• Divorcing spouses may receive a percentage of their ex's retirement benefits.One Dollar - variations of Crumpled dollar image by PaulPaladin from Fotolia.com
  
  Michigan residents going through divorce proceedings must determine who will receive various marital assets. They may also lose part of their retirement benefits in a split. Michigan residents who are aware of how their benefits can be affected after a divorce can better prepare themselves for a comfortable retirement.
  
  

What Accounts May Be Affected by Divorce?

• Divorce judgments in Michigan can affect any 401(k), 403(b), IRA or employee stock ownership plans. Qualified domestic relations orders, also known as a QDRO, must be honored by any retirement plan governed by the Employee Retirement Income Security Act or the Internal Revenue Code, which includes all of these plans. An order is considered qualified if it provides the names and addresses of both the person paying the benefits and the divorced spouse, the percentage to be paid to the spouse, the number of payments affected by the order and the specific accounts affected.
  
  

When Will My Spouse Receive Benefits?

• The spouse will receive benefits once you start receiving them or at the earliest retirement date, whichever comes first.
  
  

How Big a Cut WIll My Ex Get?

• That depends on the order. Some Michigan courts write QRDOs to state that the spouse only receive a percentage of the contributions made during the marriage. Other orders may entitle a spouse to a percentage of all contributions.
  
  

Are Part of My Benefits Off-Limits?

• Some retirement plans offer a cost-of-living adjustment. Unless the QDRO specifically addresses this possibility, Michigan prohibits the divorcing spouse from receiving that additional money. The same rule applies to any subsidies for early retirement.
  
  

Do Different Plans Have Different Payout Rules?

• Some specialized retirement plans set their own requirements for a divorced spouse to receive a percentage. These plans include railroad workers, military employees, civil service employees, federal employees and Michigan state employees.