We are often asked “how much of my retirement will I lose in my Louisville divorce?” There are multiple forms of retirement assets which must be addressed during the process of a Louisville divorce. Retirement assets can be as straight forward as a 401(k) through work, or sophisticated retirement and pension systems such as the Teachers Retirement System or TRS Kentucky (teachers and educational workers) or the Kentucky Public Pensions Authority or KPPA (public employees).
To answer the question of “how much of my retirement will I lose in my divorce” we turn the discussion to marital property characterization and division. Here in Kentucky, generally speaking the assets and debts in a divorce will be classified as either the separate property of one of the spouses, marital property, or in some cases a blend of the two. Any asset or debt which was acquired before the date of the marriage or after the date of separation may be considered to be the “separate” property of one of the spouses. Any asset or debt acquired by either or both of the spouses during the course of the marriage will usually be characterized as marital property. Marital property is to be divided equitably between the parties. There are of course several exceptions to each of these, however, from the point of view of a retirement or pension the facts are usually quite clear as to how the asset will be characterized.
The short answer to “how much of my retirement will I lose in my Louisville divorce?” is often close to half of that portion which is determined to be marital property. There are absolutely strategies to protect your retirement or pension such as drafting a prenuptial agreement before the marriage, a postnuptial agreement during the marriage, or reaching a settlement through negotiation or mediation.
Planning is the key. You need to fully understand the nature of your own retirement assets as well as those of your soon-to-be former spouse. 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.
