Many couples who are divorcing ask the court for spousal pensions to cover their future expenses.
Receiving this pension is not uncommon, but it is also not simple, as numerous factors affect the percentage of pension you will receive from your spouse. Contact The Harris Firm to briefly understand this topic. Till then, read this post to get a glance at how the pension is divided in divorce.
How Is Pension Undertaken In Divorce?
Pension is considered a joint asset in divorce in which the employer takes a portion of your earnings and transfers it into a fund for the future. In most cases, the funds earned before marriage remain private property, whereas the funds you earned after marriage will be considered as a joint asset. The joint assets are subject to division after divorce.
How Is Spouse’s Pension Divided After Divorce?
The division of pension in divorce is dependent upon the laws in the state where you reside.
While most couples think the pension is divided on a 50/50 basis after divorce, this is not always the case. The court takes into account various factors, including the length of the marriage and the health condition of the spouse, etc., before deciding the percentage of division.
Furthermore, if you earned your funds before marriage, then your pension will be considered separate property, and it will not be divided in any case. Also, you are likely to receive 50% or less of your spouse’s pension in most cases, and in some states where other assets become incapable of affecting the marital assets in equitable distribution, spouses may receive more than 50% portion of their spouse’s pension.
This is done to avoid the distribution of other assets by compromising on the pension division.
Can You Protect Your Pension In Divorce?
If your spouse holds a retirement benefit of the same value as your pension, then you can ask the court to reject the division of pension.
Similarly, if your spouse does not have a retirement account equal to your pension, then you can divide the marital assets and avoid the division of your pension. Therefore, present a great bargain offer in front of your spouse to protect your pension. This way, you can pay a lump sum amount at once, and your lifetime retirement funds will stay secured.
If your spouse does not agree to your terms, then you will submit a QDRO to the pension administration to help them divide your pension.
