Is TRS retirement for Kentucky teachers considered to be marital property in a Louisville or Jefferson County divorce? How will a TRS Kentucky teacher’s retirement account be handled in your divorce?
We are often asked about the disposition of a teacher’s retirement account at TRS Kentucky . The Teacher’s Retirement System in Kentucky was established in 1938 to provide disability, retirement and survivor benefits for Kentucky teachers, as well as their spouses and children. TRS Kentucky retirement will replace a teacher’s Social Security benefits for the years covered by the term as a Kentucky teacher.
Those who are receiving TRS Kentucky benefits in addition to Social Security retirement- either based on their own benefits or the benefits of their spouse – may experience a reduction in Social Security benefits associated with the years covered by TRS Kentucky benefits based upon the federal Windfall Elimination Provision.
Is TRS retirement for Kentucky teachers marital property in a divorce? Yes. This is different from Social Security benefits. In Kentucky, the main Social Security retirement benefits of a working spouse will remain the separate property of a former spouse. This causes a potential challenge fore a Kentucky Teacher with TRS benefits in a divorce: the non-teaching spouse is able to keep all of their own Social Security benefits, while the spouse who was a teach will have to divide their TRS benefits during property division.
This is why Kentucky teachers should seek the advice of Dodd and Dodd Attorneys, PLLC regarding a prenuptial agreement before they get married, or a post-nuptial agreement if the teacher is already in a marriage. It just doesn’t seem fair that a Kentucky teacher has to allow half of their retirement to be divided in a Kentucky divorce, while their spouse gets to keep all of their own Social Security benefits.
Your experienced Dodd & Dodd divorce and family law attorney will work to help identify your risks and prepare and present the appropriate prenuptial or post-nuptial agreement to protect your TRS benefits as a Kentucky teacher.at Dodd & Dodd.
Any Kentucky teacher, past or present, must give consideration to the impact of a divorce on their TRS retirement benefits. We will work with you to develop and implement the right strategies to protect all you’ve worked so hard to develop, as well as your goals and objectives for your Louisville-area divorce.
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.
