Retirement Benefits in an Athens GA contested divorce
Athens Georgia divorce attorney
Community property includes accrued or vested retirement benefits. Therefore they need to 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.
Some retirement benefits are not considered as Community property. These are:
• Social Security payments
• Compensation for military injuries
• Workers compensation disability awards
Regardless of the length of the marriage, retirement benefits must be discussed and settled. 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 spouses 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 first, the spouse without the retirement benefits takes the present-day value of his or her interest in the retirement benefit and exchanges it for something else of equal value, like cash or other assets. Stock options and pension plans where a person must work for a certain number of years may be worth more than you think. It is advisable to use the services of a professional pension actuary or appraiser prior to taking a decision.
When dividing a retirement account, you must make sure you dont lose any tax advantages. A Qualified Domestic Relations Order (QDRO) is needed to transfer a share of retirement funds from the spouse participating in the retirement plan to the other spouse.
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