The financial impact of a divorce can linger long after a couple has gone their separate ways. Thus, it’s wise to seek counsel on the best strategies for negotiating a property division agreement or convincing the court to give you a fair settlement during litigation. Retirement benefits are one asset, in particular, you will want to discuss with your divorce attorney. Any benefits that are acquired by either or both spouses over the course of your marriage will be treated as marital property and split between you. Here is an overview of how this can affect the income you receive in your golden years. 

What Happens to Retirement Benefits in a Divorce?

Dividing 401(k) & IRA Accounts 

There are several ways 401(k) and IRA retirement accounts can be divided in a divorce. If there are multiple accounts, they may be allocated between spouses in a manner that splits the value in a fair and reasonable manner. Each account can be divided through a transfer of ownership.

One spouse may decide to keep the accounts and compensate the other by giving them another asset. If you and your spouse can come to an agreement, your divorce attorney must draft a Qualified Domestic Relations Order and submit it to the court along with your proposed plan for the dividing benefits.  

Collecting Social Security 

While Social Security retirement benefits are not divided during divorce proceedings, you should know how they are affected once a marriage ends. If your marriage lasted at least 10 years, you may be entitled to collect benefits based on your ex-spouse’s earnings record. To qualify, you have to be age 62 or older, your ex-spouse must be eligible for Social Security retirement or disability benefits, and the Social Security benefit you qualify for on your own earnings record is less than your ex-spouse’s benefit.

If you wait until your full retirement age to file for your ex’s benefits, you will typically receive half of their full benefit amount; otherwise, it will be reduced. In the event you remarry, you will no longer be eligible to collect on your ex’s earnings record.

Retirement benefits can make up a large portion of your marital assets, making it important that you have a skilled divorce attorney on your side to ensure you get your fair share. The legal team at Lane, Felix & Raisbeck CO, LPA will provide you with invaluable assistance in understanding Ohio laws that are applicable to the division of marital property. They have more than 30 years of experience in divorce negotiations and litigations and will work diligently to protect your interests. Call their Cincinnati office at (513) 922-7700 to schedule a divorce attorney consultation, or visit them online to view all the different types of cases they handle.