Comments on: Continental charges pilots with sham divorces https://www.overlawyered.com/2009/05/continental-charges-pilots-with-sham-divorces/ Chronicling the high cost of our legal system Fri, 29 May 2009 16:08:36 +0000 hourly 1 By: Robert https://www.overlawyered.com/2009/05/continental-charges-pilots-with-sham-divorces/comment-page-1/#comment-49447 Fri, 29 May 2009 16:08:36 +0000 http://overlawyered.com/?p=11429#comment-49447 Maybe we need a Defense of Divorce act that defines what a divorce is!

]]> By: VMS https://www.overlawyered.com/2009/05/continental-charges-pilots-with-sham-divorces/comment-page-1/#comment-49427 Fri, 29 May 2009 10:39:01 +0000 http://overlawyered.com/?p=11429#comment-49427 Sounds like a major tangled web, which will lead to more litigation, brought about by the screwed up nature of our tax laws . One of the problems that I see is that federal courts lack the jurisdiction to declare a state judgment of divorce a sham, and I’m sure that Continental lacks standing to intervene to vacate the state judgments of divorce.

The pilots will no doubt will sue Continental under ERISA, and eventually the litigation costs (including time spent) will consume a good chunk of the tax savings or pension fund preservation. In other words all will lose, but some will lose more than others.

Way back when (1960’s-70’s), before Congress fixed the tax loophole, there was a rather wealthycouple who divorced at the end of December every year, thereby saving the “marriage penalty,” and used their savings to take a vacation where they “reconciled” and remarried on January 1st.

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