Divorce & Your Pension (2024)

FAQs

Divorce & Your Pension? ›

In Florida, any property acquired during marriage, including a pension or 401(k) plan, needs to be split equitably between you and your spouse. While there may be a presumption that division of property

Research from London School of Economics showed that women's household income fell by 20% after divorce, while men's household income rose by 30% after divorce. After age 50, the financial consequences for women become even more pronounced, with average household income sinking by 45%.

This is a common question; the general answer is, “Maybe.” Any asset acquired while two people are married is subject to asset distribution in divorce. This means if your pension was funded, even partially, during your marriage, your spouse may be entitled to half of the portion that was funded while married.

Generally, a pension earned during the marriage is joint marital property and subject to the division of assets. There are two ways state law separates marital assets: community property and equitable distribution. Any part of the pension earned before the marriage can be non-marital, separate property.

Men Often Experience a Loss of Identity

But when a divorce happens, men lose most of it – the spouse, the children, the familial bond, and the happiness. The custody of the children is often given to the mother, while the father only gets the visitation rights.

After separation, men's incomes on average drop 17% while they decline 9% for women, researchers said in a blog post Monday. Employed people who went through a divorce in the past 12 months saw a 12% cut in income, earning less than peers who didn't go through a divorce.

When a couple gets divorced their pensions are usually included in the financial settlement along with property and other assets. Without a 'consent' or court order confirming the settlement, both parties can make a claim on their former partner's pension, regardless of how long they've been divorced.

In terms of how much either spouse is entitled to, the general rule is to divide pension benefits earned during the course of the marriage right down the middle. Though that means your spouse would be able to claim half your pension, they are limited to what was earned during the course of the marriage.

You can't receive survivor's benefits if you remarry before 60. If you remarry after age 60 (50 if disabled), you can still collect benefits on your former spouse's record. When you reach age 66, you may get retirement benefits from your new or current spouse's record if it is higher.

How do I protect my pension after divorce? ›

The best way to prevent your partner from claiming your pension is to come to a financial agreement that protects your pension. Once this agreement has been approved by the court and made into a legally-binding consent order, you will be protected from any future claims that your ex-partner might make for your pension.

Although you can withdraw retirement money for your divorce, this should be your last resort. Withdrawals from a 401k, especially before age 59 1/2. generally result in taxes and penalties.

The Bottom Line. If you were married for at least 10 years, you may be able to collect Social Security benefits based on your ex's work record. If you meet the requirements, you can receive benefits equal to as much as 50% of your ex's retirement benefit.

That means you cannot empty your joint account unless your spouse consents or you get a court order first. If you are considering divorce, it's important to prepare financially. Our attorneys can advise you regarding what information you need to gather and how to address your fears of having no funds.

Get a new credit card

“Divorce can do damage to credit scores,” says Hess. For example, if your ex removes you as an authorized user from a credit card account that has been paid in full every month, your own credit scores could dip because all of those good credit habits are wiped from your credit report.

Rosenfeld from Stanford University discovered that women started almost 69% of all divorces among about 2,000 surveyed couples. However, in contrast, in unmarried relationships, there wasn't a significant difference in whether women or men chose to end the relationship.

As you might expect, research has found that kids struggle the most during the first year or two after the divorce. 2 Kids are likely to experience distress, anger, anxiety, and disbelief.

But according to new research, there is a potential downside to doing this: People who keep their financial resources separate are less happy with their relationship than couples who don't—and their relationship is less apt to survive.

In a typical divorce, half of your income streams will disappear since a two-income household will become a one-income household.