Whorrall v. Whorrall

Richard Whorrall (plaintiff) worked for his employer for 21 years before he married Ilene Whorrall (defendant). Richard was married to Ilene for five and a half years while Richard was employed. At Richard’s retirement, his employer provided him with a retirement package and also a special $75,000 payment that was to be paid over three years. At the time Richard and Ilene divorced, Richard had received $5,300 of the special payment and was to receive $43,751.40 in the future. At trial, the personnel-administration manager of Richard’s employer testified that the special payment was given to Richard because Richard’s position had recently become unproductive to the company and was being eliminated. The special payment was an incentive for Richard to retire early so the company could redistribute manpower in a manner that was more effective to the company. The special payments were rare, discretionary, and not offered company-wide to other employees. The district court held that because the special payment was awarded to Richard at the time of his retirement during Richard’s marriage to Ilene, the entire special payment was community property. The district court therefore awarded Richard and Ilene one-half of the payments Richard had received and one-half of the future payments. Richard appealed, arguing that the special payments were separate property because they were awarded to Richard based on Richard’s prior years of service with the company, which occurred substantially before his marriage to Ilene.