Dividing Pensions in a New York Divorce
Your Spouse’s Pension May Be Your Most Valuable Asset
For many divorcees, the so-called “golden years” of retirement can become a long journey across the rocky terrain of financial hardship. Career homemakers who divorce later on in life may find themselves facing vastly reduced circumstances in the wake of a marital breakup. For many middle-aged spouses, it is not unreasonable to fear that a divorce will leave them in financial ruin for the rest of their lives (See Lois Brenner’s Divorce book, “Getting your Share”).
In many of these cases, it is the woman who goes into her divorce on unequal footing and, therefore, must pay careful attention to the long-term consequences of how their marital property is divided. For example, many women will enter and leave the workforce due to the demands of child rearing. This may ultimately result in a lower contribution to their own pension plan – if they have one at all.
When a spouse contributes to their marriage as a homemaker or stay-at-home-parent, they may face a midlife divorce with little understanding that their spouse’s pensions may be their most valuable asset. In reality, the two largest assets that can be divided in a middle-class divorce are often the marital home and the husband’s pension. Many times, the pension is more valuable than the house they live in.
How Pensions Are Divided & Distributed in a Divorce
Many divorcing couples do not realize that pensions are considered marital assets and, thus, subject to equitable distribution. Many times, one spouse has accumulated pension benefits greater than the value of their home. While many people are aware of the possibility of dividing their house or its value, the importance of dividing a pension is not as well known– particularly since its actual distribution may be several years away.
In many cases, the division of a spouse’s pension will be one of the most complicated aspects of divorce. In fact, these issues tend to generate more appeals than any other issue in equitable distribution. For this reason, it is highly recommended that you speak with a knowledgeable divorce lawyer about pensions, 401(k)s, annuities and other deferred compensation options, including tax consequences.
Unlike bank accounts, stocks or bonds, the rights to a pension involve:
- Type and classification
- Valuation
- Distribution
- Qualified domestic relations orders
- Tax consequences
Discuss Your Options with Lois M. Brenner, Esq. Today
If have questions about pension plans and retirement assets, including how they can be divided and distributed in a New York divorce, please contact our team at Lois M. Brenner, Esq. We’re ready to put our experience to work for you.
Contact our office at (646) 663-4546 to schedule your initial consultation with Lois Brenner.
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We were looking for a mediator to help us with visitation issues we were having due to the pandemic. With all the problems we were having getting the kids back and forth, and arguing about taking trains and buses during visitations, we called Lois Brenner to help us make some decisions. She really set us straight. She spent a lot of time with us so we could get a parenting agreement together to set some rules we could both agree to. I feel a lot better now. Thank you Ms. Brenner.- Dina
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My divorce was very stressful time. Since we were able to agree with my ex-husband on many important issues I originally thought that I will be able to fill in all the necessary documents by myself. It turned out that it is nearly impossible task. The amount of paperwork was overwhelming! I was not happy with some lawyers I've approached - too expensive, too impersonal, too aggressive. When I met Lois everything changed. For very reasonable price she was able to help us - talked to both of us, gave us great suggestions. Everything went extremely well. It was quick and painless. We could not thank her enough!
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“First, you were so easy to talk to and second, you really know what you are doing!”- Sharon
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“Thank you for doing such a tremendous job!”- Bill
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Thank you Ms. Brenner! It was a rough summer trying to get our parenting agreement together.but you really helped. My ex-husband and I fought all summer about what the children's schedule would be once school started. Your endless guidance and productive sessions with us made all the difference. You straightened us out with your sound, caring advice. We both feel better now. Our kids feel better too. Thank you, thank you. We hope you had a great summer. We will recommend you highly to anyone needing a family law attorney.- Brenda
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“We saved thousands of dollars!”- Gloria
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When I first decided to hire a divorce attorney, I thought a male attorney would be best. Lois Brenner really surprised me. Although she has written a divorce book on women’s rights, she is totally an advocate for men as well. She really understood how much I loved my kids, and listened and understood all the horrible things my wife was doing to destroy their relationship with me. She didn’t miss a beat and really went to bat for me. She reached out to my wife’s attorney every time my wife made any attempt to disrupt my visiting our kids and always demanded the best results. She made herself available, even when she was on vacation! Lois has been there every step of the way in these difficult circumstances. I highly recommend her.- Sam
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I just wanted to take a moment to personally thank you for the wonderful job you did mediating our separation agreement and putting this document together. You not only saved us hundreds of thousands of dollars but helped avoid what would have been a disastrous future in court. I'm grateful you did not give up on us. If I ever am involved in another situation like this, and I hope I never am, I would certainly recommend your services.- J.M.
