What happens with a couple’s retirement plans and pensions in a divorce can have considerable impacts. Today, we’ll go over some of the basics of how such assets are treated in divorces here in Virginia.
The portions of retirement plans and pensions that either spouse accrued during the marriage are usually considered marital property here in Virginia. So, in most cases, they will be eligible for division.
Now when deciding how to divide any marital property in a divorce, Virginia courts use the equitable division system. This involves a court considering a range of different factors to decide what division would be fair and equitable.
Given this, Virginia courts have a great deal of discretion in how they can divide marital property in a divorce. However, there is a special limit to this discretion when it comes to pensions and retirement plans. Specifically, state law restricts how much of the marital property portion of a pension or retirement plan of one spouse can be awarded to the other spouse. Courts are not allowed to grant more than half of this portion to the other spouse.
So, how retirement plans and pensions are divided in Virginia divorces can be impacted by a wide variety of factors and these assets raise some special rules and concerns in divorces. Given this, divorce property division matters regarding these assets can have a high level of complexity. Skilled property division attorneys can help individuals stand up for their interests and rights when navigating such matters.