I work as a firefighter in Florida and have been accumulating a pension for the past 14 years. My pension annual payments are calculated based on my highest 5 years (AFC) average final compensation. Basically, this means the average of my 5 highest years' salaries. Since I still have about 15 more years to work, it stands to reason that my salary will still increase and therefore my annual pension benefit.
In the event of a divorce without a prenup, how will my pension benefits be handled or how much would be given to my wife?
Would it depend on time married, and if so, how long and what are the conditions for each different length of time?
I thank you for your service. Contrary to popular belief, the spouses are not "entitled" to half of the compensation accrued during the course of the marriage (although it may work out that way). What is true is that the compensation accrued during the marriage is considered a marital asset (not half, ALL). The court will distribute the marital assets under the principle of "equitable distribution." This is different than community property (each party gets half). Equitable distribution means the court will distribute the marital assets according to what the court determines is "fair." This could mean in an extreme that you get everything and she gets nothing or vice versa. A marriage settlement agreement is good in these situations because it allows the parties to determine how marital assets will be distributed as opposed to an unaffected judge
.
A valid prenuptial agreement or post-nuptial agreement is best. Contact a knowledgeable attorney in your area for specific advice on your particular set of circumstances.
I would suggest you contact a company that prepares Qualified Domestic Relations Orders as its product. Most of these companies will be familiar with your specific pension plan once you tell them the specific name of the plan. It is unlikely that your spouse will waive her "marital share" because it is so valuable or that the court will have good cause to award you more than 50%. Your spouse's benefit would be determined now under the plan terms. Some municipal plans are not subject to Qualified Domestic Relations Orders. You should be able to get the information from the "employer" to understand what happens upon divorce. You should hire a qualified divorce attorney soon.
Assuming you are married (I'm assuming you are) and depending on whether you and she were married in the last 14 years, then presumably she is entitled to "half" of your pension (this depends on other assets in the marriage). Assets are typically determined at the time of filing of the divorce, unless there is an agreement in place. Given the specific nature of your question, you'll want to contact an attorney in this area to answer those questions. Also, COLA benefits and DROP are considered in a divorce. Consult counsel.
