Survivor benefits can be a godsend when a spouse dies. In Georgia, navigating these financial issues often means understanding crucial aspects of one’s retirement account and pension, especially during divorce proceedings. Family situations get even more complicated when a spouse dies or retires. In those cases, the rules for distributing benefits no longer apply. In this article, we will outline how survivor benefits work, especially in relation to divorces in Georgia.
Georgia’s Eligibility for Survivor Benefits
Georgia allows survivor benefits to come in as an economic aid after the death of a spouse; however, such eligibility is not automatic. For this to happen, the deceased must have initiated such benefits through his work or pension plan before retirement. Eligibility is based on a person’s marital status and selected benefit options at various points during their career. Divorce can further cloud this matter unless settlement negotiations spell out terms. “The decision to elect survivor benefits at retirement is an irrevocable one,” says lawyer Allen Russell of the Atlanta Divorce Law Group. When these benefits are not chosen by a spouse when so eligible, the surviving spouse may be left without support.
How Divorce Affects Pension and Retirement Accounts
Divorce normally results in a reevaluation of property, pensions, and retirement accounts. It usually implies that each spouse is entitled to a portion of the retirement benefit accruing during the marriage. The courts divide property based on equitable distribution. However, this becomes tricky when dealing with survivor benefits because they are dependent on prior elections by a single spouse, usually the husband. Without clear divorce-related language, one spouse may be left without access to the funds. For retirees, their designations of survivor benefits should reflect court orders or agreements that result from a divorce.
The Process of Electing Survivor Benefits in Georgia
Employees in the state of Georgia can elect survivor benefits to support their spouses during their retirement. This is often left to the husband to provide; however, a wife may also name these benefits from her own place of employment. Retirement packages and pensions have forms available to make any election process fairly easy. Once elected, though, survivor benefits are not changeable after retirement has begun. If divorce happens before retirement, an order can be filed, which can disallow a previous spouse from receiving payments. Another person can be named; this is known as an Alternate Payee, to whom the funds will be distributed upon death. This helps so one can maintain control of benefits in the event of divorce.
Calculating Survivor Benefits in Georgia
The survivor benefit calculations may be different from any other type, with different factors affecting pension value and life expectancy, among other factors related to a spouse. In most cases, assets are divided at divorce settlement, and pensions are usually included. For example, assuming the husband’s pension is $1,000,000,000, and the wife is entitled to half, she could get $500,000 a month as a beneficiary if he retires or upon his death. However, these payments could diminish depending on a prior agreement or election. Mortality tables are also considered when determining future payments. The amount usually derived from an affirmative decision largely depends on calculations of life expectancy and other projections to ensure that, over time, the surviving spouse remains viable within the law.
How a Family Law Attorney Can Help Secure Benefits
Family law attorneys are quite valuable when it comes to dividing up survivor benefits at the time of divorce. These lawyers may be able to assist the parties in finding all applicable retirement accounts and in dividing such benefits as a pension or a 401(k) plan. Without proper legal counsel, one of the spouses may surrender these valuable financial assets when a divorce is filed. An attorney will bargain for a clear agreement in order to preserve the payments of future benefits, especially in those complex pension structures. Attorneys will also assist in filing the QDROs, which implement the state’s award of retirement money. This ensures equity and can perhaps prevent the grieving spouse from financial emergencies if he or she has survived. This will ensure lifelong security.
Conclusion
Survivor benefits can make all the difference in a future of financial stability following divorce or death. In Georgia, these benefits carry significant weight in retirement plans and settlement agreements. Whether it is a pension election or taking care of all legal protections with a family law attorney, it is all about preparing for life’s uncertainties. Decisions made today will determine the security of tomorrow for you and your loved ones. Do not wait until it is too late to follow up on what matters most.
