Ryan v. Ryan

In Ryan v. Ryan, 659 N.E.2d 1088 (Ind. Ct. App. 1995), the Court of Appeals of Indiana considered a premarital agreement wherein the parties purportedly agreed that any property owned by the individual parties prior to the marriage, or which was purchased, accumulated or acquired separately during the marriage, would remain the separate property of the individual parties. The trial court in Ryan concluded that the premarital agreement further provided that the husband's separate property included his pension benefits which existed prior to the marriage, as well as those benefits which accrued during the marriage. Id. at 1094. Therefore, those pension benefits were the separate property of the husband and his wife had no claim thereto. Id. In Ryan, at the time of the parties' marriage in 1971, pension rights were not included within the definition of marital property under Indiana law. Id. In 1980, however, the Indiana legislature amended the statutory definition of property in dissolution actions to include the right to withdraw retirement or pension benefits and vested benefits. Id. (citing Ind. Code 31-1-11.5-2(d) (1993)). The wife argued that she could not have waived her spousal interest in her husband's vested retirement benefits, as her statutorily-created interest was not in existence at the time the premarital agreement was executed in 1971. Id. The Indiana Court of Appeals rejected this argument, finding that the premarital agreement made clear the parties' intention to exclude their individual assets, including pension benefits, from the definition of marital property. Id. at 1095. As the parties' intentions concerning their separate property was clear, and they acknowledged in the agreement that they would be bound by Indiana law, including a waiver of their statutory rights thereunder, the court found the wife's argument to be without merit. Id. The court also distinguished the Seventh Circuit's decision in Pedro Enters., Inc. v. Perdue, 998 F.2d 491 (7th Cir. 1993), finding that the wife in Ryan could point to no statutory requirements for the waiver of pension rights. Ryan, 659 N.E.2d at 1095; see Pedro Enters., Inc. (holding that premarital agreement did not waive surviving spouse's rights in deceased husband's pension plan where waiver did not comply with ERISA's waiver requirements).