Many couples choose to divorce thinking property is primarily defined as their belongings, cars, and the family house. However, the retirement pension earned during marriage is also a source of property that is subject to division — especially in Oklahoma.
In this state, a pension must be split using equitable division, as long as the pension, or portions of the pension, are earned during the marriage — and prior to separation.
A Tulsa divorce attorney is your best resource in assisting you through this process.
Separate vs. Marital Property
Oklahoma divides property into two categories when distribution is necessary. Property is either separate or marital property, sometimes referred to as “community property.”
Separate property is property that each spouse brings into the marriage. For example, a home purchased previous to marriage can be considered separate property, with a few exceptions. Other separate property classifications include any inheritance, personal belongings, and gifts from third parties.
Marital property is classified as assets that are attained during marriage and prior to separation, regardless of how title is held. This includes the family home, income, furniture, pensions and vehicles, etc. Only marital property is subject to division during a divorce.
A divorce attorney can aid in identifying what constitutes marital verses separate property.
Rights to Marital Property at Division
Oklahoma’s system for dividing marital property is called “equitable distribution.” In the state statutes, equitable distribution is defined as a “just, fair, and reasonable division between items.”
The court is not required to divide assets equally, only fairly. When making this division, courts consider how to divide on a case-by-case basis. The primary factor courts consider when dividing property is the parties’ conduct and efforts that contributed to attainment of property.
This factor is important because it relates directly who contributed to the growth and wealth of the marital estate. It is fair to give that spouse more, and the non-contributing spouse a greater amount of alimony.
Qualified Domestic Relations Orders
Pension and retirement accounts can only be divided using a qualified domestic relations order, also known as a “QDRO.” The QDRO is part of the divorce process — your divorce attorney will prepare this document for you. Then the judge will have to issue an order to the department responsible for the pension, and direct the pension to be divided.
The pension must meet certain guidelines to qualify. However most state pensions will automatically qualify. Once the judge orders the division of the pension, the company responsible must follow the exact instructions in the QDRO when dividing.
Monthly distributions can be requested where the spouse awarded part of the pension will receive monthly payments until the other spouse quits and withdraws the contributions.
Lump sums are also assigned and allow the spouse awarded the pension to receive a flat amount at the time the other spouse quits and withdraws. This is a future payment.
Your divorce attorney can help you decide which plan works better for you. A QDRO also allows your divorce attorney to request both monthly payments and a lump sum.
For more information on QDROs, please click here.
Similarly, your attorney may ask you if you are aware of your spouse’s Social Security benefits. To find out more about these potential awards, you can click here.
Free Consultation with a Tulsa Divorce Attorney
A Tulsa family divorce attorney can walk you through the entire divorce process, as well as expertly explain how a pension or retirement plan is properly distributed.
Contact an experienced Tulsa divorce attorney when you need to go through the Oklahoma divorce process.
For a free confidential consultation, call now: 918-924-5526.
