Retirement asset division is more complex than ever. Last week’s masterclass made that clear, as attorneys raised pressing concerns about new Social Security law changes, the division of government pensions, and ensuring clients receive their fair share.
The most common challenges I heard?
✅ New Social Security laws—how they impact settlements and income available for support.
✅ Gains, losses, and tracing marital vs. non-marital portions—ensuring clients get what they’re actually entitled to.
✅ Pre-marital contributions—how to identify them early and allocate them correctly to avoid disputes.
The Issue That’s Not Going Away
When a retirement plan predates a marriage, accurately separating marital from non-marital portions is essential—but it’s rarely straightforward. The challenge? Some plans don’t automatically adjust for gains and losses over time.
A Real-World Example
A former spouse was awarded $175,000 as of January 2021, plus gains and losses. If that amount had been invested in the S&P 500, it would be worth $222,234 today—a $50,000 difference.
Some plans track this. Others don’t. If settlements don’t account for these fluctuations, attorneys leave room for disputes, mistakes, and financial shortfalls.
What’s Next?
Based on the challenges raised, I’m developing a targeted masterclass covering:
🔹 Identifying plans that don’t track gains and losses
🔹 Protecting clients when the plan doesn’t do the math
🔹 Properly allocating pre-marital contributions
🔹 Structuring settlement language to prevent future issues
What’s Your Biggest Challenge?
If any of this resonates, drop a comment or send me a message. What part of this is giving you the most trouble?
And if you’re working on a case right now and need a second set of eyes, I’m happy to help.