You’ve spent years contributing to your pension, planning for a secure retirement. Now that you’re facing a divorce, you might wonder whether you will have to share what you’ve worked so hard for over the years. Does it mean losing half of your pension to your ex?
Understanding Maryland’s divorce laws can help you prepare for what lies ahead and make informed decisions in such a situation.
Pension can be a marital or separate property
In Maryland, the portion of your pension earned during the marriage is considered marital property, meaning it’s subject to division during a divorce. However, the portion earned before the marriage is separate property and remains yours. Drawing this distinction can sometimes be complicated, depending on the unique aspect of each case.
Marital property is subject to equitable division
All marital assets in Maryland are divided fairly but not necessarily equally. As such, your spouse may be entitled to a portion of your pension. The court has several options for going about this. Your spouse may receive a share of the retirement benefits when you retire, a lump sum based on the present value of their share or other marital assets of equal value.
Negotiating your alternatives
You can negotiate an agreement with your spouse if you want to keep your pension untouched. For example, you might offer them a larger share of other marital assets, such as savings or property, or even personal assets of similar value in exchange for retaining your full pension.
Dividing a pension can significantly affect your retirement plans, and understanding your rights and options is crucial to safeguarding your financial future. Seeking qualified guidance can help you navigate this and other complexities of property division in a divorce while safeguarding your interests.
