Sunday, August 12, 2012

WHAT HAPPENS TO RETIREMENT BENEFITS IN A LEGAL SEPARATION?

QUESTION: What happens to retirement benefits in legal separation? One person is retired and one still works with 5 years left.

MY RESPONSE: All community property is divided in a legal separation, the same way that community property is divided in a divorce: 50/50. Each party gets a 50% interest in the community portion of the other party's retirement benefits, usually by way of a QDRO (Qualified Domestic Relations Order). The community portion of a party's retirement benefits is that portion that was earned during the marriage to the date of separation. Portions of retirement benefits earned before the marriage or after separation are the separate property of the party earning those benefits. You would best retain, or at least consult, an experienced Family Law Attorney to ensure that the retirement plans are properly divided.

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