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Will Divorce Affect My Pension

Divorce affects many aspects of a person’s life. Not only is it emotionally taxing and physically exhausting, divorce will also creep into your finances. This is because your marriage made everything you own and everything you acquired during your union part of the joint marital property. A divorce proceeding will divide those assets between both parties. 

Generally, a pension earned during a marriage is considered as part of the marital property. Upon divorce, the amount the pension payout earned during the marriage would be divided between you and your spouse. The courts will decide how to divide it, be it 50/50 or some other division.   

Rules relating to the division of pensions during divorce differ from State to State. But as a rule of thumb, some things you would have to consider are:

  • The length of your marriage
  • Whether or not you were working that job during the marriage
  • How many years you were married in correlation to how many years you were earning the pension

So if you worked the job for say, 20 years and for 10 of those years, you were married, the marital component of the pension would be 10 years. In this case, the equitable division is 50/50, which means that the 10 years worth of pension would be divided between you and your ex. They will be entitled to 5 years worth of that 20 years pension, so they would be entitled to 25% of the payout.  

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Managing Partner

Colorado Springs

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