Why Is It Important To Have A Pension Divded In A Divorce?
Posted on Jan 17, 2012 11:25am PST
Q. Karen R., of Minnesota asks: How important is it to have a pension divided in a divorce?
A. Spencer, a Lead Pension Analyst at Pension Evaluators & QDROS Of
Troyan, Inc Associates Group replies: "Pensions can, in many cases, form the largest asset in a divorce. Yes,
in many cases, it can be worth more than the family home and a good family
lawyer should make you aware of this and research the subject carefully
with you. A pension could provide some bargaining power and enable you
to reach a settlement. Having a pension can mean the difference between
enjoying your retirement or being reduced to penury. It would mean the
difference between independence and reliance on others. Advice should
be sought about tax implications on tax effecting a pension as lump sums
as they are not liable for tax but tax effecting could attract a tax offset
33 per cent or more. A pension is not his or hers but just another asset
which has to go into the divorce pot for fair and equitable distribution,
whether you do this voluntarily, through mediation, solicitors or the
courts, you should always have good legal advice. The courts have wide
powers to apportion pension rights and this should be considered when
trying to come to an agreement."
Spencer Olsen,
Lead Pension Analyst
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