Koelsch Payment

Where the employee spouse continues to work past retirement age, and the non-employee spouse, therefore, does not begin receiving pension payments as a result of the employee spouse’s decision to keep working, the Court can require the employee spouse to make payment to the non-employee spouse. This requires (1) that the pension/retirement benefits are mature, and (2) that the Decree must either allow for these payments or have reserved jurisdiction for the Court to make this determination. Koelsch refers to the Arizona Supreme Court case which announced that these payments were allowed. These payments are also sometimes called indemnification payments.