Beyond Child Support: What is a Non-Working Spouse Entitled to in a Divorce?
Understanding rights of a non-working spouse during divorce is pivotal to securing a future that reflects the contributions both partners made to the marriage. Whether one partner dedicated years to raising children, or supporting their partner’s career, the law recognizes these contributions as invaluable to the marital partnership. As such, the non-working spouse may be entitled to a share of retirement benefits, investments accrued during the marriage, and even alimony or spousal support.
Each case’s specifics can vary widely, influenced by local laws, the length of the marriage, and other factors. In this article we review what non-working spouses should be aware of during divorce proceedings and what assets they are entitled to, including Wisconsin-specific divorce laws. This article will help non-working spouses understand their rights and make informed decisions during this difficult time.
Article Summary:
- Marital Property & Separate Property
- The Role of Alimony in Divorce
- Legal Rights to Retirement Accounts and Pensions
- Health Insurance Considerations After Divorce
- Division of Debts in a Divorce
- Custody and Child Support Considerations
- The Importance of Legal Representation
1. Marital Property & Separate Property
During divorce, the distinction between marital and separate property is often misunderstood. Marital property, generally speaking, encompasses assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title. This can include everything from the family home to retirement accounts and even personal items such as furniture.
Separate property refers to assets owned by one spouse prior to the marriage or acquired through inheritance or as a gift from a third party during the marriage. However, the waters can get murky when separate property is commingled with marital assets, potentially transforming it into marital property. For example, receiving a family inheritance but then putting it in a joint bank account could change its status.
In Wisconsin, the court presumes all property is marital unless proven otherwise. Other states may have different laws, so it’s important to consult with a local divorce lawyer.
2. The Role of Alimony in Divorce
Alimony plays a pivotal role in balancing the economic scales post-divorce. It aims to mitigate the unfair economic impacts that divorce can have on a lower-earning or non-working spouse, ensuring they can maintain a standard of living comparable to the one during the marriage. Essentially, it’s about recognition of each spouse’s contributions, whether they’re monetary or otherwise, such as homemaking or raising children.
The determination of alimony involves a careful examination of several factors including the length of the marriage, the earning capacity of each spouse, and their respective contributions to the household. In Wisconsin, there are four types of alimony – temporary support, permanent support, lump-sum support and reimbursement support. Your divorce attorney can provide guidance on which type may be best for your specific case.
3. Legal Rights to Retirement Accounts and Pensions
Retirement accounts and pensions often represent a significant portion of the marital assets and can be a source of considerable complexity. Under federal laws, retirement accounts are protected to ensure that individuals receive the benefits they’ve worked hard to earn. However, in the event of a divorce, these funds don’t remain untouchable.
The division of such assets typically requires a court order, known as a Qualified Domestic Relations Order (QDRO), which recognizes a spouse’s right to receive a portion of the retirement benefits their partner has accrued. This legal instrument is crucial for non-working spouses or those who have lower earnings, as it secures their share of the retirement savings, acknowledging their indirect contributions during the marriage.
The specifics can vary significantly depending on the type of plan (defined benefit vs. defined contribution) and state laws, but the principle remains: retirement savings are not solely the domain of the earner but are considered a joint asset within the marriage.
4. Health Insurance Considerations After Divorce
Once the divorce is finalized, you may find yourself without coverage if you were previously insured under your ex-spouse’s plan. However, not all is lost.
Federal laws, such as COBRA, offer a lifeline by allowing individuals to continue their existing coverage for up to 36 months after a divorce, albeit at a higher cost. Additionally, divorce qualifies as a significant life event, enabling you to enroll in a new health insurance plan outside of the regular enrollment periods.
5. Division of Debts in a Divorce
Much like the distribution of assets, debts accrued during the marriage—be it from credit cards, mortgages, or auto loans—are typically seen as a shared responsibility. This is because, in the eyes of the law, marriage is not just a union of hearts but also a partnership of finances.
Most states adhere to the principle that debts held jointly are to be divided equitably among both parties, regardless of whose name is on the bill or who did the spending. However, this doesn’t mean a strict 50/50 split; courts often aim for a fair distribution, considering factors such as each spouse’s ability to pay and their individual financial circumstances.
6. Custody and Child Support Considerations
Joint custody agreements are becoming more common, shifting away from the outdated idea that only the parent without custody should be responsible for child support. In reality, when parents share custody, financial responsibilities remain a critical consideration. The focus is on ensuring the child’s welfare, with financial contributions designed to preserve their quality of life in both homes.
In Wisconsin, child support guidelines take into account both parents’ income, the amount of time the child spends with each parent, and any special needs or expenses. You can learn more about Wisconsin specific laws in our post “Understanding Child Custody Law in Wisconsin.”
7. The Importance of Legal Representation
Navigating the complexities of divorce and all its financial implications can be overwhelming, which is why having legal representation is crucial. An experienced divorce attorney can not only help you understand your rights but also guide you through the process and ensure that your best interests are represented in court.
So, if you are facing divorce or considering it as an option, reach out to Ohiku Law Office. Ohiku Law has a team of experienced and compassionate Milwaukee divorce attorneys who can provide you with the necessary legal guidance and support during this difficult time. Divorce may be challenging, but with the right legal representation, it doesn’t have to be overwhelming or unfair. Call Ohiku Law today.
By Attorney Odalo Ohiku, Owner of Ohiku Law Office
Attorney Odalo Ohiku is a dedicated and experienced lawyer who focuses on divorce law, family law, and custody and placement for high-net-worth individuals in the Greater Milwaukee area. A trained mediator and arbitrator, Attorney Ohiku has the skill set, experience, and perspective to help clients safeguard their interests while minimizing the stress, anxiety, and conflict that can come with divorce. Attorney Ohiku’s credentials are exemplary: he has been honored as a “Top 40 under 40” by both The American Society of Legal Advocates and The National Trial Lawyers, served as Chair of the Wisconsin State Bar Board of Governors, and earned the President Award from the Wisconsin State Bar. He is passionate about his work in safeguarding families, ensuring that they can maintain the lives they have worked hard to build.
