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ATTORNEYS FOR APPELLANT Malcolm S. Gwinn Toby D. Shaw II Evansville, Indiana

ATTORNEY FOR APPELLEE Michael C. Keating Evansville, Indiana

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In the

Indiana Supreme Court
_________________________________ No. 82S01-0511-CV-597 TERRY SEVERS, Appellant (Petitioner below), v. MARJORIE SEVERS, Appellee (Respondent below). _________________________________ Appeal from the Vanderburgh Superior Court, No. 82D04-0301-DR-0060 The Honorable William H. Stephens, Senior Judge _________________________________ On Petition To Transfer from the Indiana Court of Appeals, No. 82A01-0312-CV-469 _________________________________ November 22, 2005 Boehm, Justice. We hold that future disability income is a divisible marital asset in a dissolution only if the benefits are contractual rights of the beneficiary and were voluntarily purchased with marital assets. Payroll taxes do not constitute voluntary payments for this purpose. We also hold that the antiassignment provision of the Social Security Act prevents state courts from assigning social security benefits in a dissolution decree.

Facts and Procedural History Terry and Marjorie Severs were married in 1977, and a decree of dissolution was entered in August 2003. In 2002 Terry suffered a heart attack and became eligible for social security disability benefits. He also received VA disability benefits as a result of his exposure to Agent Orange in the Vietnam War. In its final order the trial court determined that Terry's VA disability benefits were not marital assets, but that his social security disability payments were marital property. Marjorie was awarded forty percent of Terry's future social security disability payments. The Court of Appeals reversed. Severs v. Severs, 813 N.E.2d 812, 813 (Ind. Ct. App. 2004). We now grant transfer to address the inconsistency between the decision of the Court of Appeals and an earlier Court of Appeals decision. For the reasons stated below, we agree with the Court of Appeals in this case. Marital Property In an action for dissolution of marriage the trial court is required to divide the marital property in a "just and reasonable manner." Indiana Code

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Indiana Law