Memphis Injury Lawyer Blog

It was difficult for the Tennessee family law courts to equitably divide unvested retirement benefits. An unvested retirement benefit is a retirement asset that has been partially or completely earned but that is not yet able to be distributed due to the terms of the retirement plan document itself. In Cohen vs. Cohen the Supreme Court of Tennessee determined that an unvested retirement plan should be classified as marital property which is therefore subject to division by the Court.

The Court noted the highly inclusive nature of the language defining marital property in Tennessee law: i.e. Marital property means all real and personal property, both tangible and intangible acquired by either or both spouses during the course of the marriage up to the date of the final divorce hearing. It was decided that the legislature intended that homemakers undergoing divorce should not be deprived of the opportunity to share in property that, although not fully vested, is in many cases the most valuable asset accumulated during the course of the marriage.

Neither spouse is necessarily entitled to a share of each item of marital property. Rather the law requires only that the overall division of all marital property be equitable to both parties. Furthermore, the goal is an equitable division, not necessarily an equal one.

In order to secure your future and the security of your elder years, it is critical to engage the services of a skillful and experienced family lawyer. The division of retirement benefits is not a solitary function. Decisions concerning these financial resources must be considered together with one's financial goals and assets as a consolidated plan. So, it is vital that when involved in a divorce, one must protect that which matters most: your future peace of mind.