Ohio couples who are entering into the divorce process know that it can be overwhelming, to say the least. Worrying about what is going to happen to all of your assets can be scary. By taking the time to research what is likely to happen to your possessions and investments, you can help put your mind at ease and appropriately prepare yourself for the future.
A talk about your pension
In most divorce proceedings, pensions are considered marital property. However, it’s important to note that the funds in the pension will not be divided if they are considered separate property. Funds in your pension account may be considered separate property in the event that you contributed to your pension prior to getting married.
You’ll need to deduct your premarital contributions from the overall amount of your pension benefits to get your marital pension benefits amount. Typically, this will be split equally depending on whether you’re in an equitable distribution or community property state. In the event that it gets split 50/50, your spouse will be entitled to half the amount of the marital pension benefits.
You can offer alternative settlement solutions
Just because your spouse is entitled to some of your pension doesn’t mean that they have to take it. Rather, you can offer them your stake in another one of your marital assets in exchange for keeping your pension fully intact. For example, if your pension is equal to the value of the car you were awarded, you can offer to give your spouse the car in exchange for your spouse giving you their stake in your pension plan.
When it comes to splitting up a pension during a divorce, it can be confusing at first. By understanding what the marital amount of your pension is, you can come up with alternative settlement solutions to attempt to keep your entire pension. It’s always a good idea to talk with an attorney to help you along the way.