If you’re going through a divorce in Maryland, you’re going to have to go through the process of dividing up all of your marital assets. One very tricky area of separating assets is when it comes to retirement accounts like pension plans. In most cases, these plans are considered a marital asset that must be divided between both parties.
Must you give up your pension plan?
As part of the legal property division for a divorce, a pension plan is typically considered a marital asset that both parties are entitled to. However, no law states that you cannot make a different arrangement with your former spouse about what happens to your pension plan. Due to the complexity of splitting up a pension plan, your former spouse may agree to an alternative solution that is much quicker and simpler to do.
What is an alternative solution?
The alternative solution that you offer will be unique to your individual situation. You need to start by determining what the cash value of half of your pension plan would be so that you know what your spouse would be entitled to. Then, you can start looking at other marital assets to figure out an alternative. For example, you may find that your spouse’s stake in your pension is equal to your stake in your marital house. One alternative suggestion you can offer is giving your former spouse full ownership of the marital house in exchange for him or her giving you full ownership of your pension.
Going through a divorce can be a very complex and time-consuming process. What it comes to dealing with your pension plan, you want to ensure that you’re setting yourself up for the best possible financial outcome. To help simplify the division of your marital assets during your divorce, consider offering your former spouse an alternative solution.