My Retirement

Recent consult question: I am getting a divorce and have been married for 18 years. I have been working and have a retirement that has been growing for 32 years. Does my ex wife to be get 50% of my retirement? I have worked really hard and she was a big spender and I do not think it is fair for her to get half.

Answer: The answer is yes and no. Your wife will not get 50% of your entire retirement. She will be entitled to 50% of the money earned in retirement funds from the date of marriage until the date of the filing the petition for divorce. Sometimes, the parties will agree to the 50-50 split at the time of the actual division of the account/asset. She will be entitled to the same growth on that amount of money that is 50% of the growth that you will also receive. It can be quite complicated and the courts often require a QDRO. You will want to enter into a QDRO, a qualified domestic relations order. This order is filed with the court and tells the various benefit administrators how to handle the splitting of that account. This QDRO is usually drafted by a specialized attorney who gathers all the information and then drafts the order for the parties at the end of the divorce. Most of the time, it is drafted after the divorce is final. If you have an account that you did not contribute to during the marriage, that account is 100% yours. And remember, if she was employed, you receive 50% of her contributions to her retirement during the marriage.