When it comes to a no fault divorce, you may be wondering if there will be a division of your retirement funds between you and your spouse. They answer is likely yes, if it was acquired during the course of the marriage. Any retirement funds, also known as pensions, acquired during the marriage are marital property. Pensions acquired before marriage that accrue earnings during the course of the marriage are subject to division. To gain some clarity on the topic, let’s take a closer look at what this type of divorce is and the division of assets.
A no-fault divorce is one in which you do not have to prove your spouse did something wrong. In other words, no one is at fault. Basically marriage to this person is no longer acceptable.
In a no fault divorce, you can get a divorce even if your spouse does not want it. Claiming irreconcilable differences and stating that there is “no hope of reconciliation” are the ways to get the no-fault divorce. Also, during this process, you must live in physical separation from your spouse.
As part of a no fault divorce, retirement funds, pensions, 401 K plans, IRAs and any type of deferred monetary compensation plans are subject to equitable distribution in the court. This is true even when the accounts are titled in one spouse’s name. However, it is only the assets acquired during the time of the marriage that fall under the equitable distribution.
In the state of Georgia, the division of assets during a divorce is the same; the courts will likely consider retirement plans as marital property, so it will be subject to the equitable distribution. However, the way the court will distribute the assets depends on certain factors. Such as when the pension was required and the financial needs of each spouse during the divorce proceedings.
During distribution, the court will consider marital contributions from the spouse not listed on the benefits. Other considerations include the length of marriage and time length contributions. The court will also consider whether there has been reliance on the expectation of future retirement benefits for the spouse.
If the retirement is from the military, it is always subject to equitable distribution for both spouses.
If you are getting a no fault divorce and are wondering about how it will impact retirement funds, Reeder Law Firm is here to help walk you through the process step-by-step to give you the professional advice and support you need. To learn more about how getting a divorce impacts retirement funds in Georgia or to get your free, confidential consultation, call Reeder Law firm today at (770) 475-2521.