During a divorce, it’s important to focus on how your assets will be divided such as homes, vehicles, savings, and personal valuables. However, many couples often overlook the importance of the division of retirement benefits in Kansas. Retirement accounts represent one of the largest assets, second only to real estate. This significant financial resource can sometimes be forgotten if retirement seems far away at the time of the divorce.
The division of retirement benefits in Kansas should be made a priority when talking about asset division. It is important to ensure that these benefits are split fairly to protect the financial futures of both parties post-divorce. Our team at Kansas Legal Group is highly knowledgeable about the specific rules Kansas has for dividing retirement benefits. We work closely with clients to make the divorce process smoother, striving to achieve a financial outcome that sets everyone up well for the future.
How Are Retirement Benefits Divided in a Divorce?
The division of retirement benefits in Kansas generally depends on the value accumulated in these accounts during the marriage. This involves intricate calculations, often done alongside the division of other marital assets.
Consider this scenario: suppose you were married for 10 years, but the retirement accounts have been growing for 30 years. Only the contributions made during those 10 years of marriage are considered marital property and are eligible for division. For example, if a retirement account accrued one-third of its value during the marriage, and if the court opts for an equal division, each spouse would receive about 16.65% of the account’s total current value.
However, it’s important to understand that in Kansas, dividing marital property isn’t always about splitting things 50/50, but rather about what’s fair, or equitable, as determined by the court. This means the way retirement benefits are divided can vary significantly based on the unique circumstances of each divorce.
Pensions
With pensions, which are a common type of retirement benefit that need special consideration, couples can either choose to calculate the current value of the future payments of the pension or apply a time rule formula. This formula decides what percentage of the future payouts each spouse will receive.
Once everything is settled, the division of retirement benefits in Kansas is generally carried out using a Qualified Domestic Relations Order (QDRO). This legal document, often crafted with the help of a financial expert, makes sure each party gets their rightful share as stated in the divorce decree. The next section provides more insight into how QDROs work and their role in the division of retirement benefits in Kansas.