Your pension might be the biggest asset you own after your home. Many people worry about losing part of their retirement savings during a divorce. Here’s what you need to know about the pension division in Pennsylvania.
What makes a pension marital property?
In Pennsylvania, the money you put into your pension during marriage becomes marital property. This means your spouse has a right to claim part of it. But here’s the good news: Any money you added before marriage or after separation stays yours. The court will determine when you earned the pension benefits to decide what to split.
How courts split pensions
Pennsylvania judges look at several key facts to divide pensions fairly:
- How long have you were married
- Your financial situation
- If your pension has fully vested
- What your pension is worth now
- How taxes will affect the split
The judge will then pick one of two ways to divide the pension. They might split it right away or wait until you retire. Your specific case will determine which method works best.
What you must know about pension division
Before you agree to split your pension:
- Most plans need a special court order called a QDRO
- Military pensions follow different rules
- Taking money out early can lead to penalties
- Future raises in benefits could affect both parties
A local family lawyer can help protect your pension and other property rights after a divorce. Getting help early helps you avoid costly mistakes. Your choices about your pension today will affect your retirement money. Talk to a lawyer who knows Pennsylvania divorce law to protect your future.
