Do you get the pension at divorce or when your ex retires?
/Divorce can be a complex process, especially when it involves the division of assets like pensions. A recent legal case, "In re Marriage of Belthius," sheds light on an interesting aspect of this division – how a spouse’s career advancements after separation can still impact the divorce settlement.
Understanding the Time Rule: To understand this, we need to know about the "time rule." This rule is a formula used in divorce cases to determine how pensions are divided. Simply put, it considers the time of the marriage in relation to the total time of pension accumulation to calculate what share each spouse gets.
The Belthius Case Breakdown: In the Belthius case, a couple divorced, and their settlement included dividing the husband’s LAPD pension. However, after they separated, the husband continued to work and even got promoted, which increased his pension. The question arose: should the ex-wife benefit from these increases that happened after they separated?
Court’s Decision – A Game Changer: The court decided that, yes, the ex-wife was entitled to a share of the enhanced pension. Why? Because the husband's advancements were partly due to his efforts and experiences during the marriage. This means that even after separating, the contributions made during the marriage played a role in his future success.
What Does This Mean for You?: If you or your spouse have a pension and are going through a divorce, this case shows that not just the pension value at the time of separation, but also future increases due to career advancements, can be considered in the settlement. This is especially relevant for long-term marriages where career growth contributes significantly to pension benefits.
Key Takeaways:
The Value of Pensions Can Change: Pensions aren't just valued at the time of separation; future growth can impact their worth in a divorce settlement.
Long-term Contributions Matter: The case highlights how contributions during the marriage are significant, even affecting post-separation advancements.
Seek Expert Advice: Pension division in divorce can be complex. It's crucial to get expert legal advice to understand your rights and entitlements.
The Belthius case is an eye-opener for many undergoing a divorce involving pension division. It's a reminder that the efforts and contributions made during a marriage have lasting impacts, even influencing future financial benefits. Understanding these nuances can help you navigate your divorce settlement more effectively.