When a retirement clause in a Georgia divorce agreement is unclear, the court reads it by ordinary contract rules, and small drafting choices decide who gets what.
A Share Is Enough
In Underwood v. Underwood, 282 Ga. 643 (2007), a husband argued that the retirement terms were too vague because the account balances were stated only as approximations. The Georgia Supreme Court disagreed. The agreement provided “an even division of the parties’ respective retirement accounts as of a stated date” and a one-third share of his pension, so “the percentage or share to which they would be entitled is clearly provided.”
The Formula in the Agreement Controls
In Gilreath v. Conner, 361 Ga. App. 201 (2021), the wife’s share of the husband’s pension was 27.4 percent, calculated on the years of marriage from February 1, 1983, to July 3, 2014. When he retired, the trial court awarded her 27.4 percent of his actual monthly payments. The Court of Appeals vacated that award, because ignoring “the explicit valuation period referenced in the Agreement” modified the decree.
Conditional Words and Missing Commas
In Christian v. Christian, 300 Ga. 263 (2016), a separation agreement said that “should they divorce, Wife shall be entitled to one-half of Husband[‘]s retirement, 401K or other employment benefits.” The Supreme Court held that “should they divorce” made the benefits payable only on divorce, so they were valued at the divorce nine years later, not at signing. But the list, with no comma before “or,” could mean one benefit of her choice or all of them, so the trial court had to look at the whole agreement and, if necessary, outside evidence. Moreover, because the clause said nothing about his premarital contributions, that portion stayed his.
So name the plan, state the share, fix the valuation date, and say whether premarital contributions are included. Each of those was litigated because someone left it out.
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This post is a quick overview of the law and is not intended as legal advice. Please feel free to contact our office for a consultation if you have questions about this or any other legal aspects regarding your case!