For people their retirement accounts such as 401Ks, IRAs, or thrift savings plans (TSP”) and benefits such as pensions are their largest assets that may be divisible in a divorce action. For most government, military and private sector employees that maintain a pension it is important to understand that the pension may be divisible in the divorce even though it is not yet earned or not yet in payout status.

Additionally, there are certain benefits that are afforded retirees and their spouses through pensions. For example most government, military and some private pension plans, a retiree can elect to pay for a survivor annuity by receiving a lower monthly benefit during their retirement so that their survivor can receive a monthly benefit after their death. If they choose this option, they will decide on a whole percentage of their benefit, between 10% and 100%, to go to their survivor. The benefit amount will be based on this percentage, the individual’s age, and the age of their survivor at their disability retirement date. Note that a person can name more than one survivor, though the Internal Revenue Service (IRS) may limit the amount of benefits that can go to a non-spouse survivor.

Be aware that individuals who are divorced and have an Qualified Domestic Relations Order (QDRO) or Court Order Acceptable for Processing (COAP) on file must have their benefit paid as directed by the QDRO, which states that following divorce, if a member’s retirement benefit is part of a marital property settlement, the court will make a payment of part of the member’s benefit to the former spouse.