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You can search the entire site. or go to the recent opinions, or the chronological or subject indices. Schaub v. Schaub (8/2/2013) sp-6803

Schaub v. Schaub (8/2/2013) sp-6803

         Notice:  This opinion is subject to correction before publication in the PACIFIC  REPORTER .  

         Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts,  

         303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email  

                                                                                      

         corrections@appellate.courts.state.ak.us.  



                   THE SUPREME COURT OF THE STATE OF ALASKA  



GAYLORD E. SCHAUB,                                     )  

                                                       )        Supreme Court No. S-14502  

                           Appellant,                  )  

                                                       )        Superior Court No. 3AN-92-05262 CI  

         v.                                            )          

                                                       )        O P I N I O N  

THERESA M. SCHAUB,                                     )  

                                                       )        No. 6803 - August 2, 2013  

                           Appellee.                   )  

                                                       )  



                  Appeal from the Superior Court of the State of Alaska, Third  

                                                                   

                  Judicial District, Anchorage, Sen K. Tan, Judge.  



                  Appearances:    Robert  C.  Erwin,  Robert  C.  Erwin  LLC,  

                  Anchorage,  for  Appellant.    Richard  W.  Postma,  Jr.,  Law  

                  Offices of Dan Allan & Associates, Anchorage, for Appellee.  

                                  



                  Before:      Carpeneti,   Chief   Justice,   Fabe,   Winfree,   and  

                                                                                    *  

                   Stowers, Justices, and Eastaugh, Senior Justice.    



                  CARPENETI, Chief Justice.  



I.       INTRODUCTION  



                                                          

                  A couple divorced in 1992.  The divorce decree did not divide the parties'  



property.  The man receives military retirement benefits from over 22 years of service  



                                                                 

in the United States military.  In October 2010 the woman filed a motion seeking a post- 



         *  

                   Sitting  by  assignment  made  under  article  IV,  section  11  of  the  Alaska  

Constitution and Alaska Administrative Rule 23(a).  


----------------------- Page 2-----------------------

decree equitable division of property. The man opposed, arguing that the woman's claim   



was barred by (1) the statute of limitations; (2) laches; and (3) estoppel.  The superior  



court concluded that the woman could properly bring her motion, that her motion was  



not barred by the statute of limitations, and that laches barred only the retrospective  



division of the man's retirement benefits.  The man appeals.  Because the woman's claim  



                                                                    

was not barred by the statute of limitations, and because the superior court did not abuse  



its discretion in concluding that the woman was entitled to a prospective division of  



retirement benefits, we affirm the decision of the superior court in these respects.  But  



because the court erred in setting the effective date of the property division, we remand  



with instructions to correct the effective date.  



II.	     FACTS AND PROCEEDINGS  



         A.	       Facts  



                   Gaylord  "Hank"  Schaub  and  Theresa  Schaub  married  in  May  1958  in  



                

Michigan. The parties subsequently moved to Alaska, where they separated in 1986.  



                                                                                      

Theresa moved to Florida in 1991. In June 1992, after living apart for approximately six  



                                                        

years, Hank filed a petition to dissolve the marriage.  In his petition, Hank stated that he  



                                                                                                                 

did not know where Theresa was and had made "diligent efforts" to locate her.  He also  



reported  that  he  had  "been  unable  to  find  out  [Theresa's]  position  in  regard  to  the  



dissolution  of  [the]  marriage  and  the  fair  and  just  division  of  property  (including  



retirement benefits) . . . ."  



                   In November 1992 the superior court entered a decree of dissolution of  



marriage.  The superior court's decree stated:  



                   FINDINGS OF FACT AND CONCLUSIONS OF LAW:  



                            . . . .  



                   3.	      Petitioner  has  been  unable  to  ascertain  the  other  

                                                                        

                            spouse's position in regard to the dissolution of their  



                                                           -2-	                                                    6803
  


----------------------- Page 3-----------------------

                                                                           

                              marriage and in regard to the fair and just division of  

                                                                                         

                              property, including retirement benefits . . . because the  

                              whereabouts  of  the  other  spouse  is  unknown  to  the  

                              petitioner after reasonable efforts have been made to  

                                              

                              locate the absent spouse.  



                              . . . .  



                    THEREFORE, IT IS ORDERED:  



                              . . . .  



                                                                             

                    3.	       This decree does not bar future action on the issues not  

                              resolved in this decree.    



                                                                   

                    Hank was in the United States military for over 22 years and has received  



                                                                                                   

$ 1,471.00 per month from a military pension since sometime in either 2002 or 2003.  



              

Theresa worked for the Anchorage School District for about six years, from which she  



also receives a pension.  



          B.	       Proceedings  



                    On June 14, 2010, Theresa filed a motion under Alaska Civil Rule 60(b),  



                                          

in which she sought to have the court "set aside the dissolution decree for fraud upon the  



                                                                

court."  Theresa claimed that, as a result of Hank's alleged fraud upon the court, she was  



denied her right to participate in the division of the marital estate, including a division  



of  Hank's  "significant  military  retirement  benefits."    On  September  16,  2010,  the  



                                                                                                

superior court denied Theresa's Rule 60(b) motion as untimely, but the court noted that  



                                                                                    

its decision was "limited to setting aside the judgment" and did "not address or decide  



any other grounds for relief that the parties [might] have."  



                                                                

                    On October 4, 2010, Theresa filed a motion seeking a post-decree equitable  



                                                                     1 

division of property under AS 25.24.160(a)(4).   Hank opposed this motion, contending  



          1  

                                                                                                

                    AS 25.24.160(a)(4) provides that "[i]n a judgment in an action for divorce  

                                                                                                             (continued...)  



                                                              -3-	                                                           6803  


----------------------- Page 4-----------------------

that Theresa's claim was barred by (1) the statute of limitations; (2) laches; and (3)  



estoppel.  Hank then moved for summary judgment.   



                                                                                                 

                    Superior  Court  Judge  Sen  K.  Tan  denied  Hank's  motion  for  summary  



                                                                                                        2 

judgment  on  June  28,  2011.    Citing  Van  Brocklin  v.  Van  Brocklin,    the  court  first  



determined that AS 25.24.160(a)(4) permitted Theresa's motion to divide the parties'  



                                                              

property.  The court then concluded that the statute of limitations did not bar Theresa's  



                                                                                                          

action because she had not filed a new action, but rather had sought adjudication of  



issues unresolved in the original dissolution proceedings.  Next the court found that,  



                                                                                                                  

although laches did not bar Theresa's action in its entirety, laches might bar "some . . .  



                                                                                          

of her past and future interest."  Finally, the court concluded that estoppel did not apply  



because  Theresa  had  not  made  a  misrepresentation.    The  court  then  scheduled  an  



evidentiary hearing to determine (1) Theresa's interest in Hank's military retirement; (2)  



whether laches barred Theresa's claim at all; and (3) an equitable distribution of any  



interest that Theresa had.   



                    On August 11, 2011, Judge Tan held the scheduled evidentiary hearing.  



                                                                                

The court entered its order for post-decree division of property on August 23, 2011.  The  



                                                                                                                  

court first concluded that Theresa's claim for Hank's retirement benefits prior to June 15,  



                                                                                                  

2010, the date on which Theresa filed the Rule 60(b) motion, was barred by laches.  But  



the  court  then  determined  that  Theresa  had  a  50%  interest  in  the  marital  portion  of  



                                                                                                 

Hank's retirement benefits from June 15, 2010 on, which was not barred by laches.  The  



          1  

                    (...continued)  

or  action  declaring  a  marriage  void  or  at  any  time  after  judgment,  the  court  may  

     

provide . . . for the division between the parties of their property, including retirement  

                                                        

benefits . . . ."  



          2  

                    635 P.2d 1186, 1190-91 (Alaska 1981).  



                                                              -4-                                                        6803
  


----------------------- Page 5-----------------------

superior court also divided Theresa's pension in the same manner.  Hank moved for  



reconsideration, which the superior court denied.  



                   Hank appeals.  



III.      STANDARD OF REVIEW  



                                                          

                    "We review a trial court's determination regarding the applicable statute of  



                               3  

limitations de novo."   "We review a trial court's decision to permit or deny a defense  



                                                                                           

based on the doctrine of laches for abuse of discretion and will not overturn the decision  



                                                                                                                        4  

unless we have a definite and firm conviction that a mistake has been committed."    



IV.       DISCUSSION  



                   In bringing her claim for post-judgment division of property, Theresa relied  



on AS 25.24.160(a)(4), which allows a court to divide property between the parties "[i]n  



                                                                                     

a judgment in an action for divorce or action declaring a marriage void or at any time  



                        5  

after judgment."   She sought, and the superior court ordered, a division of the parties'  



marital assets, including the parties' retirement benefits.   



                   In  Van  Brocklin,  we  considered  the  scope  of  a  precursor  statute  with  



                                                                                                    6  

                                                                                                       In that case, the  

language identical to the provision of AS 25.24.160(a) at issue here. 



                                                                                      

divorce decree did not adjudicate the property rights of the parties, because the superior  



          3  

                    Whittle v. Weber, 243 P.3d 208, 211 (Alaska 2010) (quoting                             Smallwood v.  

Cent. Peninsula Gen. Hosp.               , 151 P.3d 319, 322-23 (Alaska 2006)) (internal quotation  

marks omitted).   



          4  

                   Id.  at 211-12 (quoting  Young v. Williams, 583 P.2d 201, 204-05 (Alaska  

1978)) (internal quotation marks omitted).   



          5  

                   AS 25.24.160(a)(4) (emphasis added).  



          6  

                    Van  Brocklin,  635  P.2d  at  1190  (considering  the  scope  of  former  

AS 09.55.210).  



                                                             -5-                                                       6803
  


----------------------- Page 6-----------------------

                                                                                          7 

court believed they had been "amicably settled" by the parties.   But 17 months after the  



                                                                                                                

divorce decree the former wife moved for modification, seeking division of the parties'  



                                                                        8 

property, because no settlement had been reached.    The superior court treated the wife's  



                     

modification  requests  as  a  Rule  60(b)  motion  and  denied  it,  explaining  that  her  



                                                                                                                      9  

unreasonable delay "waived her right to seek adjudication of property issues."                                            We  



                                                                                            

disagreed and explained that considering the wife's request as a Rule 60(b) motion was  



                                                                   

error because she had a statutory right to seek a complete adjudication of property rights.  



This right was found in the precursor statute to AS 25.24.160(a)(4).  We found the  



                                                                                                    

statute to be a "specific grant of power, authorizing the superior  court to adjudicate  



                                                                                                               10 

                                                                                                                   We held  

property rights during a divorce proceeding or after entry of final judgment." 



                                                       

that where a divorce decree does not settle the parties' property rights, a court may later  



                                                                                                             11  

                                                                                                                  We then  

divide the marital property on the motion of one of the former  spouses. 



remanded for additional findings on whether the former wife's delay resulted in waiver  



                                                                                                                             12  

                                                        

or  estoppel  of  her  right  to  bring  a  post-decree  motion  for  division  of  property. 



                                                                       

                    In the present case, the November 1992 decree of dissolution of marriage  



did not resolve Hank and Theresa's property rights, and the decree further provided that  



          7  

                   Id. at 1187.  



          8  

                   Id. at 1187-88.  



          9  

                   Id. at 1189-90.   



          10  

                   Id. at 1190 (interpreting former AS 09.55.210).  



          11  

                   Id. at 1190 (noting that "such actions may be barred on other grounds, such   

as waiver or estoppel"); see also McGee v. McGee, 974 P.2d 983, 990 (Alaska 1999)  

("where a divorce decree does not settle the parties' property rights because all property  

                                              

issues  were  withdrawn  from  the  court's  consideration,  a  court  may  later  divide  the  

marital property on the motion of one of the former spouses").  



          12  

                    Van Brocklin, 635 P.2d at 1190.  



                                                             -6-                                                        6803
  


----------------------- Page 7-----------------------

it did "not bar future action on the issues not resolved in this decree."  Accordingly,       



under  AS  25.24.160(a),  Theresa  could  properly  file  a  motion  in  the  superior  court  



                

 seeking  a  division  of  the  parties'  property.    But  neither  AS  25.24.160(a)  nor  Van  



                                 

Brocklin resolves the question whether there is a limitation on the time during which a  



                                                                               

 subsequent motion to divide property must be filed.  Although in  Van Brocklin we did  



                                                                                       

not address this temporal limitation, we did note that "such actions . . . may be barred on  



                                                                                 13  

other grounds, such as waiver and estoppel."                                          Before the superior court and now on  



               

appeal, Hank contends that Theresa's claim was barred on two such other grounds:  (1)  



the statute of limitations; and (2) laches.  



                                                                                                                                      

            A.	         The Superior Court Correctly Concluded That Theresa's Claim Was  

                        Not Barred By The Statute Of Limitations.  



                        The  superior  court  concluded  that,  because  Theresa's  motion  for  post- 



judgment division of property did not constitute a new action, the statute of limitations  



did not apply.  The superior court relied on State, Department of Revenue, Child Support  



                                                                               14  

                                                                                                                       

Enforcement Division ex rel. Inman v. Dean ,                                       to conclude that the statute of limitations  



                                                                                           

applies  "only  .  .  .  when  litigants  bring  actions,  which  means  filing  complaints  to  



commence  proceedings."    Because  Theresa  sought  "only  to  adjudicate  issues  not  



                                                                                                    

addressed in the dissolution proceedings," the superior court concluded that the statute  



of limitations did not bar her claim.   



                                                                                        

                        Hank argues that Theresa's motion for post-judgment division of property  



was barred by the statute of limitations.  Hank's argument is based on our language in  



                                       

 Van Brocklin, where we characterized the issue before us as "whether a divorce decree  



                                                             

 silent as to property issues is a bar to the maintenance of an independent action involving  



            13  

                        Id.  



            14  

                        902 P.2d 1321, 1323 (Alaska 1995).   



                                                                           -7-                                                                         6803  


----------------------- Page 8-----------------------

                                         15  

the parties' property rights."                Hank concludes that Theresa's action is appropriately  



                                                          

characterized as "an independent cause of action," and as such is subject to a statute of  



                                                                   16                          17 

limitations as specified in either AS 09.10.070                        or AS 09.10.100.             Because Theresa  



did not bring her motion within ten years, Hank contends that her claim is barred under  



either statutory section.   



                   Theresa  responds  that  her  motion  was  not  barred  by  the  statute  of  



                                                         

limitations  because  (1)  she  did  not  commence  a  new  action  against  Hank;  (2)  



                                                        

AS 25.24.160(a) specifically removes her motion from the statute of limitations; and (3)  



her post-judgment motion was authorized under our retained-jurisdiction procedures.  



First,  Theresa  references  AS  09.10.010,  the  prefatory  statute  for  Alaska's  statute  of  



                                                                                                          

limitations, which provides that "[a] person may not commence  a civil action except  



                                                                            

within the periods prescribed in this chapter after the cause of action has accrued, except  



                                                                                                     18  

                                                                                                          Theresa then  

when, in special cases, a different limitation is prescribed by statute." 



contends that we have held that the term "commence" does not apply to motions filed  



                                                                              

within a previously commenced action, and therefore the statute of limitations does not  



                                   

bar her action.  Second, Theresa argues that AS 25.24.160(a), which allows post-decree  



divisions of property "any time after judgment," removes Theresa's motion from the  



              

scope of Alaska's statute of limitations.  Theresa also disputes Hank's characterization  



          15  

                    Van Brocklin, 635 P.2d at 1190  (emphasis added).  



          16  

                   AS  09.10.070(a)  provides  in  relevant  part  that  "[e]xcept  as  otherwise  

provided by law, a person may not bring an action . . . (2) for . . . injury to the rights of  

another not arising on contract and not specifically provided otherwise . . . unless the  

action is commenced within two years of the accrual of the cause of action."  



          17  

                                                                                                  

                   AS 09.10.100 provides that "[a]n action for a cause not otherwise provided  

for may be commenced within 10 years after the cause of action has accrued."  



          18  

                   AS 09.10.010 (emphasis added).  



                                                            -8-                                                      6803
  


----------------------- Page 9-----------------------

                                                          

of Van Brocklin as authorizing only an independent action.  Third, Theresa argues that,  



                                                                                                     

before the use of qualified domestic relations orders (QDROs) was commonplace, our  



                                                  

stated  preference  for  dividing  pensions  in  divorce  actions  was  for  a  court  to  retain  



                                                    

jurisdiction in order to make the actual division at a later time.  Theresa quotes at length  



                                                               19  

from our opinion in Thomas v. Thomas: 



                     In Laing we stated our preference for reserving jurisdiction  

                     as an alternative to valuing non-vested pensions at the time of  

                                                                                                    

                     trial.    Under  this  approach,  a  non-vested  pension  is  not  

                     considered  when  the  trial  court  makes  its  initial  property  

                     division at the time of the divorce.  Rather, the court reserves  

                                                                                         

                     jurisdiction  and  if  the  pension  vests,  the  non-employee  

                     spouse may seek an order dividing the pension, which will be  

                                                                                                

                     done in the same manner as it would have been if the pension  

                                                                  

                                                                                [20] 

                     was vested at the time of the divorce.                           



Because the superior court's November 1992 divorce decree stated that it did "not bar  



                                                                          

future action on the issues not resolved in this decree," Theresa argues that the court in  



                                                           

June 2011 correctly concluded that it retained jurisdiction over both Hank and Theresa's  



retirement benefits.  



                     We  agree  with  Theresa  that  the  statute  of  limitations  does  not  bar  her  



                                                                                                    

motion.  We have previously held that statutes of limitations "appl[y] when litigants  



 'bring an action' and thus govern[] only proceedings commenced by the filing of a  



                   21 

                                                        

complaint."            In the present case, Theresa did not bring an action, but rather filed a  



motion  to further adjudicate an already existing action - thus, her motion was not  



subject   to   the   statute   of   limitations.      This   conclusion   is   also   consistent   with  



           19  

                     815 P.2d 374, 375-76 (Alaska 1991).  



           20  

                     Id. (citing Laing v. Laing , 741 P.2d 649, 658 (Alaska 1987)).  



           21  

                     State, Dep't of Revenue, Child Support Enforcement Div. ex rel. Inman v.   

Dean , 902 P.2d 1321, 1323 (Alaska 1995).  



                                                                  -9-                                                           6803
  


----------------------- Page 10-----------------------

AS 25.24.160(a)(4), which specifically allows post-decree divisions of property "any  



                                                                                           

time after judgment," as well as with our historical preference that a superior court retain  



                                                                                 22  

jurisdiction pending the vesting of retirement benefits. 



                                             

                    Further, Hank's argument that Theresa's motion is an independent cause  



                

of action, and thus the statute of limitations should apply, is unconvincing.  In support  



of  this  argument,  Hank  solely  relies  on  our  language  in  Van  Brocklin,  where  we  



characterized the relevant legal question before us as "whether a divorce decree silent as  



to property issues is a bar to the maintenance of an independent action involving the  



                                    23  

parties' property rights."               But our characterization in Van Brocklin of a post-judgment  



                                                                                                                      

                  

motion for division of property as an "independent action" was not necessary for our  



                                                                                                           

resolution of the legal question at issue, and nowhere in  Van Brocklin did we discuss  



                                                                                                            24  

how our holding related to the statute of limitations, or if it related at all.                                  Moreover,  



                   

the moving party in  Van Brocklin had not brought an "independent action" at all, but  



                                                                    25 

                                                                                                                       

rather a motion seeking a division of property.                          Further, as Theresa points out, our use  



                                                                               

of the term "independent action" in  Van Brocklin is in tension with our later statement  



                               26  

                                                                                                                      

in McGee v. McGee ,               where we correctly noted that we "held in  Van Brocklin . . . that  



                                                                                                                   

where a divorce decree does not settle the parties' property rights . . .  a court may later  



          22  

                    See Thomas, 815 P.2d at 375-76.  



          23  

                    Van  Brocklin  v.  Van  Brocklin,  635  P.2d  1186,  1190  (Alaska  1981)  

(emphasis added).  



          24  

                    See id.   



          25  

                    Id. at 1187-88.  



          26  

                    974 P.2d 983 (Alaska 1999).   



                                                             -10-                                                        6803
  


----------------------- Page 11-----------------------

                                                                                                                               27 

divide the marital property                      on the  motion  of one of the former spouses."                                     We therefore  



affirm the superior court's conclusion that Theresa's action was not barred by the statute   



of limitations.  



            B.	         The Superior Court Did Not Abuse Its Discretion When It Concluded     

                        That Laches Did Not Bar Theresa's Entire Claim, But It Was Error   

                        To Divide The Pensions Before The Date Of The Hearing.  



                        The superior court concluded that laches barred Theresa's motion for post-    



judgment division of property only in part.   In so concluding, the court determined that  



there were three relevant time periods to consider:  (1) the period from the date when   



Hank began receiving retirement benefits through the date on which Theresa filed her  



                                                                                                                                               

Rule 60(b) motion (June 15, 2010); (2) the period from June 15, 2010, through the date  



on which Theresa filed her motion for a post-judgment division of property (October 4,  



2010);  and  (3)  the  period  from  October  4,  2010,  forward.    Regarding  the  first  time  



                                                                                                                                              

period, the court found that Theresa's claim was barred by laches because her delay in  



bringing the motion was unreasonable on two grounds:  (1) because she was aware of  



                                                                                                                     

the divorce and knew that she had a claim for a portion of Hank's retirement, and (2) any  



                                                                                                                            

award prior to June 15, 2010, would result in prejudice to Hank, as he had "already spent  



                                                                                                            

that income."  Regarding the second time period, the court found that Theresa's claim  



was not barred by laches because Theresa's Rule 60(b) motion sufficiently put Hank on  



                                                                                                

notice that she sought a division of property. Finally, regarding the third time period, the  



                                                                                                                          

court found that Theresa's claim was not barred by laches because Hank would not be  



                                        

prejudiced by having to prospectively pay Theresa her portion of his retirement income.  



                         1.	        Laches does not bar the entire claim.  



                                                                                        

                        Hank argues that the superior court abused its discretion when it concluded  



                                                                                                  

that Theresa's claim was not barred entirely by laches.  Hank contends that laches "is not  



            27  

                        Id. at 990 (emphasis added).     



                                                                          -11-                                                                          6803  


----------------------- Page 12-----------------------

a partial defense" and "goes to assertion of the entire claim."  He also points out that  



Theresa's "claim was for one half of all the marital property, not portions of it."  In  



particular, Hank contends that Theresa was aware of her right to a portion of Hank's  



                                                             

retirement income in 1986, at the time of their separation, yet failed to act until 2010.  



                                                     

Hank also asserts that he has a heart condition and has planned his retirement based on  



                                                                                                   

his expectation of receiving the full amount of his retirement benefits. In the alternative,  



Hank contends  that  the superior court abused its discretion when it determined that  



                                                                                                  

laches barred Theresa's action only up until June 15, 2010, the date on which Theresa  



filed her Rule 60(b) motion to set aside the dissolution decree.  Hank characterizes the  



                                                                                    

court's choice of June 15, 2010,  as "completely arbitrary" because, he asserts, the Rule  



                                                                                                           

60(b) motion was relevant only to the validity of the dissolution, not to  division of  



property, and was ultimately denied.  



                   Theresa disputes Hank's contention that laches is not a partial defense.  



                                                    

Specifically, she contends that each retirement payment that Hank has received should  



be examined separately to determine whether Theresa's delay triggers laches.  In support  



                                                                                                         28 

                                                                                                             where we  

of this argument, Theresa cites our opinion in Bibo v. Jeffrey's Restaurant ,  



concluded that laches barred only part of a plaintiff's claim, and that each payment  



wrongfully  received  by  the  defendants  should  be  analyzed  separately  to  determine  



                                 29  

whether laches applied.               Further, Theresa points out that other jurisdictions, including  



                                  30 

                                                                        

Arizona and California,              have adopted a similar rule in the context of post-judgment  



division of military retirement benefits.  These jurisdictions, Theresa contends, have  



         28  

                   770 P.2d 290 (Alaska 1989).  



         29  

                   Id. at 294.  



         30  

                   Flynn v. Rogers , 834 P.2d 148 (Ariz. 1992);                 Hill v. Hattrem , 117 Cal. App.  

3d 569 (Cal. App. 1981).  



                                                          -12-                                                     6803
  


----------------------- Page 13-----------------------

                                                                                             

allowed for the prospective division of benefits from the time the former spouse sought  



                31  

a division. 



                    Laches is an equitable defense arising from one party's unreasonable delay  



                                                                   32  

                                                                                                                    

in seeking relief that prejudices another party.                        "The essence of laches is not merely the  



                                    

lapse of time, but also a lack of diligence in seeking a remedy, or acquiescence in the  



                                                                      33  

                                                                                                 

alleged wrong and prejudice to the defendant."                            Having raised the affirmative defense  



                                                                             

of laches, Hank bore the burden of demonstrating both unreasonable delay and undue  



               34  

prejudice. 



                                                                                                    

                    First, we agree with Theresa that our opinion in Bibo resolves the question  



of whether laches must bar Theresa's claim in its entirety.  In that case, Bibo, a minority  



shareholder in a corporation, brought suit against the majority shareholders, claiming that  



they "caused the corporation to engage in various transactions which benefitted [the  



          31  

                    Theresa   also   argues   that   her   delay   in   seeking   relief   was   neither  

unreasonable nor prejudicial to Hank, and she contends that it was error for the superior  

                                                                                                                 

court not to choose a date earlier than June 15, 2010, as the date after which Theresa's  

claim was not barred by laches.  Because Theresa did not file a cross-appeal in the  

present case, however, we decline to address this argument.  See Peterson v. Ek, 93 P.3d  

                                         

458, 467 (Alaska 2004) (holding failure to file a cross-appeal waives the right to contest  

                                                                                                                     

rulings below).   



          32  

                                                

                    Bibo , 770 P.2d at 293 (citing Wolff v. Arctic Bowl, Inc., 560 P.2d 758, 767  

(Alaska 1977)) (internal quotation marks omitted).   



          33  

                    Wolff, 560 P.2d at 767 (citing S. Pac. Co. v. Bogert, 250 U.S. 483, 488-89  

(1919)) (internal quotation marks omitted).  



          34  

                                                                                                               

                    See Laverty v. Alaska R.R. Corp., 13 P.3d 725, 731 (Alaska 2000) (citing  

                                                                                                                

Winn v. Mannhalter, 708 P.2d 444, 450 (Alaska 1985)).  In his reply brief, Hank argues  

                                                 

that "[t]he trial court placed no burden on Theresa to establish lack of prejudice . . . ."  

                                                                                                              

But  this  statement  misconstrues  the  relevant  burdens.  As  the  party  asserting  the  

                                   

affirmative defense of laches, Hank bore the burden of demonstrating both elements of  

the defense.  



                                                              -13-                                                         6803
  


----------------------- Page 14-----------------------

                                                                                                35 

majority shareholders] to the prejudice of the corporation and Bibo."                                Among various  



forms of relief, Bibo requested a proportionate share of the benefits that the majority  



                                                                                                                36  

shareholders had bestowed upon themselves in the form of dividend payments.                                          The  



majority shareholders sought dismissal based on laches, and we concluded that  



                                              

                   a complete bar on the basis of laches is inappropriate.  Each  

                   excessive payment is a separate wrongful act.  As to each  

                   payment, it is correct to ask what is the last day on which a  

                                                                                         

                   suit to seek damages for the excess could reasonably have  

                   been brought.  The answer to this question is properly left to  

                   the sound discretion of the trial court. However, not all of the  

                                                                                       

                   payments will be excluded for some of them were apparently  

                   made nearly contemporaneously with the filing of the suit.[37] 



Thus, at least as a matter of law, Hank is incorrect that laches must go "to assertion of  

                                                



the entire claim."  



                   2.	      It was error to divide retirement benefits that no longer existed  

                            because they had been expended for normal living expenses.  



                   Hank contends that the superior court's decision to divide his retirement  



benefits beginning June 15, 2010, the day that Theresa filed her Rule 60(b) motion, was  

                                                                  



"completely arbitrary and ignore[d] the claim [being] made."  In its order, the superior  

                                                                                                 



court noted that, although Theresa's Rule 60(b) motion was "not the proper motion to  

                                      



file regarding the retirement benefits, [it] adequately put [Hank] on notice of her claim."  



                                           

Therefore,  the  claim  was  no  longer  barred  by  laches.    Hank  contends  that,  because  



Theresa's Rule 60(b) motion sought to set aside the divorce decree, not to distribute  



                                                                         

property, it could not serve as the date on which  prospective division would begin.  



         35  

                   Bibo , 770 P.2d at 291.  



         36  

                   Id. at 292.   



         37  

                   Id. at 294.  



                                                          -14-                                                        6803  


----------------------- Page 15-----------------------

Based on Theresa's motion and the superior court's express recognition in the initial  



                                              

divorce decree that it did not bar future action on issues not resolved in the decree, the  



superior  court  could  conclude  that  after  June  15,  2010,  Hank  knew  or  should  have  



known that the marital estate might have to be divided.  



                                                                            

                    However,  Hank's  argument  is  in  part  that  he  had  already  spent  the  



retirement benefits.  We have recognized that assets that no longer exist at the time of  



                                                                                             38 

                                                                                                 we held that "[i]f assets  

trial are normally not available for distribution.  In Cox v. Cox 



                                                                                                                                 39  

                                                            

no longer exist or are not owned by the parties, they are not available for distribution." 



                                                      40  

                                                                                                                 

Similarly, in Partridge v. Partridge                      we explained that "[m]arital assets that are spent  



                                                                                  

after separation for . . . normal living expenses are not typically taken into account in the  



                                     41  

final property division." 



                               

                    Here,  the  superior  court  acknowledged  that  Hank  may  have  spent  the  



                                                                                                                     

retirement  benefits  he  received  between  June  15,  2010,  and  October  4,  2010,  but  



                                                     

nonetheless held that Theresa was entitled to half of the marital portion of the retirement  



benefits.  This was error.  Retirement benefits expended for normal living expenses  



                                                                           

during the period of June 15, 2010, until the trial (or hearing) are no longer available for  



                                                                                                                    

division.   Division of each party's retirement benefits must begin on the date of the  



hearing concerning the division of the property: August 11, 2011.  



          38  

                     882 P.2d 909 (Alaska 1994).  



          39  

                    Id. at 918 n.5.  



          40  

                    239 P.3d 680, 692 (Alaska 2010).  



          41  

                    Partridge , 239 P.3d at 692 (citing                 Jones v. Jones , 942 1133, 1139 (Alaska     

1997)).  



                                                               -15-                                                         6803
  


----------------------- Page 16-----------------------

                    3.       Laches does not bar a prospective award.  



                    The  superior  court  did  not  abuse  its  discretion  when  it  concluded  that  



                                       

Theresa was entitled to a prospective award of Hank's retirement benefits.  While we  



                                                     

have not previously addressed this precise issue, at least three other jurisdictions have  



concluded that a former spouse would be entitled to a prospective award of military  



                                                                              42                          43 

retirement benefits, despite a delay in seeking relief.     Beltran v. Razo                                   and Hill v.  



            44  

                                                          

Hattrem         are persuasive authority on this point.  In Beltran , a former wife brought a  



motion to divide the former husband's military retirement benefits over seven years after  



                                                         45  

entry  of  the  original  divorce  decree.                     After  the  trial  court  denied  the  wife  any  



                                                  

prospective award of retirement benefits, the Court of Appeals of Arizona reversed,  



                                                                

holding that "the court may deny complete retroactivity and then proceed to divide the  



                                                                 46  

                                                                      In Hill , a former wife brought a motion  

                                                                                               

funds from the date of the petition to divide." 



to divide the former husband's military retirement benefits approximately ten years after  



                                        47  

                                                                                                          

entry of the divorce decree.                 The California Court of Appeal held that the "wife may  



          42  

                   See  Beltran  v.  Razo,  788   P.2d  1256,  1258  (Ariz.  App.  1990);  Hill  v.  

Hattrem , 172 Cal. Rptr. 806, 807 (Cal. App. 1981);                         Berry v. Meadows , 713 P.2d 1017,  

1026 (N.M. App. 1986).  



          43  

                    788 P.2d 1256.   



          44  

                    172 Cal. Rptr. 806.  



          45  

                    788 P.2d at 1257.   



          46  

                                                                         

                   Id. at 1257-58.  In Flynn v. Rogers , the Arizona Supreme Court appeared  

to cite with approval the court of appeals' holding in Beltran . Flynn v. Rogers , 834 P.2d  

148, 152 (Ariz. 1992).  The holding in Beltran , however, was not properly before the  

court, as the issue had been abandoned on appeal.  Id. at 150.   



          47  

                    172 Cal. Rptr. at 807.   



                                                            -16-                                                       6803
  


----------------------- Page 17-----------------------

recover, as a matter of law, that portion [of the military pension] payable after [the]  



                                                                  48  

husband received notice of her claim . . . ."                          



                    We are in general agreement with the holdings of these jurisdictions.  In the  

                                                                                                                            



present case, there was no dispute that Hank's retirement benefits were marital property.  



                      

Accordingly, Theresa had the right to bring an action to divide the property "at any  



         49 

              Although she waited nearly 20 years after the divorce, Theresa's delay was not  

time."                                                                        



so unreasonably prejudicial to Hank's future financial planning so as to bar her claim in  

                                                                                                              



its  entirety.        Further,  Hank  will  not  suffer  prejudice  from  a  prospective  award  of  

                                                                                                                      



retirement  benefits,  as  he  may  no  longer  reasonably  treat  such  benefits  as  his  own  



                                                                                                        

separate property.  Rather, as the superior court noted, "it would be greater prejudice to  



deny [Theresa] her share of the retirement."  



                                                                 50  

                                                                                

                    Hank relies on Foster v. State                  for the proposition that laches should have  



            

barred Theresa's claim in its entirety.  This argument is unconvincing.  In Foster , we  



                                                                   

affirmed the superior court's application of laches to bar a property claim filed five years  



                                                                                            

after the plaintiff actually learned of a foreclosure judgment and deed and over 30 years  



                                                                                      51  

after those documents had been a matter of public record.                                 But, unlike the present case,  



                                                                                    52  

the plaintiff in Foster sought only retrospective relief.                                Further, Hank's reliance on  



          48  

                    Id. ; see also Berry v. Meadows, 713 P.2d 1017, 1026 (N.M. App. 1986)   

("[n]either laches nor waiver bar[red] wife's right to recover a portion of retirement   

benefits paid subsequent to filing of [the] suit . . . .").  



          49  

                    AS 25.24.160(a).   



          50  

                    752 P.2d 459 (Alaska 1988).   



          51  

                    Id. at 465-66.   



          52  

                    Id. at 464-65.  



                                                               -17-                                                         6803
  


----------------------- Page 18-----------------------

                                53                                     54 

Sandoval  v.  Sandoval              and  Morgan  v.  Morgan                is  unavailing,  as  each  case  is  



distinguishable:  Each  case  concerned  a  motion  seeking  relief  from  judgment  under  



                                                                                                         55  

Alaska Civil Rule 60(b), and neither case involved the application of laches.                                    



V.       CONCLUSION  



                                                             

                  Because Theresa's claim was not barred by the statute of limitations, and  



because the superior court did not abuse its discretion in concluding that Theresa was  



                                                                                           

entitled to a prospective division of military retirement benefits we AFFIRM the decision  



                                                                                                        

of the superior court in these respects.  We VACATE the determination that the division  



of pension benefits commences on June 15, 2010, and REMAND with directions that  



such benefits be divided as of August 11, 2011.  



         53  

                  915 P.2d 1222 (Alaska 1996).   



         54  

                   143 P.3d 975 (Alaska 2006).   



         55  

                  Sandoval, 915 P.2d at 1222-24; Morgan , 143 P.3d at 975-77.   



                                                         -18-                                                      6803  

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