{"id":351726,"date":"2020-07-24T14:07:12","date_gmt":"2020-07-24T19:07:12","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/family\/divorce\/can-you-keep-your-pension-in-a-divorce.html"},"modified":"2023-06-08T15:09:28","modified_gmt":"2023-06-08T20:09:28","slug":"can-you-keep-your-pension-in-a-divorce","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/family\/divorce\/can-you-keep-your-pension-in-a-divorce.html","title":{"rendered":"Can You Keep Your Pension in a Divorce?"},"content":{"rendered":"\n
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Can You Keep Your Pension in a Divorce?<\/h1>\n
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\n By Kellie Pantekoek, Esq.<\/a> | Legally reviewed by Bridget Molitor, JD<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Retirement accounts (like IRAs and 401(k)s) are often one of the biggest assets in a divorce. Many people going through a divorce worry about losing their retirement savings. State law or a prenuptial agreement determines the division of assets in a divorce.<\/p>\n\n <\/div>\n\n

If you are going through a divorce, you may be asking yourself, "Is there any way I can keep my pension?" The answer is yes. But only if you "buy out" any marital interest your soon-to-be ex-spouse has in the pension fund.
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How Does a Pension Work?<\/h2>\r\n

Pension plans are unique because they promise to give employees a set amount of retirement benefits for life. Pension plans are also called defined-benefit plans. Unlike defined-contribution plans such as 401(k)s, employees do not have a role in contributing to the funds. Instead, employers are responsible for making contributions on the employee’s behalf. Earnings on these investments then fund income for the employee during retirement.<\/p>\r\n

Traditional pensions are not as common as they once were. Today, public sector employers tend to offer pensions while private sector employers tend to offer 401(k)s as retirement plans. Common types of pensions include:<\/p>\r\n