § 9-11-60(h) allows a judgment to be set aside or modified for "just cause," which should authorize modification of the divorce decree to include an equitable division of the military pension benefits.
  • She relied on the changed legal environment following the enactment of the Uniformed Services Former Spouses' Protection Act, arguing that this justified revisiting the pension division.

Appellant's Arguments

  • The appellant argued that OCGA § 19-6-19 does not authorize modification or revision of judgments for equitable division of property.
  • He maintained that the statutory scheme governing alimony and property division provides exclusive methods for modification, none of which permit reopening settled property division issues.
  • The appellant emphasized the principle against retroactive application of laws and the absence of any statute authorizing modification of a divorce decree to include military pension benefits after final judgment.
  • He also noted that the petition failed to state a claim upon which relief can be granted under OCGA § 9-11-12.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Stumpf v. Stumpf, 249 Ga. 759 (1982) Recognition that military retirement benefits acquired during marriage are marital property subject to equitable division. Referenced to establish the baseline legal understanding of military pensions as marital property.
Courtney v. Courtney, 256 Ga. 97 (1986) Supports the view that vested and unvested military retirement benefits are marital property subject to division. Used to assume that military benefits fall within marital property subject to equitable division.
Summerlin v. Summerlin, 247 Ga. 5 (1981) Permanent alimony rights derive solely from statutory law. Applied to distinguish alimony from equitable division of property and to limit modification authority.
Lloyd v. Lloyd, 183 Ga. 751 (1937) Alimony is derived from statutory law. Supported the statutory basis for alimony and its modification.
Fuller v. Squires, 242 Ga. 475 (1978) OCGA §§ 19-6-18 through 19-6-27 provide the exclusive method for revising or modifying alimony provisions. Confirmed limitation on modification procedures for alimony.
Stokes v. Stokes, 246 Ga. 765 (1980) Equitable division of property is statutory; modification of property division in divorce decrees is permissible only if authorized by statute. Used to affirm that modification of property division requires statutory authority.
Peters v. Peters, 248 Ga. 490 (1981) Alimony and equitable property division are distinct concepts. Clarified that permanent alimony statutes do not cover modification of property division awards.
Randall v. Dyche, 248 Ga. 438 (1981) Failure to retain jurisdiction bars modification of divorce decree but does not preclude pursuing undetermined property rights. Distinguished as inapplicable because the property rights here were determined in the divorce decree.
Rooks v. Rooks, 252 Ga. 11 (1984) Classification of property allocations into fixed (not modifiable) and terminable (modifiable) categories. Applied to suggest vested pension benefits are fixed allocations not subject to modification.
Stone v. Stone, 254 Ga. 519 (1985) Supports the principle that vested property allocations are not subject to modification. Reinforced the fixed nature of vested military pension benefits.

Court's Reasoning and Analysis

The court began by acknowledging that military retirement benefits acquired during marriage are now considered marital property subject to equitable division. However, it emphasized that the 1982 divorce decree incorporated a settlement agreement that purportedly resolved all alimony and property division issues under the law then in effect, which did not allow division of vested military pensions.

The court analyzed the statutory framework governing modification of divorce decrees, noting that OCGA § 19-6-19 does not authorize modification of property division awards and that the statutes governing alimony provide the exclusive methods for modifying alimony awards. Equitable division of property is also statutory and may only be modified if authorized by statute.

The appellee's reliance on OCGA § 9-11-60(h), which permits setting aside or modifying judgments for just cause, was rejected because this provision applies only to direct attacks on judgments by specific procedural methods (motion for new trial or motion to set aside), neither of which applied here. Further, a former method allowing equity complaints to set aside judgments was abolished prior to the filing of this petition.

The court found no statute authorizing retroactive modification of the divorce decree to include military pension benefits that were vested and not subject to division at the time of divorce. It underscored the state's general policy against retroactive application of laws.

Referencing prior case law, the court distinguished this case from situations where property rights were not determined in the divorce action. Here, the property division was settled, and the pension benefits were simply not considered due to the law at the time.

The court noted a concurring opinion in Rooks v. Rooks categorizing vested benefits as fixed allocations not subject to modification, which supports the conclusion that the pension benefits cannot now be equitably divided.

Accordingly, the petition failed to state a claim upon which relief could be granted, warranting dismissal under OCGA § 9-11-12.

Holding and Implications

The court reversed the trial court's denial of the motion to dismiss and held that the petition to modify the divorce decree to equitably divide vested military retirement pension benefits was not authorized by statute and must be dismissed.

The direct effect is that the appellee cannot modify the 1982 divorce decree to include an equitable division of the military pension benefits vested at the time of divorce. The court did not establish any new precedent permitting retroactive modification of property division awards in divorce decrees, reaffirming that such modifications require explicit statutory authority. Thus, the ruling preserves the finality of divorce decrees with respect to property division settled under prior law.

HOLLER v. HOLLER.

MARSHALL, Chief Justice.

The appellee filed a petition against her ex-husband (appellant) to modify the parties' 1982 divorce decree so as to grant her an equitable division of the defendant's military retirement pension benefits. She alleged that the settlement agreement, which was incorporated in the decree, purported to resolve all issues regarding alimony and property division, but that the pension benefits, which were vested at the time of the divorce, were not subject to property division in favor of the spouse in divorce cases under the law in effect at the time of their divorce, which law subsequently had been changed by the Uniformed Services Former Spouses' Protection Act, 10 U.S.C. § 1408. The trial court denied the defendant's motion to dismiss the petition. We reverse.

See Stumpf v. Stumpf, 249 Ga. 759, fn. 1 ( 294 S.E.2d 488) (1982).

Assuming that vested and unvested military retirement benefits acquired during the marriage are now marital property subject to equitable division (see Stumpf, supra; Courtney v. Courtney, 256 Ga. 97 (2) ( 344 S.E.2d 421) (1986)), the issue before us is whether the divorce decree, which purported to settle all issues regarding alimony and property division, can be modified so as to grant an equitable division of these benefits, which were not subject to equitable division at the time of the divorce.

The plaintiff-appellee properly concedes that OCGA § 19-6-19 is not authority for the modification or revision of judgments for equitable division of property. The right to permanent alimony in conjunction with divorce is derivable solely from statutory law, Summerlin v. Summerlin, 247 Ga. 5 ( 274 S.E.2d 523) (1981); Lloyd v. Lloyd, 183 Ga. 751 ( 189 S.E. 903) (1937), and the statutory law in OCGA §§ 19-6-18 through 19-6-27 "provides the exclusive method by which the alimony provisions of a divorce decree may be revised and modified." Fuller v. Squires, 242 Ga. 475, 477 (2) ( 249 S.E.2d 261) (1978) and cit.; OCGA § 19-6-26 (a). Similarly, it was held in Stokes v. Stokes, 246 Ga. 765, 768 (3) ( 273 S.E.2d 169) (1980), Bowles and Marshall, JJ., dissenting, that equitable division of property in conjunction with divorce is derivable from statutes (OCGA §§ 19-5-5 (6); 19-5-13), hence revision or modification of the provisions of a divorce decree for equitable division of property is permissible only if and as authorized by statute. Although then Justice Hill, in his concurring opinion in Stokes, supra, p. 773, refers to separating the components of the permanent-alimony award, in which he seems to include, on p. 772, the component of equitable division of property, "[i]t cannot be denied that alimony and equitable property division are not synonymous. See Stokes v. Stokes, supra." Peters v. Peters, 248 Ga. 490, 491 (2) ( 283 S.E.2d 454) (1981). Thus, the definition of permanent alimony within OCGA Ch. 19-6 is not sufficiently broad to include the revision or modification of awards of equitable division of property within the scope of OCGA § 19-6-19.

The plaintiff-appellee contends that OCGA § 9-11-60 (h) provides that a judgment may be set aside or modified for just cause, and that this would authorize the revision or modification here sought. However, the exact wording of the pertinent portion of that subsection is that "generally judgments and orders shall not be set aside or modified without just cause and, in setting aside or otherwise modifying judgments and orders, the court shall consider whether rights have vested thereunder and whether or not innocent parties would be injured thereby . . ." (Emphasis supplied.) Rather than authorizing any judgment to be set aside or modified any time there is deemed to be "just cause," however, this subsection merely provides for conditions for setting aside judgments and orders which are subject to attack by either of the two exclusive methods of direct attack prescribed in § 9-11-60, i.e., motion for new trial or motion to set aside, neither of which is applicable here.

A third method — the use of a complaint in equity to set aside a judgment, provided by former § 9-11-60 (e) — was specifically prohibited by the 1986 amendment. Ga. L. 1986, p. 294, § 1, effective July 1, 1986, hence was not available, even if applicable, as of the filing of the present petition on August 7, 1986.

We are aware of no statute, hence no basis, authorizing the revision or modification here sought. Had the General Assembly wished to authorize such a proceeding, such statutory authority could have been enacted in the interim following this court's recognition/creation of the right to equitable distribution of property in 1980 in Stokes, supra. The general policy of this state is against the retroactive operation of laws. See Art. I, Sec. I, Par. X, 1983 Ga. Const.

In Randall v. Dyche, 248 Ga. 438 ( 284 S.E.2d 18) (1981), we pretermitted the issue of whether or not jurisdiction may be reserved as to the issue of property division, and held that the parties' failure to so retain jurisdiction in their settlement agreement, though barring the right to modify the divorce decree, nevertheless "does not preclude [the plaintiff] from pursuing rights she may have in the property not determined in the divorce action." (Emphasis supplied.) Randall is not authority for modification here, however, where the issue of property rights was determined in the divorce action, albeit without consideration of the benefits in question, which were not available to the plaintiff under then-existing law.

We note that the same result is probably reached by the analysis employed by Justice Weltner in his concurring opinion in Rooks v. Rooks, 252 Ga. 11, 18 ( 311 S.E.2d 169) (1984), in which he advocated that we "cast off the servitude of our old labels, which generated the distinction between `alimony' and `equitable division,'" and "consider instead the substance of the permissible re-arrangement of economic resources cognizable under our law." Id. p. 14. At p. 17, he categorizes all allocations as either fixed allocations, which, "being already perfected (or completed, or vested), are not subject to modification," and "terminable allocations," viz., "allocations of existing or anticipated economic resources the right to receive which, or to continue to receive which, is terminable either ex vi termini the allocation itself, or by operation of law," which are subject to modification. Under this analysis, the defendant's pension benefits, being already vested, might be considered a fixed allocation, hence not subject to modification. See also Stone v. Stone, 254 Ga. 519 ( 330 S.E.2d 887) (1985). We also note that evidence of military retirement benefits already being collected by the husband, can be considered as to the issue of alimony. Courtney v. Courtney, 256 Ga. 97, supra, (1) and cits.

The petition failed to state a claim upon which relief can be granted, and should have been dismissed. OCGA § 9-11-12.

Judgment reversed. All the Justices concur.

DECIDED APRIL 9, 1987.
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HOLLER v. HOLLER
(Apr 9, 1987)