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Insurance presents first-impression issue

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The Indiana Court of Appeals determined today for the first time that post-retirement health insurance premiums paid by a former employer aren't a marital asset subject to a division.

In Anne M. Bingley v. Charles B. Bingley, No. 02A03-0904-CV-187, Anne Bingley appealed the division of assets in the dissolution of her marriage to Charles Bingley. The trial court order didn't include Charles' employer-paid, post-retirement health insurance premiums.

Anne argued the payments fall under subsection 2 of Indiana Code Section 31-9-2-98(b), as a retirement benefit not forfeited upon the termination of employment, and cited several Indiana cases that found pension benefits to be marital assets.

But the Court of Appeals ruled the premiums weren't a marital asset subject to division. The cases Anne cited involved monthly monetary payments made directly to the pension-holding spouse; Charles' benefit wasn't payable to him but was non-elective and couldn't be divided or transferred, wrote Judge Elaine Brown.

The appellate court found Gnerlich v. Gnerlich, 538 N.E.2d 285 (Ind. Ct. App. 1989), and Antonacopulos v. Antonacopulos, 753 N.E.2d 759 (Ind. Ct. App. 2001), to be instructive in that the underlying principle applied in those cases is that insurance policy coverage as part of an employee's retirement package may be included in the marital estate only when marital assets were used to obtain the benefits. Benefits that are purely supplemental are properly excluded from the marital estate, she wrote.

Judge Terry Crone wrote a concurring in result opinion in which he wondered if the Indiana General Assembly intended to define "retirement benefits" and "vested" in terms of the Internal Revenue Code. As it's currently written, I.C. Section 31-9-2-98(b) doesn't answer the question.

"If the legislature did intend to define 'retirement benefits' and 'vested' in terms of the Internal Revenue Code, then the health insurance premiums at issue would not be considered 'retirement benefits' and therefore would not be considered marital property subject to division," he wrote. "If the opposite is true, then we are left with the case law on which the majority relies as guidance for determining whether the premiums are 'retirement benefits' that are 'vested' under Indiana law."

He wants the legislature to address this perceived ambiguity.

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  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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