Counsel
for the non-participant spouse cannot adequately represent his or her
client without thoroughly understanding the retirement plan benefits
being distributed in the divorce action and all of the possible contingencies.
Few family law practitioners are fully versed in this complicated and
often risky area of the law.
Traps
for the Unwary
The most hazardous part of any settlement involving retirement assets is negotiating
and structuring the Property Settlement Agreement language dealing with the
deferred distribution of a pension. There are thousands and thousands of plans
and each is unique in its provisions. Also, unexpected events, such as the
death or early retirement of the member spouse can have profound negative impact
on the non-member spouse, unless these issues are addressed in the settlement.
Contingencies—no
legal boilerplate works
Besides the issue of survivorship, pension plans have contingent provisions
(i.e., supplemented early retirement benefits, cost of living adjustments,
payment increases provided by post-retirement, renegotiated union contracts,
etc.). Many public plans allow participants to make contribution withdrawals
at the time of their retirement that will reduce their monthly lifetime pension.
There is a strong possibility that private pension plans, as we know them,
will disappear in the next 20 years. Your negotiations and settlement language
must address all of these contingencies.
Avoid
Malpractice—use an expert
Knowledgeable family law attorneys know they cannot handle these matters without
expert assistance. To protect themselves and their clients in this complicated
area of their practice thousands of attorneys have relied on LawDATA, Inc.
to avoid the hazards inherent in negotiating and drafting settlement language
that anticipates a QDRO or a public plan Domestic Relations Order. If your
practice includes family law you should be doing the same. Let us draft the
language dealing with deferred retirement asset distributions for your Property
Settlement Agreements. |
