Is Kentucky TRS retirement for teachers marital property in a Louisville or Jefferson County divorce? How will a Kentucky TRS teacher’s retirement account be handled in your divorce?
We are often asked about the disposition of a teacher’s retirement account at Kentucky TRS. The Kentucky Teacher’s Retirement System was established in 1938 to provide disability, retirement and survivor benefits for Kentucky teachers, as well as their spouses and children. Kentucky TRS replaces Social Security benefits unless the teacher has become eligible for those benefits through a job before, after or outside of their teaching career.
Those who are receiving Kentucky TRS and who are also receiving Social Security (on their own or as a part of a spouse’s benefits) may see part of their benefits offset (reduced) by a government pension offset or the Windfall Elimination Provision.
Is Kentucky TRS retirement for teachers marital property in a divorce? Yes. This is different from Social Security benefits. In Kentucky, primary Social Security benefits of an employed spouse are considered to be the separate property of that spouse. So if both spouses were employed during the course of their marriage the teacher would usually have to divide their Kentucky TRS retirement for teachers marital property with their spouse, while their spouse is able to keep all of their own Social Security benefits.
Kentucky teachers should consider a prenuptial agreement if they are considering a marriage, and a post-nuptial agreement if they are already married. While it does not seem fair that the teacher has to give up half of their accumulated retirement in a divorce and their spouse gets to keep their own Social Security benefits in addition to their marital property share of the Kentucky TRS retirement benefits that is the present law.
This is why it is important to work with the experienced divorce and family law attorneys at Dodd & Dodd. We will work with you to provide sound counsel and develop a prenuptial or post-nuptial agreement to protect your retirement as a teacher. If you are considering a divorce, it is important to understand what makes Kentucky TRS retirement for teachers marital property in a divorce and work with our proven legal team to develop appropriate strategies to accomplish your goals.
We invite you to review the strong recommendations of our former clients and contact us or call 502-584-1108 to schedule an appointment with one of our experienced divorce and family law attorneys.
