Spouse's Entitlement to Employee's Retirement Plan

A non-member spouse has an interest in the community portion of the employee's retirement plan. It is an interest that needs to be identified and protected early in the divorce process.

Retirement plans are usually a couple's second largest asset, after their home. Dividing these plans can be complicated. Typical plans include PERS, or a company 401k plan. Older plans may have a defined benefit component. The way a plan is divided depends on whether the member is currently retired, the make-up of the plan itself, and whether any portion of the benefits are received because of the members disability.

The non-member spouse has two ways of obtaining his or her interest in the retirement plan: divide or buyout. A buyout involves determining the present value of the non-member spouse's interest and the member spouse paying that amount in cash at settlement. It raises important life-planning and tax questions.

Division of a plan is accomplished by a court order called a QDRO. They are standardized agreements between the parties and the plan on how the benefits to the non-member spouse will be paid.

If you have any questions, you may contact our Sacramento spousal support attorneys through this website or call us at 877-825-4832 and we will discuss your legal matters.

Our spousal support lawyers serve clients in Sacramento, California and surrounding areas, including Rancho Cordova, Davis, Roseville, Rocklin, Loomis, Folsom, Jackson, Placerville, Auburn, and Woodland, as well as Sacramento County, Amador County, El Dorado County, Placer County and Yolo County.