Barbara W. Kruger, Plaintiff-Respondent v. Richard O. Kruger, Defendant-Appellant

Summary

The Supreme Court of New Jersey held that federal military retirement pay and disability benefits, once all conditions precedent are satisfied, are property legally and beneficially acquired during marriage and therefore subject to equitable distribution. The Court modified the Appellate Division’s apportionment by rejecting the view that the benefits terminate upon the wife’s death and remanded for consideration of the tax impact. The judgment of the Appellate Division was affirmed in modified form. Justice Pashman dissented, arguing that the benefits are income, not property, and should not be divided.