In Re the Marriage of Maricle

Opinion

GILBERT, J.

Parties represented by counsel in a marital dissolution action entered into an oral agreement to divide certain community property. The parties did not inform their attorneys. Here we hold that the trial court should not enforce such an agreement merely because it was made. We reverse.

Facts

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The parties were married in June of 1963. Husband filed a petition to dissolve the marriage in November of 1983, and the court acquired jurisdiction over wife on January 9, 1984. The action was tried in February of 1988.

Both parties worked for the federal government, and each had a civil service pension plan. At the time of trial, husband had over 30 years and

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wife had over 28 years of continuous federal civil service employment. Husband’s salary at the time of trial was $50,150, and wife’s salary was $32,600.

Early in 1984, while the action was pending and while both parties were represented by attorneys, husband and wife entered into an oral agreement. They decided to divide a portion of their community assets and obligations,

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but they did not tell their attorneys. They agreed that the family residence would be sold and wife would receive all of the proceeds. With the proceeds wife would pay approximately $15,000 in community debt and use the remainder to purchase a mobilehome to live in. Husband would keep all of his pension plan, and wife would keep all of hers. The terms of the agreement were performed in 1984.

It was at trial, more than three years later, when the attorneys first learned of the agreement. The court found that the parties had entered into the agreement without fraud, oppression or undue influence, and that the community interest in the residence and the parties’ respective pension plans had been divided by the fully executed oral agreement. Over wife’s objection the court confirmed that the interests divided were the separate property of the parties.