For example, when a Virginia court issues an order to divide military pension pay as a result of a divorce, certain conditions must be met by the non-military spouse before he or she can receive a share of the military member’s pension directly from the Defense Finance Accounting Service (“DFAS”).
Generally, those conditions include that the spouses were married for at least 10 years, that the military spouse served in the military for at least 10 years, and that a minimum of 10 years of that service took place during the marriage.
DFAS, which administers distribution of military pension payments, is the agency that can then dispense benefits to the non-military spouse. Exceptions to the required conditions may occur in some cases. However, these would be governed by the court and would generally involve the payments made to the non-military spouse directly from the military member.
The division of retirement benefits in a divorce is generally a complex matter that should be addressed by an attorney experienced in handling them. At Tobias Iszard, we have years of experience resolving these matters through detailed legal action. Our legal team has handled all types of private, government, and military retirement plans involving many variations. If you are facing this issue in your Virginia divorce, we highly recommend that you turn to us for effective legal assistance to ensure your financial future is protected.
Contact us at (703) 215-1880 to learn more and get started with your divorce plans today.
Retirement Accounts in Divorce Proceedings
In general, employer-based private retirement plans, such as 401(k)s or pension plans, are subject to marital property division between the spouses when going through a divorce. The ultimate transfer of these funds is generally done through a Qualified Domestic Relations Order (QDRO) which is entered by the Court after the divorce is finalized, but determining what amount is to be divided is an issue during the parties’ divorce.
In these scenarios, one spouse has paid into the retirement account generally through his or her employment. For the other spouse to receive a portion of the plan or pension’s benefits after a divorce, certain legal actions must be taken.
Qualified Domestic Relations Orders (QDROs)
The QDRO will instruct a spouse’s pension plan administrator on what percentage and how to pay shares of the plans’ benefits to each spouse after divorce. The spouse who does not own the account should not assume that he or she has an automatic right to these retirement funds merely because of marital property distribution laws in the state.
This spouse typically needs to have a QDRO drafted after the divorce proceedings in order to receive these benefits. Without a QDRO, the plan’s administrator would not be obligated to provide payment of benefits to this spouse.
QDROs must be approved by the court and the plan administrator to be effective and distribute the retirement assets. Furthermore, they apply only in cases where the retirement plan is IRS tax-qualified; these types of plans fall under the federal Employee Retirement Income Security Act (ERISA).
Federal thrift savings plans fall under the Federal Employee Retirement System Act of 1986; these plans also require a court order for benefits to be divided in divorce. Dividing an IRA also differs in procedure. Military or other government pensions are covered by other statutes.
The division of retirement accounts through divorce can result in unintended tax problems and loss of otherwise eligible benefits and protections if not handled correctly; for this reason it is best to rely on one of our Manassas retirement lawyers to ensure that your case receives the knowledgeable oversight that is needed.
Call today to get started on your case.
Military Retirement Issues
Dividing military pension benefits are subject to special procedures that differ from retirement accounts and benefits accrued through private employers. Special conditions and requirements pertain to division of military pensions.
For example, when a Virginia court issues an order to divide military pension pay as a result of a divorce, certain conditions must be met by the non-military spouse before he or she can receive a share of the military member’s pension directly from the Defense Finance Accounting Service (“DFAS”).
Generally, those conditions include that the spouses were married for at least 10 years, that the military spouse served in the military for at least 10 years, and that a minimum of 10 years of that service took place during the marriage.
DFAS, which administers distribution of military pension payments, is the agency that can then dispense benefits to the non-military spouse. Exceptions to the required conditions may occur in some cases. However, these would be governed by the court and would generally involve the payments made to the non-military spouse directly from the military member.
The division of retirement benefits in a divorce is generally a complex matter that should be addressed by an attorney experienced in handling them. At Tobias Iszard, we have years of experience resolving these matters through detailed legal action. Our legal team has handled all types of private, government, and military retirement plans involving many variations. If you are facing this issue in your Virginia divorce, we highly recommend that you turn to us for effective legal assistance to ensure your financial future is protected.
Contact us at (703) 215-1880 to learn more and get started with your divorce plans today.
