Relocation Allowances for Employee Separated From Wife

An Internal Revenue Service (IRS) employee was transferred to a new duty station and was reimbursed expenses authorized in connection with that transfer. Subsequent to those payments, IRS became aware that the claimant and his wife had separated. His wife filed for divorce and the parties entered into a separation agreement on the same day. A temporary court order was issued which adopted the agreement and awarded custody of the children to the wife. It also provided for division of household goods and directed the claimant to pay to his wife half of the equity received upon the sale of their jointly owned residence. The issues presented are whether the claimant should have been reimbursed for: (1) the transportation and temporary storage of his wife's share of the household goods; (2) temporary quarters expenses for his wife and children; and (3) the full expenses of selling the parties' home. GAO held that a transferred employee, separated from his wife prior to change of duty station, is not entitled to full reimbursement of expenses incurred in the sale of a jointly owned residence at the old duty station; for full reimbursement, the title to the residence must be held solely by the employee or with a member of the employee's immediate family. Since his wife was not a member of the employee's household at the time he reported to his new duty station, she was not a member of the employee's immediate family. The employee's wife and children moved to a new location at the time the employee reported to his new duty station. He is not entitled to reimbursement for transportation and temporary storage of his wife's portion of household goods or for temporary quarters subsistence expenses of the wife and children since they were not members of his immediate family. Reimbursement may be made for transportation of household goods only if they belong to the employee or a member of his immediate family at the time shipment or storage begins, and temporary quarters subsistence expenses may be reimbursed only if incurred by the employee or a member of his immediate family. Accordingly, action should be taken to collect the excess payments from the claimant.