What are the best strategies for managing Kentucky TRS retirement assets and Social Security in a Louisville divorce? How will the Kentucky TRS retirement for Kentucky teachers be handled in a Louisville divorce case?
The division of Kentucky TRS or KTRS retirement assets in a Louisville divorce case, as well as other public retirement vehicles such as KPPA, Police Officer (PO) and Fire Fighter (FF) retirement programs, is a common issue in a Louisville divorce. Each program has their unique methods for establishing the division of the retirement asset as part of the marital property division in a Louisville divorce case.
The Kentucky State Teacher’s Retirement System or KTRS was established in the early 1900’s to provide retirement, disability and survivor benefits for Kentucky educators, their spouses and children. The marital interest in a Kentucky TRS retirement account is divisible during the marital property division portion of a Louisville divorce.
How does KTRS affect Social Security? Usually, Kentucky TRS replaces normal Social Security retirement benefits unless a teacher has earned eligibility for these benefits through a spousal benefit, or through work on a job before, during or after their teaching career.
It is important to give consideration to the Kentucky “Windfall Elimination Program” when considering the division of Kentucky TRS assets in the presence of a Social Security benefit.
There is another important issue associated with Kentucky TRS retirement assets and Social Security in a Louisville divorce. Here in Kentucky, the primary Social Security benefits of an employed spouse of a teacher are considered to be the separate property of that spouse. In this example, when both of the employed spouses contributed to or qualified for retirement (STRS and Social Security severally) the teacher would be required to divide their own Kentucky TRS retirement with their spouse, while their spouse is able to keep all of their own Social Security benefits.
This may not seem fair to many people, but it is the present law in the State of Kentucky. It is possible to protect these interests in a prenuptial (prior to the marriage) or postnuptial agreement (after the date of the marriage) and it is a prudent step to consider for all Kentucky teachers. Planning can be an important component of preparing for a potential divorce if you are a Kentucky teach with Kentucky TRS assets and your spouse has no other retirement assets than Social Security. If that spouse has their own 401(k)(s) or other retirement assets they may also be divisible during the property division portion of your divorce case. This is why it is so important to seek the advice and counsel of the proven, experienced Divorce and family law attorneys at Dodd & Dodd.
Learn specific strategies about Kentucky TRS retirement assets and Social Security in a Louisville divorce. 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.
