CO sues pilots getting sham divorces
May 22, 2009, 12:37 pm
#1
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CO sues pilots getting sham divorces
http://www.usatoday.com/travel/fligh...rce-sham_N.htm
Several pilots made out with 10mn+ in retirement money for their wives by fililng for divorce, collecting the money, only to remarry later.
Doobie or someone more qualified than I can chime in on the specifics of how the retirement benefits work.
Most surprising thing is that one of the pilots caught was rehired after promising to pay back the money. Also interesting it is not a fraud/criminal case, presumably because the language was not clear.
Several pilots made out with 10mn+ in retirement money for their wives by fililng for divorce, collecting the money, only to remarry later.
Doobie or someone more qualified than I can chime in on the specifics of how the retirement benefits work.
Most surprising thing is that one of the pilots caught was rehired after promising to pay back the money. Also interesting it is not a fraud/criminal case, presumably because the language was not clear.
May 22, 2009, 12:40 pm
#2
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I saw this a bit ago. I'd imagine it has something to do with in divorce court the 'retirement' being an asset and paid out to the wife while the pilot 'labors on daily', but I don't know for a fact.
Clearly the pilot that worked out a repayment plan wanted to keep his job and thought this the best means, admit wrong and repay the amount(in the end it was his, but just gotten prior to retirement, and probably with less paid in than would have been at true retirement)
Clearly the pilot that worked out a repayment plan wanted to keep his job and thought this the best means, admit wrong and repay the amount(in the end it was his, but just gotten prior to retirement, and probably with less paid in than would have been at true retirement)
May 22, 2009, 12:49 pm
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Interesting strategy to tap into the pension before the pension is no longer offered as a benefit.
May 22, 2009, 1:03 pm
#4
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Strategy???
It also mentions that the one pilot who made an agreement to pay it back, ultimately did not. One would think that would probably be a "career altering event".
Last edited by xzh445; May 22, 2009 at 1:03 pm Reason: sp
May 22, 2009, 2:40 pm
#5
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Since it's "OK" for airlines to use bankruptcy court (and the threat of bankruptcy) to get out of obligations (including pension) I don't see a problem when employees figure out how to use divorce courts in a similar way.
May 22, 2009, 3:07 pm
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May 22, 2009, 3:12 pm
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May 23, 2009, 5:06 am
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Divorce and remarrying one's ex happens all the time, right? 
Maybe they should have just 'shacked up'. Oh well, illegal is illegal.
Maybe they should have just 'shacked up'. Oh well, illegal is illegal.
May 23, 2009, 9:09 am
#9
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Further testimony to the "sanctity of marriage"!
May 23, 2009, 5:47 pm
#10
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To sum up: In case of divorce, the pilot's pension is considered an asset. The pilot agrees to give the pension to the non-pilot spouse. The trick is that in this case, the spouse can get the cash value immediately. Normally it can't be cashed out until retirement.
So they get a paper divorce, cash out, and remarry. Continental's charge is that the divorces are shams only to get the money early. It's in the same class as getting "married" to get a green card.
So they get a paper divorce, cash out, and remarry. Continental's charge is that the divorces are shams only to get the money early. It's in the same class as getting "married" to get a green card.
May 23, 2009, 9:38 pm
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To sum up: In case of divorce, the pilot's pension is considered an asset. The pilot agrees to give the pension to the non-pilot spouse. The trick is that in this case, the spouse can get the cash value immediately. Normally it can't be cashed out until retirement.
So they get a paper divorce, cash out, and remarry. Continental's charge is that the divorces are shams only to get the money early. It's in the same class as getting "married" to get a green card.
So they get a paper divorce, cash out, and remarry. Continental's charge is that the divorces are shams only to get the money early. It's in the same class as getting "married" to get a green card.
May 28, 2009, 11:24 am
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http://www.chron.com/disp/story.mpl/...s/6444357.html
A couple of the pilots are claiming that CO's probe was an invasion of their privacy, stating that CO cannot make decisions on what is and is not a divorce.
It's a poorly written article IMO, but I'm no writer.
A couple of the pilots are claiming that CO's probe was an invasion of their privacy, stating that CO cannot make decisions on what is and is not a divorce.
It's a poorly written article IMO, but I'm no writer.
May 28, 2009, 1:34 pm
#14
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I found it pretty interesting that friends and family didn't know about the divorces in question. Any of you here get divorced and conveniently forget to mention it to your friends and family? 
May 28, 2009, 3:04 pm
#15
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Not a lawyer, but I understand there is that part to the equation as well.
DRW