How does the terminable interest rule apply to a spouse's interest in a pension plan?

California, United States of America


The following excerpt is from Bowman v. Bowman, 171 Cal.App.3d 148, 217 Cal.Rptr. 174 (Cal. App. 1985):

The terminable interest rule was never intended to deprive a nonemployed spouse compensation for his or her spouse's interest in a pension plan. The [171 Cal.App.3d 156] Waite court 7 suggested other remedies when the terms of the plan prohibited the unemployed spouse from enjoying full equality. "Thus a spouse suffers no injury when the court, in effectuating the purposes of the pension program, awards the employee more than half the actuarial value of the pension rights; the court, if it sees fit, may compensate the spouse by an award of more than half the value of some other community asset." (Waite v. Waite, supra, 6 Cal.3d 461, 474, 99 Cal.Rptr. 325, 492 P.2d 13.)

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