Under Wisconsin law, marital property is treated as community property in a divorce, meaning that assets are divided equally. This division of property generally applies to retirement accounts as well.

Typically, a “Qualified Domestic Relations Order” or QDRO will be issued related to retirement benefits. This is a document which designates that a former spouse will receive a portion of a retirement plan.

However, what if action on a QDRO is not commenced until many years after the initial divorce decree? The Wisconsin Supreme Court discussed this situation in the case of Johnson v. Masters.

A QDRO entered . . . 20 years after the divorce

The couple was divorced in 1989. The divorce agreement included a provision stating that half of the husband’s Wisconsin Retirement System (WRS) benefits accrued during the marriage would go to the wife. The document also specified that a QDRO had to be submitted to secure these rights.

In 2009, nearly 20 years after the divorce was final, the husband retired from his job as a school janitor. The wife then filed a QDRO.

The husband moved to dismiss, arguing that the wife’s request was barred by a Wisconsin state law which stated that an action must be commenced within 20 years after a judgment or decree, such as a divorce decree, was entered.

The circuit court granted the husband’s motion to dismiss, and the wife appealed.

Was the filing too late?

The Wisconsin Supreme Court noted that the applicable Wisconsin law did require that action upon a decree had to be commenced within 20 years, and there was no evidence that the legislature intended to exclude family law judgments from this requirement.

However, the pension plan in this case was governed by the WRS, and the laws covering the WRS did not initially make a provision for the entering of QDROs. It was not until 1998 that legislation allowed the state retirement system to accept a QDRO.

Therefore, although the marriage in this case had ended in 1989, the time limit on seeking a QDRO did not begin to run until the law allowed a QDRO in 1998. Thus, the wife had effectively entered the QDRO within the 20-year limit, despite the fact that the divorce proceedings had ended in the late 1980s.

Complex legal and financial issues

The legal and financial issues surrounding a divorce can be very complex, and it is important that all aspects of your divorce are carefully reviewed by an experienced family law attorney to ensure that all proper steps are taken to secure your assets. Seek an attorney who will aggressively assert your interests to achieve a fair result.