Family Law Now After Hours
Hosted this coming week by Russell Alexander, Golan Yaron & Carrie Heinzl.
Want to learn how to protect your pension during divorce?
We will be live at 5PM on June 4th on Zoom and our YouTube Channel, to explain the tips, tricks and considerations for safeguarding your retirement savings. This series is one of our many commitments to providing our community with valuable resources to support them in navigating family law matters.
Safeguarding Your Retirement Savings
1. Understanding Pension Rights
In many divorces, pension assets are considered marital property subject to division. Understanding your rights and entitlements to pension benefits is crucial for protecting your retirement savings.
2. Seeking Legal Advice
Consult with a divorce attorney who specializes in family law and has experience with pension division. They can provide guidance on the laws and regulations governing pension division in your jurisdiction.
3. Valuing Pension Assets
Determine the value of your pension assets accurately. This may require hiring a qualified actuary or financial expert to assess the present and future value of your pension benefits.
4. Exploring Division Options
There are various methods for dividing pension assets in divorce, including offsetting other marital assets, dividing the pension benefits directly, or using a Qualified Domestic Relations Order (QDRO) to transfer funds into a separate account.
5. Considering Tax Implications
Be aware of the tax consequences associated with dividing pension assets. Depending on the division method chosen, there may be tax implications for both parties that need to be taken into account.
6. Negotiating Fairly
Work with your ex-spouse and legal counsel to negotiate a fair and equitable division of pension assets. Consider factors such as the length of the marriage, each party’s contributions to the pension, and future financial needs.
7. Protecting Future Benefits
Ensure that any agreements or court orders regarding pension division are properly documented and enforceable. This helps safeguard your rights to future pension benefits and prevents disputes down the line.
8. Updating Beneficiary Designations
Review and update beneficiary designations on your pension plan and other retirement accounts to reflect changes in marital status. Failing to update these designations could result in unintended consequences in the event of your death.
9. Seeking Professional Assistance
Don’t hesitate to seek assistance from financial advisors or pension experts to navigate the complexities of pension division. Their expertise can help you make informed decisions and protect your retirement savings.
10. Planning for the Future
Once pension division is finalized, reassess your retirement goals and make any necessary adjustments to your financial plan. Take proactive steps to continue building your retirement savings and secure your financial future.
