If your spouse asks for a divorce, you may be worried about your financial future. For example, gray divorce is growing more common in the United States. Couples in their 50s and 60s are planning for retirement and getting closer to using those financial assets. But if your spouse asks for a divorce, you may be worried that it is going to jeopardize your plans.
Thankfully, you do have options. One is to use a qualified domestic relations order. The court can determine what percentage of the retirement account should be allotted to you during property division, and the QDRO then requires your ex to pay you when they start receiving the retirement benefits.
Does this mean you will get 50% of the account?
No, this does not always mean that you get 50% of the payments. The court will consider a number of various factors – most importantly, the length of your marriage.
Say that your spouse needed to work at the company for 30 years to earn the retirement package, for example. They worked there for 10 years before you got married and will continue working for five more after the divorce. This would mean you were married while they earned half of the total benefits package, which may then be divided between the two of you – giving you 25% in total. If you were married the whole time your spouse earned those benefits, then you may get 50%. Every case is unique.
This is just one example of how you can protect retirement assets during a divorce. It helps to show why it’s so important to carefully consider all of your legal options.