Retirement Benefits in an Warner Robins Georgia contested divorce
Macon Georgia divorce attorneys
Accrued or vested retirement benefits are Marital property. This means they must be divided in a divorce. Retirement benefits that fall under Marital property include military pensions, veterans educational benefits, ERISA funds, IRAs, Keoghs, Employee Stock Option Plans (ESOPS), 401K and 403K plans, etc.
Certain retirement benefits are not classified as Marital property. They include:
• Social Security payments
• Compensation for military injuries
• Workers compensation disability awards
Regardless of the duration of the marriage, retirement benefits should be discussed and resolved. For instance, the petition, marital settlement agreement and judgment must all provide either for the partys waiver of retirement benefits or the division of any such benefits. A party should waive retirement benefits only if that partys share is worth very little.
There are two options for dividing retirement benefits: (1) the present-day valuation buy-out, and (2) division into two accounts. In the former, the spouse without the retirement benefits considers the present-day value of his or her interest in the retirement benefit and exchanges it for something else of same value, such as cash or other assets. Stock options and pension plans where a person must work for a certain number of years can be worth more than you think. It may be wise to hire a professional pension actuary or appraiser prior to making a decision.
When dividing a retirement account, you want to make sure you dont lose any tax advantages. A Qualified Domestic Relations Order (QDRO) will be required to transfer a share of retirement funds from the spouse participating in the retirement plan to the other spouse.
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