## Facts

- Leonard L. Webster (husband) and Susan K. Webster (wife) married in 1983; Leonard filed for dissolution in 2003.
- Leonard worked for the Omaha Public Power District and voluntarily retired during the dissolution proceedings in 2004; his pension was in pay status and paid monthly benefits.
- Leonard did not contribute to Social Security through his OPPD employment; Susan, a public school teacher, participated in her retirement system and contributed to Social Security.
- The parties stipulated to determining the marital portion of each pension using a coverture fraction (months of service during marriage / total months of service).
- The district court divided property by awarding each spouse 50% of the marital portion of the other’s pension, to be implemented through QDROs; no alimony was awarded.
- Leonard appealed, arguing (1) the pension division should be adjusted because Susan would receive benefits from his pension immediately while he would receive none from hers until her retirement, and (2) the division should be offset to account for Social Security disparities.

## Issues

1. Whether the district court abused its discretion by declining to adjust pension division to account for disparate timing caused by Leonard’s already-in-pay-status pension and Susan’s not-yet-payable pension.
2. Whether the court was required (or permitted) to offset the marital property division based on one spouse’s Social Security entitlements or the other spouse’s nonparticipation in Social Security due to employment in a public pension system.

## Decision

- The Nebraska Supreme Court affirmed the dissolution decree’s property division.
- The court held there was no abuse of discretion in awarding each spouse 50% of the marital portion of the other’s pension under the stipulated coverture-fraction method, without any timing adjustment.
- The court held no offset or compensation may be awarded in the property division to account for Social Security benefits or for a spouse’s lack of Social Security participation due to a public pension earned “in lieu of” Social Security.

## Legal Principles

- Trial courts have broad discretion in equitable division of marital property; appellate review is for abuse of discretion.
- Retirement benefits earned during marriage are marital property to the extent of the marital portion, which may be determined using a coverture fraction.
- A court may divide pension benefits by awarding each spouse a percentage of the marital portion payable when benefits are paid, commonly through QDROs.
- A voluntary decision to retire during dissolution proceedings does not require the court to equalize pension payment timing between spouses.
- Social Security benefits are not marital property subject to division, and a court may not indirectly treat Social Security as divisible property by using an offset in the property distribution.

## Conclusion

The court upheld a straightforward equal division of the marital portion of each spouse’s pension under the parties’ stipulated coverture-fraction approach, refused to adjust for timing differences resulting from the husband’s voluntary early retirement, and rejected any Social Security-based offset in the marital property division.


Webster v. Webster, 271 Neb. 788, 716 N.W.2d 47 (Neb. 2006)