Retirement Benefits in an Columbia County GA divorce

Retirement Benefits in an Columbia County GA divorce

Richmond County GA divorce attorneys

Marital property includes accrued or vested retirement benefits. This means they should be divided in a divorce. Retirement benefits falling under Community property include military pensions, veterans educational benefits, ERISA funds, IRAs, Keoghs, Employee Stock Option Plans (ESOPS), 401K and 403K plans, etc.

Certain retirement benefits are not considered as Marital property. These are:
• Social Security payments
• Compensation for military injuries
• Workers compensation disability awards

Irrespective of the length of the marriage, retirement benefits should be discussed and settled. For instance, the petition, marital settlement agreement and judgment should all provide either for the partys waiver of retirement benefits or the division of any such benefits. A party must waive retirement benefits only if that spouses share is worth very little.

There are two methods for dividing retirement benefits: (1) the present-day valuation buy-out, and (2) division into two accounts. In the first, the party without the retirement benefits considers the present-day value of his or her interest in the retirement benefit and exchanges it for something else of equal value, such as cash or other assets. Stock options and pension plans where someone must work for a certain number of years may be worth more than you imagine. It is wise to hire a professional pension actuary or appraiser before taking a decision.

When dividing a retirement account, you want to 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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Shawn Gunder is an Augusta GA divorce lawyer & Georgia Military Divorce Lawyer He is an Augusta military divorce lawyer, GA child custody attorney and Augusta Georgia child support attorney.