Calculation of pension division can be challenging. Typically a formula called “the Bangs formula” is used, but application of the formula can be complicated. In a 2010 case, a husband and wife divorced and reached a settlement agreement about all child custody, child support, and property division issues. The agreement was incorporated into the judgment of absolute divorce. The wife appealed with regard to the post-judgment entry of orders related to domestic relations and the husband’s pension. She claimed that her share of the pension was miscalculated.
The couple had married in 2000 and had a child two years later. They divorced after seven years. Before they married, the husband was in the Maryland National Guard, and he was serving on reserve status when they married. During the marriage, he worked as a paramedic for a city and had to contribute 6% of his salary to the Fire & Police Employees’ Retirement System. Later he became full-time in the army and served full time from then on, although he was on a paid military leave of absence at the time of the appeal. Meanwhile, the wife was a pharmacist employed by CVS.
The husband filed for divorce, and the wife filed a counter-complaint in 2006. During a merits hearing, the parties entered into an agreement. The parties agreed that the wife had an “if-as-when interest” in half of the marital share of the fire department benefits and the military pension. The court advised that the pension rights were set based on the number of months of the marriage, so as the pension rights increased, the wife’s share would not necessarily increase. The husband expressed he understood. Divorce was granted, and qualified domestic relation orders were supposed to be submitted. However, the parties could not reach agreement about the terms of the orders for the city pension and military pension. The wife filed a motion with regard to these orders, and the husband filed oppositions. Continue reading