top of page
Search

Divorce: What Women should consider regarding Retirement BEFORE they file


ree

My first divorce was like a death it literally left me feeling angry, hurt, humiliated, devalued, depressed and isolated. I had a four year old baby I had to take care of all by myself. Now my second divorce, I often call" The One I'll Never Admit" lol but this one was my wake up call. It reminded me that God had one more test for me to complete. Even though this marriage only lasted less than a year, it was long enough for me to see that I still had some work to do on myself.


Divorce is painful enough with all the emotions, the children, the division of assets. Since I've done this twice it kind of makes me a subject matter expert on giving women some tips on some things they should consider before filing for divorce.


Since I focus on retirement in my business I saw it fitting to express how important it is that women make it a priority to receive a fair share of retirement assets. Retirement funds may be among the biggest assets you have as a couple. It’s important to know that these funds are not automatically split in a divorce.


Just like other marital assets, a divorce court judge or an agreement made between you and your spouse divides the benefits. Learn as much as you can about the benefits you and your spouse earned during the marriage. Then make sure you and your lawyer take steps to protect your right to those benefits. Even if you and your spouse have agreed to divorce through a mediation process, consider hiring a lawyer to advise you along the way. It is an extra expense, but it will cost a lot more if you make uninformed decisions.


Retirement benefits come from a variety of employer-provided plans — pension plans, 401(k) plans, deferred compensation plans, and 403(b) plans, among others. Note that your spouse may have 401(k) assets sitting in an Individual Retirement Account (IRA), if there was a job change during the marriage. Make sure you consider all former employers, because any type of employer can sponsor retirement benefits.


The divorce law in just about every state considers retirement benefits earned by either spouse during the marriage as “marital property” (or “community property” if you live in a community property state).


You need to ask two key questions:


1. What benefits are divisible? Depending on state law, all retirement benefits earned during the marriage may be divisible. These include “traditional”pension plans — defined benefit plans and defined contribution plans, such as 401(k) and 403(b) account plans. States differ in what types of benefits they consider marital property.


2. When does marital property stop accumulating? Some states consider the date of divorce as the time when marital property stops accumulating. Other states may divide property earned only up to the date of separation or some other date.


Obviously there are many other things that you need to consider regarding finances when going through a divorce but here are just a few aspects to consider.


Have all the information about your spouse’s retirement benefits before you divorce. Trust me, it is nearly impossible to go back to court and ask for a share of your ex-spouse’s benefit that you learn about after the fact.


Any further questions don't hesitate call!


Carmen Hornberger

CEO Benefits To Go LLC

314.393.4037


 
 
 

Comments

bottom of page