Quite a few Maryland residents are employed by the federal government. When divorcing such an individual, one may find dividing assets a bit of a challenge, as how benefits and retirement funds are split is not as straightforward as it is for those who work in the private sector. Here are a few things to know about asset division when divorcing a federal employee.
What happens to benefits?
There are one may be able to keep and others that will lapse. For instance, the former spouse of a federal employee is not eligible to keep dental or vision insurance. One may keep existing long-term care insurance. One may also continue with the same medical insurance plan temporarily if spouse equity requirements are met.
What happens to the annuity/savings accounts?
Much like retirement accounts for those working in the private sector, annuity and federal savings accounts may be divided as part of the divorce settlement. How that works out exactly will be different for every couple. As far as the annuity goes, a former spouse may also receive the benefit after their ex’s death if they remain listed as a beneficiary; however, that benefit may be stripped if he or she remarries.
If , the sooner one seeks help negotiating settlement terms, the better. Keeping access to certain benefits and getting a fair share of retirement savings can prove a challenging task and needs to be approached in the right way. A family law attorney with experience handling divorce cases involving the division of federal benefits can help one achieve a fair and balanced settlement in the end.