In many divorce cases, one of the primary considerations that must be made concerns retirement benefits – whether that be through a typical 401k or a pension or through federal Social Security benefits.
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal statute that sets the minimum standards for most voluntarily-established health plans and pensions in private industry, and it’s intended to protect those enrolled.
Under this law, many plans allow for a survivor annuity, meaning if the recipient of the retirement funds dies, the surviving spouse will continue to receive benefits under the plan.
Of course, the person designated as one’s survivor at the time the plan is formed may not be the same person to whom you are married when you die. In the event of a divorce, litigants need to carefully consider the necessary steps to either preserve their access to this benefit or remove the other spouse as a named beneficiary. Many times, a simple declaration in a divorce settlement is not enough. What may be needed is a qualified domestic relations order (QDRO), and even then, there may be certain stipulations.
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