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CSRS Benefits and Divorce in Arizona | Hildebrand Law, PC

Posted on : October 2, 2018, By: Chris Hildebrand

Division of CSRS Retirement in a Divorce in Arizona

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If you or your spouse is a federal employee and accumulating benefits in a Civil Service Retirement System there are some things you need to know about how those benefits may be divided in a divorce in Arizona.

The first thing you need to know is that, unlike traditional retirement plans, participants in the CSRS retirement plans do not contribute to social security.

If they have accumulated social security benefits and began receiving those benefits there interest in their CSRS plans will be reduced. Federal law, likewise, prohibits the division of either spouse’s social security benefits.

So, what happens when one spouse has a traditional retirement plan which is equally divided but that spouse gets to keep all of their social security on top of their retirement plan while the other spouse has a CSRC plan that is to be divided but that person will receive no social security benefits upon retirement?

Well, the Arizona Court of Appeals in the published decision in the case of Kelly vs. Kelly provided an answer to that inequitable result.

Learn About the Division of CSRS Retirement Benefits in a Divorce in Arizona from Our Arizona Licensed Attorney Chris Hildebrand of Hildebrand Law, PC.

The Court of Appeals concluded that the community property laws provided for all community property to be equitably divided in a divorce.

The question then became was it fair and equitable to equally divided all of the husband’s CSRC benefits given he would not receive social security benefits and his wife would receive her half of his CSRC benefits and also keep 100% of her social security benefits.

Stated differently, would it have been a more fair and equitable division of all of the parties’ community property to unequally divide the husband’s CSRC benefits to account for the fact the wife would be keeping 100% of her social security when the husband could not collect any social security benefits.

The Arizona Court of Appeals stated in its opinion that “community funds [in social security payments] have been diverted to the separate benefit of one spouse. We believe this situation compels an equitable response.

CSRS Benefits in Arizona Divorce.

The appellate court concluded that the proper approach was to find the present value as of the date of the divorce of the social security benefits the husband would have received had he participated in the social security system during the marriage.

That present value amount may then be awarded to the husband from his CSRS plan and any remaining amount in the CSRC retirement may then be divided between the parties.

The court concluded its ruling did not conflict with the prior ruling in the Luna case because there was no attempt to value or divide the wife’s social security benefit.

Hence, there was no violation of federal law that prohibits a state court from dividing social security benefits in a divorce.

The appellate court commented that inequity may still exist in the social security benefits each spouse will enjoy in the future if one spouse earned significantly more than the other spouse because the court cannot divide or equalize those social security payments.

It also recognized that inequity was outside the power of the courts in Arizona due to the existence of federal law.

However, it concluded the ruling, in this case, was as close as the court could come to dividing CSRS retirement in divorce in Arizona.

It is very important to note that the Court of Appeals, in this case, warned that its approach to dividing CSRS retirement pay, in this case, was specific to the facts of this individual case.

It warned that each case must be analyzed on the facts of each particular case.

So, the outcome may have been different, for example, if the wife had little to no social security benefits.

It is important, therefore, to find out what the other spouse will receive in social security benefits when analyzing this issue in other cases.

Call us at (480)305-8300 to schedule your personalized consultation with one of our divorce attorneys with experience in dividing Civil Service Retirement System benefits in divorce in Arizona.

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Chris Hildebrand

Chris Hildebrand wrote the information on this page about Civil Service Retirement System benefits in a divorce to ensure everyone has access to information about community property laws in Arizona. Chris is a divorce and child custody attorney at Hildebrand Law, PC. He has over 24 years of Arizona family law experience and has received multiple awards, including US News and World Report “Top Arizona Divorce Attorneys”, Phoenix Magazine “Top Divorce Law Firms”, and Arizona Foothills Magazine “Best of the Valley” award. He believes the policies and procedures he uses to get his clients through a divorce should all be guided by the principles of honesty, integrity, and actually caring about what his clients are going through in a divorce.

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Despite the unfortunate situation I found myself in, Chris Hildebrand @ Hildebrand Law helped me maneuver every step with professionalism, expertise, and even a sensitivity that was an added bonus. Chris and his staff helped me even when I didn't know I needed the help. In other words. . . they made sure we did not leave anything undone. And in the rare instance we needed the expertise of another professional, Chris knew exactly who to recommend. Chris also knew, because of his experience, what to anticipate down the road of litigation. That meant we were better prepared to meet the challenges head on, which lead to a more equitable and fair outcome. I appreciated that Chris did his best to meet my every need in a timely fashion, even if I had a simple question that required only a phone call or e-mail or if we needed to talk face-to-face. I highly recommend Chris Hildebrand @ Hildebrand Law, PC.

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I cannot express enough how thankful I am that I found Hildrebrand Law. Chris Hildebrand is an excellent attorney who has my best interests in mind and always encourages me to do the right thing regardless of what the opposing party is doing. Chris knows family law very well and relies on that knowledge to format options and solutions for each situation that may arise. He knows what the Court expects and what will and will not be tolerated. He has attempted to settle this case quickly and as inexpensively as possible from the start. His paralegal, Laura, is remarkable. She is organized, quick to respond, and compassionate. Chris is well prepared with a binder full of detailed and organized information and that is likely due to her thorough skills and expertise. While getting a divorce that was unexpected is a painful and difficult process, Chris and Laura treat my family and I like friends rather than another just "client." I am hopeful that I do not need to recommend divorce lawyers to anyone in the future but if I do, Hildebrand Law will be a recommendation I would give hands down.

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I interviewed several firms and selected Hildebrand Law for my difficult military divorce as a direct result of their whole family concern and integrity. During the interview process the professionals at Hildebrand Law were as concerned for the well being of my children as I was and ensured that they presented several options along the way to ensure that we protected my children's needs as well as my financial situation. At each decision point they laid out a clear path, how it impacted the children, the financial situation. They even reminded me that my ultimate stated goal was the best interest of my children each time the other party got particularly challenging and my frustration was getting the better of me. The owner handled my case personally and was exceptionally well versed in the unique aspects of a divorce involving the military and associated benefits. Won't need them again (fingers crossed!!! :) ) but would totally recommend them to anyone!

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We had a fairly complicated case in Family Court and Juvenile Court. Kip was an excellent attorney. He covered every base there was to cover and left no stone unturned. I would highly recommend him to anyone going through custody proceedings. Hildebrand Law is an excellent law firm and I am confident that Kip or any of their other attorneys would do an excellent job! Thanks Kip and Hildebrand Law!

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I first should comment on how I found this law firm. I am an attorney myself, though never licensed in Arizona. I moved to Arizona to rejoin my wife and son, who had moved out to Arizona ahead of me. Things soured. I don't know why, but they did.There was a particular issue for me with inherited property. I did some basic Internet research, and Hildebrand's name kept coming up as the author of scholarly articles on the issue concerning me. I asked that Hildebrand be assigned to my case. This was not possible, but his second in command, Mr. Micuda, took over, and Mr. Micuda knows his business.The initial scheduled 1 hour meeting ran for an hour and 45 minutes, and facts, law, and strategy were fully discussed. Throughout the case, everything was explained to me clearly, both verbally and in writing.Proceedings went forward without delay. Because I had selected one of the most prominent Domestic Relations firms in town, there was no serious opposition. This ended up being an essentially co-operative divorce between the two sides, the reasoning being to conserve assets rather than enrich lawyers.Through a series of 3 or 4 payments, I put up about $10,000 for fees and costs. I found the Hildebrand law firm's billings to be fair. They billed for work done; no padding. I am getting about 25% of what I paid in back, as a refund.The matter was done in about 6 months: divorce, agreed property settlement, agreed support provisions as to my son. My matters were handled by an attorney and paralegal team, and handled efficiently.Mine was not a "big" case in terms of its economic value to anyone, but I did not feel like a second or third class citizen; I was treated with the same respect, even though the dispute was over a condo, as opposed to, say, a Scottsdale mansion with land.This may sound strange, but i was actually somewhat sorry that the matter had to come to a conclusion. I felt that I had been treated like a friend, not just an anonymous customer. Being a practical man, I realize it's down to sending a Christmas or other seasonal card.As I said at the outset, I found this place by dint of my own research. I feel I am a lucky man that I did.

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This is not only a great law firm that cares about their clients but also the results they get for their clients. Great people and attorneys, I highly recommend this firm!

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Chris Hildebrand is one of the sharpest and effective attorneys that I have encountered in my 27 years of business. Doing business on the East Coast, as well as Southern California and Arizona has afforded me countless opportunities to work with legal minds from various parts of the country. Needless to say, Chris is by far one of the most honest, intelligent and street smart attorneys I have encountered. I have referred a number of people to Chris and everyone has been fully satisfied. 100% recommend him!

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HIGHLY RECOMMEND! Cannot say enough wonderful things about my experience with Hildebrand Law. I have been working with Chris and the firm for about 6 years now, and I always feel like my concerns, issues and questions are addressed in a thorough and timely manner. They definitely have my best interests at heart. I recommend Chris whenever anyone asks me who I used as my divorce attorney. Great firm and great results!

Michelle Harrington

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I hired Michael Clancy just when I was about to give up on an existing post-decree case which I started with a different attorney over a year ago. Michael is knowledgeable, upfront and personable; he gave me the confidence to continue and settle my post decree case. I knew he was secure, capable and could handle my case and represent me well. He did everything he could to ensure a great outcome for the modification of my current court orders to help my son have a more stable mental, social and physical well-being, which to me is priceless! I would highly recommend him to anyone who wants to be in the best possible hands during one of the most stressful events that could happen to any parent that wants the best for their child/children. Thank you Michael for fighting for my son's safety!! Also, his paralegal, Alison, was awesome and very helpful!

Shari Abbit

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Jerry Thompson

14:17 03 Oct 19

Very professional, kind and understanding.

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CSRS Benefits and Divorce in Arizona | Hildebrand Law, PC

Division of CSRS Retirement in a Divorce in Arizona

More Articles About Arizona Community Property Laws

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