Division of Marital Property
___________________
In accordance with KRS 161.700(2), any benefits due you from KTRS are not classified as marital property or as an economic circumstance during the Division of Marital Property in the event of dissolution of marriage. However, in the past, some courts may have applied this statute in conjunction with KRS 403.190(4), which is found in the KRS chapter on dissolution of marriage and contains general marital property provisions.
|
 |
|
Under KRS 403.190(4), some courts may have determined that if your spouse has a retirement annuity or account, all or a portion of your spouse's annuity or account may also be exempt as marital property. Some courts may have further an equalization of benefits pursuant to this statute that could have exposed a portion of your retirement benefits to division as marital property, depending upon how the court applies KRS 490.190(4), if at all, in conjunction with KRS 161.700(2).
KTRS receives little feedback from the parties and the various local Family Courts and thus currently does not have a clear picture of what is happening with this issue across the Commonwealth. However, a recent Kentucky Court of Appeals case, Shown v. Shown, 2005 S.W.3d (2004-CA-000988-MR), indicates that members’ retirement allowances are not to be classified as marital property and subject to division during divorce proceedings regardless of KRS 490.190(4). This opinion of the Court of Appeals is now before the Kentucky Supreme Court (Docket No. 2005-SC-855) where that Court can either affirm the decision of the Court of Appeals or overturn it. Until the Supreme Court rules on this issue, and it could be months after the publication of this Summary Plan Description, the Court of Appeals case will likely serve as legal precedent for the local Family Courts.
Regardless of a court's interpretation of the foregoing statutes, KTRS can never, under any circumstances, accept a Qualified Domestic Relations Order ("QDRO") as KRS 161.700(1) expressly prohibits the assignment, attachment or garnishment of members' retirement annuities except for the payment of child support. It is highly recommended that if you have questions regarding your retirement and its treatment in the event of dissolution of marriage, that you seek competent legal advice from an attorney of your choice. |
|
