Twenty years ago, you decided to drop out of the workforce to raise your children. Your spouse was fine with this, as they had a high-paying job, so they supported you financially. Likewise, your general retirement plan was just to use the pension that your ex was earning through their employment.
However, your spouse has now asked for a divorce, and it’s throwing many of these plans into question. Your children have grown up, so you don’t have to worry about childcare issues, but you are worried about your financial future. For instance, can you still get half of your spouse’s pension plan so that you can retire, or are you going to lose access to those financial assets, meaning you may have to go back to work?
Using a qualified domestic relations order
The best way to divide pension plans and retirement funds in divorce is to use a qualified domestic relations order (QDRO). Your spouse may not be receiving the benefits or payments yet, but the QDRO can assign a percentage of them to you. When your spouse begins receiving those payments, that predetermined portion has to be given to you, which you can use for your own retirement.
This may not be half of the plan, however. It depends on a lot of factors, such as the length of your marriage. For instance, if you were only married for half of the time that your spouse earned the pension, then they may only have to divide half of that plan with you—meaning that you could receive 25% of the total monthly allotment.
Every case is unique, of course, so these financial details just demonstrate how the process works in general. Be sure you know what legal steps to take at this time.