I Know My Husband has a Pension. Should that Pension be Included in My Divorce Settlement and How Much should I Expect to Receive?
Although it is not often thought of as such, a retirement plan could be the biggest financial asset divorcing couples hold. For sure, your husband’s pension should be included in your divorce settlement.
There are many different types of retirement plans. They include: defined benefit pension plans; defined contribution and 401(k) plans; federal and military pension plans; state-sponsored retirement systems; and 457 deferred compensation plans. In order to avoid making costly mistakes, you need to know all the facts, including the type of retirement plan you are dealing with, the plan’s “normal retirement age,” benefits accrued as of the agreed-upon-date of marriage dissolution for your state’s jurisdiction, etc.
A Qualified Domestic Relations Order (QDRO) is often needed so that the plan administrator can make payments to the former spouse. This might sound simple enough on the surface, but it can result in a significant difference in the amount you receive if done incorrectly.
Due to the complexity involved, most family law attorneys are not experts in the division of retirement assets. You need expert advice and guidance with this.