A pension earned during a marriage is usually the property of both spouses

A pension earned during a marriage is usually the property of both spouses

Did you know that, in general, retirement assets earned during a marriage are marital property in the same way that a house and a savings account are?  This applies to:

▪    pension benefits earned during a marriage;

▪    retirement savings accounts that were funded during a marriage; and

▪    the earnings on these accounts that accumulated during the marriage.

Please note that state laws govern the specifics of what is and is not marital property – and how the property is divided. In addition, divorcing couples may negotiate a variety of methods for dividing marital assets.  The important thing is to make sure all marital property is included in the property to be divided. So look for statements from those old 401(k), pension and profit sharing plans you or your spouse may have from a previous employer, or an IRA account that has been long forgotten.

This is the second in a series of blog entries on the subject of divorce and retirement. Monday’s blog entry will focus on the importance of submitting legal paperwork relating to your divorce to the retirement plan right away.

Read the rest of the blog entries in this series:

• Getting divorced? Don’t forget the pension!
• A pension earned during a marriage is usually the property of both spouses
• Don’t delay: Submit court orders to the plan right away!
• Don’t take a pension for granted
• Retirement and Divorce: Additional Resources