How is a KTRS pension account handled in a Louisville divorce? The Kentucky Teachers Retirement System (KTRS) provides retirement, disability and survivor benefits for Kentucky teachers, as well as their spouses and children. KTRS manages pension funds for school districts, community colleges and universities here in Kentucky.
Retirement accounts can often be one of the most substantial assets in a Louisville divorce. If the KTRS pension account was opened after the date of the marriage the asset will in all likelihood be considered to be a marital asset, subject to equitable division. In general, all retirement account contributions and growth accumulated during the course of the marriage will need to be included as marital property.
A KTRS retirement account (and it’s benefits and distributions) and any other retirement assets such as a pension, IRA or 401(k) will be analyzed like all other assets to establish the amount(s) that qualify as a marital asset to be divided equitably during the process of a divorce.
The spouse of a KTRS member is often eligible to receive their marital property portion of the retirement account benefits accrued during the course of the marriage, even if the proceeds aren’t to be paid out until several years from now. This also applies to a termination refund or disability retirement allowance.
How will a KTRS pension account actually be managed during a divorce if it is considered to be marital property in whole or in part? Kentucky law has established specific requirements that must be followed in order to protect your interests while ensuring the KTRS pension asset is equitably divided.
The Kentucky TRS requires its own Qualified Domestic Relations Order or QDRO. The QDRO is a complex and technical legal document that provides detailed instructions on how a retirement asset is to be divided during a divorce. Our attorneys work to ensure everything is in order while protecting our client’s present and future interests.
Many people are surprised they won’t be able to keep all of their own retirement accounts after the divorce. If you and/or your spouse have a retirement account or pension plan you will need an experienced family law attorney who can provide sound advice and counsel. There may also be substantial tax issues associated with the division of a retirement asset in a divorce, and our attorneys can provide a substantive analysis to help ensure your interests are protected and decisions are sound from a legal and financial perspective.
Your experienced divorce and family law attorney from Dodd & Dodd can help to preserve and protect your rights, while providing sound insight and counsel during marital property division. If you or your spouse are considering a divorce involving a KTRS pension account we invite you to review the strong recommendations of our former clients and the legal industry and contact Dodd & Dodd or call 502-584-1108 to schedule an appointment with one of our attorneys.
Based in Louisville, we handle all divorce and family law matters, as well as post-decree modifications throughout Jefferson County and the surrounding region.
