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Retirement Income

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By Susan K. Smith, Attorney at Law

Published:  July 17, 2004

Pensions and 401K's.

Defined contribution plans (401-K's, i.e.) and defined benefit plans (pensions, i.e.) are considered marital property and are subject to assignment by the Court. See, e.g. Stamp v. Visconti, 51 Conn. App. 84 (1998) (wife's 401K should have been included as a marital asset even though completely funded by her employer). Qualified Domestic Relations Orders ("QDRO's") are typically ordered by the court in connection with the final decree, and when issued, requires the plan administrator to transfer all or part of a plan's interest from one spouse to another. If transfers are made under a QDRO, they are not treated like withdrawals and therefore are not subject to a penalty.

In Bender v. Bender, 258 Conn. 141 (2001), the Supreme Court ruled that unvested pensions are marital property and can be subject to division.

Social Security

You can collect social security based upon your divorced spouse's income if (1) you were married for at least 10 years; (2) you have been divorced for two years; and (3) your divorced spouse is eligible to receive benefits. The two-year waiting period does not apply if the divorced spouse was receiving benefits prior to the divorce. There is no impact on the benefits of the spouse against whose account the divorced spouse collects benefits. The right to spousal benefits is lost if you remarry.

Last modified:  August 26, 2004 - 03:06 PM


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