When you’re splitting up assets during a divorce, some things are relatively easy to remember. Maybe the two of you have a shared bank account, so you already know that you need to close that account and open one in your name. When you do, the two of you probably need to split up the contents of that account – if the money was earned during the marriage.
But there are other assets that people sometimes overlook, and these may be even more valuable than they realize. One example is a retirement account or a pension plan. If your spouse has one of these accounts, they’ve been earning it as compensation for their job during your marriage. That may mean that it is a marital asset and you have a right to claim some of those retirement benefits for yourself.
How do you get them?
Generally, you do this by using a qualified domestic relations order (QDRO). Your spouse doesn’t have the money from their pension plan yet, so they can’t split it with you in a tangible sense. But a QDRO is a court order saying that, when your ex retires and starts to get payments, they must split them with you based on the agreed-upon percentages.
In some cases, this could mean that you get 50% of the account and your spouse gets the other 50%. But the length of your marriage can also play a role. If your spouse earned some of the pension while they were single, that portion is not a marital asset, so you may get less than 50% under the QDRO.
Dividing property correctly is very important during a divorce. Be sure you know exactly what steps to take and what rights you have.
