How are retirement accounts, pension and social security handled in a Louisville Divorce? Dividing retirement in a Louisville divorce begins with the requirement for all retirement accounts such as 401k or pension plans to be divided based upon marital property laws. However, social security is considered “separate” property in a Louisville or Jefferson County divorce and cannot be divided in a property division settlement.
A recent case highlights the issue in our State’s laws:
A husband and wife, both attorneys, are divorcing. The husband has no retirement assets with the exception of his social security contributions over the years. The wife has established and contributed to a 401k retirement plan. The Court in their case ordered that the 401k would be divided between the two parties, but the social security was in fact the separate property of the husband. The wife appeals, pointing out the “unfair nature” of this division. The appellate court sided with the trial court, and for the time being social security will remain separate property in a Kentucky divorce.
The experienced divorce and family law attorneys at Dodd & Dodd have extensive experience in complex cases such as these. Dividing retirement in a Louisville divorce often requires a Qualified Domestic Relations Order or QDRO – a legal document ordering the division of a retirement account such as a 401k.
There may be other strategies to offset assets in cases such as this so that each party may retain their own retirement accounts while achieving a “fair and equal” division of their marital property. This is why it is important to work with our experienced Louisville-based family law attorneys. We invite you to review the strong recommendations of our former clients and contact us or call 502-584-1108 to schedule an appointment with one of our experienced divorce and family law attorneys.