Divorce can not only take a substantial emotional toll—it can also have a lasting impact on your finances. Separating your assets from your spouse's can be particularly tricky if your pension plan is at stake.

A pension earned by one spouse is generally considered a joint asset, which means it's subject to division in divorce. If a marital split is in the wor⛎ks, here are four ways to protect your pension benefits as much as possible.

1. Review the Laws of Your State

The first step of managing your pension while going through a divorce is knowing what the rules are in your state. Though a pension can be divvied up between spouses during divorce, that division isn't automatic. Your soon-to-be ex would have to make a specific request for a share of whatever you've accumulated before the divorce is finalized.

The spouse needs to file a document known as a qualified domestic relations order (QDRO) before any financial benefit from a pension or other retirement accounts, such as a 401(k), can be granted. 

In terms ☂of how much either spouse is entitled to, the general rule is to divide pension benefits earned during the course of the marriage right down the middle. Though that means your spouse would be able to claim half your pension, they are limited to what was earned during the course of the marriage.

If you were enrolled in a 澳洲幸运5官方开奖结果体彩网:defined-benefit plan for 10 year♒s prior to tying the knot, for example, any contributions you or your employer made on your behaꦺlf during that time wouldn't count toward the amount a spouse could seek in a divorce.

2. Check the Details of Your Pension Plan

When you're familiar with the rules governing the division of pensions in your state, the next step is to take a closer look at how the plan works. There are two key elements to focus on here. The first is to verify the method by which payments are distributed, and the second is whether the plan offers a survivor's benefit.

With a defined benefit pension plan, for example, you normally have a choice between receiving a lump-sum payment or a monthly annuity. If your plan features a 澳洲幸运5官方开奖结果体彩网:single-life payout and you choose the annuity option, the payments stop at your death. If the plan has a 澳洲幸运5官方开奖结果体彩网:joint-life payout, the payments continue for the life of the surviving spouse. 

It's important to understand how the plan works because it affects how you'll divide up the assets as part of the divorce. For example, if you have a single-life payout, your spouse is subject to whatever payment option you chose when you signed up.

If your plan offers survivor benefits, the easiest course may be to persuade your spouse to maintain that benefit, rather than seeking a lump-sum distribution. Your ex would have to include those benefits in their gross income but may be able to claim a 澳洲幸运5官方开奖结果体彩网:marital deduction for the 澳洲幸运5官方开奖结果体彩网:estate tax.

3. Propose an Alternative

Consider offering your spouse other assets if you don't want to hand over half of your pension. You may offer ownership of a mortgage-free home that you own together. Or consider buying a 澳洲幸运5官方开奖结果体彩网:life insurance policy equal to your pensi🥂on benefits naming yo💜ur ex as the beneficiary. In either case, you offset what your ex would get from the pension with something else of equal value.

Also, your spouse may have a pension or other 澳洲幸运5官方开奖结果体彩网:retirement assets to protect. If both of you have retirement accounts that are relatively similar in size, agreeing to walk away with what you already have can be a less time-consuming way to resolve the iss🌼ue.

4. Consult a Professional

It's always a good idea to consult a professional about your options regardless of your situation—whether you're 澳洲幸运5官方开奖结果体彩网:about to separate or are in the middle of divorce proceedings. There are individuals in the industry w🗹ho specialize in the division of assets when spouses split up. These people are called certified divorce financial analysts (CDFAs).

CDFAs are trained professionals who provide divorcing spouses with the expertise they need to manage their assets. They work in conjunction with lawyers to make important decisions about the division of assets.

When you consult a CDFA, they will gather all of your financial information, help you set a budget and key objectives, and determine any investment risk you may sustain. They will then review all of your assets, including retirement plans, and advise you about how the division of assets will affect your future and any tax implications you may face.

The Bottom Line

Getting divorced is stressful, and it pays to be smart about how you tackle the various financial issues involved. That's especially true when your retirement is on the line. Before signing off on a division of your pension, take time to understand what your rights are and what options you have for working toward a compromise that will satisfy both you and your future ex-spouse.

When in doubt, make sure you consult someone who can help guide you through the proceedings. Financial professionals, such as CDFAs, specialize in the 澳洲幸运5官方开奖结果体彩网:division of assets during divorce proceedings.