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What can the money from the division of a pension be spent on?

by | Jan 30, 2017 | Division Of Pensions

When it is time for spouses to discuss divorce legal matters, the conversation will either go smoothly or turn into a heated dispute. With there often being so much to discuss, and both parties having their own thoughts on who should get what and how much, it is not surprising that many divorcing couples argue and disagree. This tends to be the outcome when people address the topic of property division, specifically the division of pensions.

Pensions are typically considered marital property if they were earned during the marriage. This is something that spouses may not agree with, but this is what many states classify a pension as, so they have no choice but to divide it if that is what the court decides. Once it is determined if the pension will in fact be divided, spouses may be wondering if they are limited to what they can purchase with this money, and the answer to this question is no.

If a spouse is awarded money in the divorce, this money can typically be used to purchase whatever they would like. Unlike child support, which must be spent on the child for various things like clothes, education and recreation, you are not limited with what you can spend the money from the pension on. Should you receive alimony, there is also no restriction on what your monthly payments can be used for or how much can be spent.

Divorce legal matters are not always the easiest to deal with. People tend to get pretty nasty when it comes to money and property, so you should not expect it to be any different when you and your spouse are discussing the division of pensions. Hiring an attorney to be present during the conversation and assist with the divorce process could prove to be wise.

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