In Re Marriage of Sonne

Both husband and wife appeal from the trial court’s decision dividing their interests in husband’s California Public Employees’ Retirement System (PERS) retirement allowance and survivor benefit. Husband’s first contention is that the trial court abused its discretion in concluding that reacquired service credit for husband’s years of service to his employer prior to his marriage to wife was community property. The opportunity to reacquire this service credit arose when husband’s previous spouse withdrew the retirement contributions and interest in her portion of husband’s PERS retirement account. This service credit was reacquired by redepositing the contributions and interest using community funds during the marriage. Husband maintains that this service credit was his separate property, and the community was merely entitled to a pro tanto interest. Husband’s second contention is that the trial court abused its discretion in assigning to wife the entire survivor benefit, of which she was the irrevocable beneficiary, in exchange for her reimbursing husband for the monthly cost (a reduction in husband’s retirement allowance) of the survivor benefit. The value of the…