Going through a divorce can be a complicated and stressful process, especially when it comes to dividing assets. One aspect of asset division that can often be overlooked is the division of retirement benefits. In Ohio, retirement benefits are considered property, and therefore subject to division in a divorce.
Types of Retirement Benefits
There are various types of retirement benefits that may need to be divided in a divorce, including:
1. Pension Plans
A pension plan is a retirement plan that is funded by an employer. In Ohio, pension plans are considered marital property and can be divided in a divorce.
2. 401(k) Plans
A 401(k) plan is a retirement savings plan that is funded by an individual through their employer. 401(k) plans are also considered marital property in Ohio and can be divided in a divorce.
3. IRAs
An IRA, or individual retirement account, is a retirement savings account that is funded by an individual. IRAs are also considered marital property in Ohio and can be divided in a divorce.
Process of Dividing Retirement Benefits in Ohio
In Ohio, retirement benefits are divided through a process called equitable distribution. This means that retirement benefits are divided fairly, but not necessarily equally, between the two parties.
1. Valuation of Retirement Benefits
The first step in dividing retirement benefits is to determine the value of each benefit. This can be done by obtaining a statement or appraisal of the retirement account. It is important to note that only the portion of the retirement benefit that was acquired during the marriage is subject to division.
2. Determination of Marital vs. Non-Marital Property
The next step is to determine what portion of the retirement benefit is considered marital property and what portion is considered non-marital property. Non-marital property refers to any property that was acquired before the marriage or after the date of separation.
3. Court Order
Once the value of the retirement benefit and the marital portion have been determined, the court will issue an order outlining how the retirement benefit will be divided. The order will typically state the percentage of the benefit that each party will receive.
4. Qualified Domestic Relations Order (QDRO)
In order to divide a retirement benefit, a Qualified Domestic Relations Order (QDRO) must be prepared. A QDRO is a legal document that instructs the retirement plan administrator on how to divide the benefit. The QDRO must be approved by the court and the retirement plan administrator before any funds can be distributed.
Importance of Experienced Legal Representation
Dividing retirement benefits in a divorce can be a complicated and technical process. It is important to have experienced legal representation to ensure that your rights and interests are protected. A skilled attorney can help you navigate the process of dividing retirement benefits and ensure that you receive a fair distribution.
Conclusion
Dividing retirement benefits in a divorce can be a challenging process. However, it is an important aspect of asset division that should not be overlooked. If you are going through a divorce and have questions about dividing retirement benefits, it is important to seek the advice and representation of an experienced family law attorney. With the right legal assistance, you can ensure that your retirement benefits are divided fairly and that your financial future is protected.