In times of divorce, dividing assets such as your house, cars, and bank account are not the only things that couples are facing. There are other types of assets that you may not realize are subject to asset division in New York. Below, we discuss how retirement funds are split between a divorcing couple.
Retirement Funds Are Marital Property
Couples spend years preparing for their golden days. If a couple decides to divorce, retirement funds are considered marital property and are subject to asset division. New York follows an equitable distribution rule, so judges in divorce court will strive to ensure that each party obtains a fair share of retirement funds and other types of marital property.
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The Majauskas Formula
So, how exactly is it decided how much one spouse gets of their ex’s retirement funds? The most commonly used method is the Majauskas formula, which was established by the State Court of Appeals in the landmark Majauskas v. Majauskas case.
Essentially, the formula works out that a non-titled spouse is typically entitled to 50% of the retirement benefits earned during the course of the marriage.
For example, if one spouse accrued 30 years of service/work but was only married for 10 years of that service, their ex would be entitled to 50% the retirement funds accrued during 10 out of the 30 years serviced.
The Majauskas formula is not the only means of dividing retirement funds in a divorce. Negotiations and settlements are also a common practice used by divorcing couples. An experienced family law attorney can help negotiate on your behalf so you can get the best outcome possible.
Helping You Obtain Your Fair Share
The attorneys at Wisselman, Harounian & Associates are here to help with your asset division of retirement funds during a divorce. We are here to protect your best interests, to help ensure that you are financially secure and can obtain your fair share of assets in a divorce.
Contact Wisselman, Harounian & Associates at (516) 406-8500 to discuss your legal options. If you are social distancing during the coronavirus epidemic, our legal team is offering free phone consultations as well as video conferencing and remote legal services.