Retirement Benefits in Divorce – Who’s is it?
How are retirement benefits handled in a divorce in Utah? When a couple decides to get divorced in Utah often there is a situation where the husband has worked at his job and the wife has been a homemaker taking care of the children. This situation complicates some aspects of the equitable distribution mandated by the courts because through years of working the husband has often built up through deferred compensation plans and investments that are often solely his property. Unfortunately in the negotiation process the wife may not know or understand how these accounts should be separated and loses her right to have a share of her husband’s future retirement she helped him obtain through her work in the home. There are three main kinds of retirement assets that most employees with attain through their years of working and each will most likely be divided in different ways, but each spouse should know that they are entitled to benefit from the other spouses retirement plans for their future.
The Three Main Types of Retirement Assets
The three main types of retirement assets all have their own rules and different plans can vary depending how the employer and employee put them together initially. The most common of the three types are “Savings Plans” like IRAs, 401(k) Plans and Thrift Savings Plans to name a few. These retirement assets are like savings accounts and are often easily split in a divorce following a few legal documents being taken care of. “Defined Contribution” plans are valued according to the amount invested within it. These are easily split as well because the value currently invested can be easily understood. The third type a “Defined Benefit Plan” is much more complex because the defined benefits to not become the property of the working spouse until retirement age and can lead to much negotiation a posturing as to how to handle current or future payments for the receiving spouse.
Get Help To Better Understand Your Rights
The trained professionals at Utah Divorce Hotline can help you understand your rights whether the holder of a retirement plan or the receiving spouse. We can help you receive the benefits of the work performed during your marriage whether it was you or your spouse working. Call today to get the information you need to make your divorce as smooth as possible. We never plan for a divorce, but when it does occur the professionals at UDH can help you to get through it. Seak with a Utah Family Law Attorney at our office today: 801.618.1331.