Divorced spouse rights to participant's plan benefit
| What rights does a divorced spouse have with respect to a participant's plan benefit? |
|
In general, Congress was of the view that a retirement plan should be just that, i.e., available for retirement rather than current consumption. And so, Congress provided that, in general, a participant may not assign a participant's plan benefit to satisfy a claim of any creditor, but an exception exists in the case of a divorce. If the plan is the subject of a qualified domestic relations order - one issued by a state court judge providing for child support, maintenance or the division of a plan benefit - a spouse may receive a benefit under the participant's plan. |
