One of the many negative consequences of a divorce is a dent in your financial status. There’s a lengthy procedure of distributing finances equally between spouses.
However, the complications vary depending on the kind of relationship you had with your ex. If it’s a bitter relationship, then it’ll take a toll on your pension plan.
Even if one person is earning a pension, it’s considered a mutual asset. At the time of divorce, it’s subjected to division.
If you’re struggling to protect your pension after a divorce, then you must seek a divorce lawyer. Here’s how a divorce attorney can help.
Know the Laws
First, you must know your state laws concerning divorce regulations. Although the asset must be split up between the two after separation, the process isn’t automatic.
A request must be generated against the share of your asset before the divorce. Not only that, but a document known as the QDRO must be filed to get access to financial benefits from a pension.
Evaluate Pension Details
After the recognition of state laws, you’ll have to evaluate how pensions work. The two main areas to focus on are verification of distribution method and ensuring the survivor’s benefit.
You have to decide between getting the entire payment or a monthly annuity. If you choose the annuity option on a pension plan that is designed as a single-life payout, then you’ll only be paid until you’re dead.
However, if your pension plan is designed as a joint-life payout, you’ll still be paid if one of the spouses is alive.
Give an Alternative
If you’ve got a mutual understanding with your separating partner, then he or she can propose an alternative to distributing other assets in place of pension.
The purpose is to offset the other spouse with anything of equal value as your pension. Another alternative that is less time-consuming is to take away what is yours.
If both the spouses own assets of equal value and mutually agree to walk away with them, then that’s the most convenient solution.
Hire a Divorce Lawyer
Hiring a divorce attorney and legal settlements is always the safest and reliable option. Divorce lawyers are trained to help those going through difficulties during separation.
They guide individuals about their division of property and its impact on their financial status.