Your Rights To Retirement Benefits In A Virginia Divorce
Going through a Virginia divorce could put your financial future in jeopardy. If you and your spouse have built up retirement savings, you are entitled to a fair share.
In Virginia, any retirement benefits earned by you or your spouse are subject to the rules of equitable division. Negotiating agreements regarding retirement accounts is often complex and any mistakes can be costly. Our Virginia divorce attorney explains how state and federal laws apply to retirement benefits in divorce and how to protect your legal rights.
How Virginia Courts Divide Retirement Benefits in Divorce
Marital property and assets in a Virginia divorce are subject to equitable division. Under the Virginia Code, you are legally entitled to a reasonable and fair share of anything earned, acquired, or accumulated during the marriage.
Alongside homes, cars, personal belongings, and money in bank accounts, retirement benefits are subject to equitable division as well. Key factors that influence the amount you receive include:
- The length of the marriage;
- Each spouse’s income and earning potential;
- Any sacrifices made on behalf of a spouse, such as giving up your career to raise children;
- The reason for the divorce and any marital misconduct on the part of either spouse;
- Other divorce-related agreements regarding marital assets and the potential tax implications.
In addition to state laws, complex federal rules and regulations also apply when dividing retirement benefits in a Virginia divorce. For example, under both the Employee Retirement Income Security Act of 1974 and the Internal Revenue Service Code, you must get a Qualified Domestic Relations Order before any funds can be released. Federal law also dictates your rights to any VA or Social Security benefits your spouse receives.
Protect Your Rights To Retirement Benefits in a Virginia Divorce
Retirement benefits, which include pensions and 401(k) accounts, are easy to overlook in Virginia divorce proceedings. However, they represent significant amounts of money and play a major role in protecting your future financial security. To protect your rights in getting a fair share, take these steps:
- Obtain account statements for all retirement assets, including 401(k)s, IRAs, pensions, and annuities, to determine what is subject to division;
- Consider your options in rolling retirement benefits to personal accounts;
- Be aware of potential tax penalties for early withdrawals;
- Contact the Veteran’s Administration and Social Security to determine your rights regarding these benefits;
- Consider other property and assets you may be entitled to in a Virginia divorce and what you may be willing to negotiate.
Get Trusted Legal Help From Our Experienced Virginia Divorce Attorney
Dividing retirement benefits in a Virginia divorce is a complex process but can play a significant role in protecting your financial security in the future. Schwartz Kalina, PLLC protects your rights, guides you through complex state and federal laws that apply, and fights to get you the maximum divorce settlement. For trusted legal help throughout the divorce process, call or contact us online. Request a consultation today with our experienced Virginia divorce attorney.
Sources:
law.lis.virginia.gov/vacode/title20/chapter6/section20-107.3/
dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/division-of-retirement-benefits-through-qualified-domestic-relations-orders.pdf
