Retirement & Divorce

Are you divorced or going through a divorce?

Make sure you’re informed about the process of dividing a retirement benefit.

A retirement benefit can frequently be one of the largest assets in a divorce. This means that a share of a former spouse’s retirement benefits can be an important source of income in old age.  This is especially true for older divorced women, who are more likely to be poor in old age than men or married women.  Yet, even though retirement benefits can be divided at divorce, retirement plans are often overlooked at divorce because a divorce can occur years before retirement. And many divorce attorneys and family court judges are unfamiliar with how retirement plans work and the laws that govern retirement plans.

It is important to make sure your divorce addresses any retirement benefits in order for you to receive a share of most kinds of earned retirement benefit. Exceptions are Social Security and Tier I Railroad Retirement benefits.  Once your divorce is final it can be more difficult, and sometimes even impossible, to obtain a share of the benefit if it was not addressed in your divorce decree.

The divorce decree should specifically address both the retirement benefit(s) and any survivor benefit(s).  Keep in mind that your former spouse may have earned benefits from more than one employer and/or under multiple retirement plans at the same employer, and/or through a union.  Make sure that your former spouse has properly disclosed all of the retirement benefits s/he has earned, and alert your divorce attorney or the divorce court if you believe that your spouse is not providing all the information.

Learn more about this issue

Click on the headings below to see more information.

A divorce decree alone is not enough. You also need an additional court order called a Qualified Domestic Relations Order (QDRO).
Private retirement plans will pay retirement benefits directly to divorced spouses if there is a QDRO on file.
Get a QDRO as soon as possible.
Find out if the retirement plan has a model QDRO.

The Pension Rights Center is working to solve the biggest obstacles to dividing retirement benefits at divorce

A fair share of a former spouse’s retirement benefit can often be an important source of income in old age, but many women never end up receiving the retirement benefits awarded to them at divorce. Meanwhile, divorced women are at significantly greater risk for poverty in old age than men or married women. We have launched an Initiative on Retirement Benefits at Divorce to identify why so many women are struggling to obtain the benefits they were granted at divorce, and to find solutions to these problems.  Learn more about the Initiative.

 

Retirement & Divorce Highlights:

Fact Sheets and Issue Papers
11/22/16 |Pension Rights Center

I’m getting divorced: What is a qualified domestic relations order and why should I care?

Legislation & Regulations
01/02/11

Documents for Divorce Proceedings

Fact Sheets and Issue Papers
12/21/10

Pension Rights After Divorce

The Latest on Retirement & Divorce:

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06/08/24

WSJ: His Ex Is Getting His $1 Million Retirement Account. They Broke Up in 1989.

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Our 2024 Resolutions Reflect our Commitment to Retirement Security for All

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Comments & Letters
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Senior Policy Consultant Norman Stein Testifies Before the IRS

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Press Release
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PRC Urges IRS to Protect Spouses

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Comments & Letters
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PRC Comments to IRS on Physical Presence Requirements

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