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Claery & Hammond, LLP Claery & Hammond, LLP
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Divorce and Retirement Income

A Legal Team You Can Trust

When you are considering divorce and your partner receives retirement income, you need to understand how that money will be divided during the divorce.

In cases where the husband was the breadwinner and assets were accumulated during the marriage, your lawyer will work to create a plan to equalize the division of those funds. When you have a defined pension plan, both sides will create a Qualified Domestic Relations Order (QDRO). This document states how much of the pension funds will be given to the spouse that is not named in the pension plan.

A QDRO can apply to other situations as well, such as a 401(k) plan. These funds may be allotted separately or placed into the other spouse's IRA. Your lawyer may advice you to take into consideration how heavily you will be taxed on the defined benefit pension plan, as some states have high levels of taxation. This could alter how much of the pension funds you will ask for to compensate for the loss in taxation.

If you have additional questions, contact our legal team to speak with a Los Angeles family lawyer.


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