Dividing Retirement Plans in Kansas Divorce Cases

Married couples who have decided to divorce often focus on which spouse, if any, will retain ownership of the family home or car. It is important to remember that property division involves all types of assets acquired during the course of a marriage, including retirement plans that you don’t expect to access for many years to come. An experienced Kansas family lawyer can examine pension benefits, Individual Retirement Accounts, 401(k) plans and other retirement assets in pursuit of a resolution that protects your long-term interests. 

Some retirement benefits are non-transferable at the time of divorce, while others trigger taxes and/or early-withdrawal penalties if cashed out prematurely. Frequently, courts will issue a Qualified Domestic Relations Order (QDRO) setting forth a divorcing spouse’s right to receive benefits at a later date. In many cases, a QDRO offers security without forcing an immediate taxable distribution. However, whether this is a suitable option depends on the particular type of asset involved. Some couples agree to a lump-sum settlement in exchange for a party’s agreement to give up their interest in their spouse’s retirement assets.

QDROs and other legal instruments concerning the division of retirement assets are often created during the divorce proceeding. In a 2023 case however, the Supreme Court of Kansas enforced the right of an ex-wife to obtain a share of her former husband’s benefits, even though an order or division document was not prepared at the time the marriage was dissolved. The In re Marriage of Holliday decision stated the decree granting Tamara Holliday half of what Jon Holliday accumulated in his Kansas Public Employees Retirement System (KPERS) account during their marriage was not dormant just because more than a decade had passed. 

Once Jon Holliday retired and his KPERs benefits became payable, the Court held that Tamara Holiday was legally entitled to claim the share she had received in the divorce. While this decision is a strong affirmation of a spouse’s rights to retirement account funds in an equitable distribution analysis, making an appropriate arrangement at the time of the marriage dissolution can avert uncertainty down the road. 

Our firm can identify divisible retirement assets and prepare the necessary documents for negotiation and submission to the court, whether that includes a QDRO or some other legal instrument. In cases involving KPERS and other public plans, we have a thorough understanding of the specific rules pertaining to these matters. 

At The Henry Law Firm P.A. in Overland Park, we advise Kansas going through a divorce on the division of retirement assets and other relevant concerns. For a consultation, please call 913-381-5020 or contact us online.