PERSONAL FINANCE
CALENDAR Find things to do this season: Page 27
Law column: Retirement benefits divided at divorce FROM THE OHIO BAR ASSOCIATION
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uring a divorce, property is divided fairly between both spouses. The Supreme Court of Ohio has held that all retirement benefits that were contributed to during the marriage are part of this property. This includes plans offered by employers, federal public plans like the Civil Service Retirement System, state plans like the State Teachers Retirement System, or private plans like a 401(k) that were
started by an individual. At the time of divorce, experts can help evaluate the worth of these benefits in order to divide them. How retirement plans are valued
Plans like 401(k)s and IRAs are valued from the statements of invested funds. Most are invested in publicly traded stocks, bonds, mutual funds or cash accounts. Plans that provide a monthly benefit at retirement must be valued by determining the present dollar value of
the future benefit. You likely will need expert analysis and testimony to establish the present dollar value of those plans, and what is considered “marital” (what was earned during the marriage). To that end, it is also important to note that pre-marriage contributions and their appreciation (any money earned on them) since the marriage are not included in this calculation, and do not need to be divided at divorce.
Library offers free tax preparation for 2022 filing season
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he Public Library of Youngstown and Mahoning County is again providing locations for free tax preparation and electronic filing for seniors and those (at any age) with low to moderate incomes. All sites are staffed by volunteers who have been trained and certified by the Internal Revenue Service. The IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly programs through AARP TaxAide offer free tax help for taxpayers who qualify. For VITA appointments, call 330-5401947, 330-314-4379 or email vita@ccregional.org. VITA phone lines are open 9 a.m.-5 p.m., Monday through Friday. Appointments are required. No walk-ins.
There are several ways that retirement benefits are divided between ex-spouses. This could include: n If there are multiple plans, both private and public, each spouse may receive half of the amount of each plan. n Or, each party could receive one or more of the individual plans with a transfer of some of the money in the plan to equalize the distribution. n Or the spouse can keep the benefit, but award other assets of equal value – like their home – to the other spouse. This method also requires looking at tax implications. To transfer an interest in a state plan, Ohio’s Division of Property Order form must be approved by the divorce court. To transfer an interest in a federal “qualified” plan, a Qualified Domestic Relations Order must be approved by the divorce court and the plan administrator. IRAs that are not qualified plans can usually be transferred by a simple letter of instruction. These transfer documents will also indicate whether plan benefits – like survivorship rights or death benefits before retirement – will be provided to the spouse not included in the plan. The documents also often contain a provision that each party is entitled to gains and losses on the divided account. What about Social Security benefits?
VITA locations
n Boardman at Zion Lutheran Church, 3300 Canfield Road, Youngstown 44511. 9 a.m.-1 p.m., Wednesdays and Thursdays: Feb. 9-April 14. n Campbell Elementary/Middle School, 2002 Community Circle, Campbell 44405. 5-8 p.m., Tuesdays and Thursdays: Feb. 8-April 14. n Oak Hill Collaborative, 507 Oak Hill Ave., Youngstown 44502. 4-6 p.m., Feb. 9, 23, March 9 and 23. n OCCHA, 2660 Shirley Road, Youngstown 44502. Noon-5 p.m., Saturday, Feb. 19 and March 19; 1-5 p.m., Saturday, April 2. n Sebring Library, 195 W. Ohio Ave., Sebring 44672. 9:30 a.m.-1:30 p.m., Saturdays: Feb 12-April 9. n Tri-Lakes Library, 13820 Mahoning Ave., North Jackson 44451. Noon-3 p.m., Mondays: Feb. 14-April 4. Noon-3 p.m., Wednesdays: Feb. 16-April 6. n Youngstown Community School (for school families only), 50 Essex St.,
How plans are divided
Social Security benefits cannot be divided in the same way as retirement plans, but n Interest and dividend statements. divorce courts still must consider those benn Total amount you paid for day care and efits when dividing property. There is some the day care provider’s tax ID number. debate as how to calculate the present values n Marketplace Health Insurance Form of future Social Security benefits, but there 1095-A, if applicable. must be a financial balance when divided n Your spouse, if married and filing jointly, amongst other plans. An attorney and other to sign the required forms. experts can help recommend how to most n Bank routing/account numbers for difairly judge the value and divide it. rect deposit. n Individual taxpayer ID Number (ITIN) How an attorney can help – The issues letter. arising from the distribution of retirement n Any IRS correspondence received in last benefits are complicated and require the two years. advice of an attorney to assure an equitable distribution. An attorney can also recAARP Tax-Aide site: AARP Foundaommend an expert, if necessary, to detertion Tax-Aide provides tax preparation mine the value of the marital portion of a help to anyone, free of charge, with a benefit. Military benefits present addition special focus on taxpayers who are over issues requiring expertise to resolve. 50 and have low to moderate income. About the author – Stanley Morganstern Call 330-406-9986 to request an apis the former managing partner of Morpointment. You will need to leave a mesganstern, MacAdams, and DeVito Co. sage and your call will be returned. LPA in Cleveland. FEBRUARY/MARCH 2022 METROMONTHLY.NET 11 CANSTOCK
Youngstown 44502. 4-6 p.m., Feb. 14, 28, March 14, 28. n Youngstown State University, Williamson College of Business Administration, 211 N. Hazel St., Youngstown 44555. 10 a.m.-3 p.m., Saturdays: Feb. 5-April 9. (Closed March 12.) n Zion Lutheran Church, 3300 Canfield Road, Youngstown 44511. 5-8 p.m., Thursdays: Feb. 12-April 14. n Catholic Charities, 319 W. Rayen Ave., Youngstown 44502. 9 a.m.-noon, Fridays: Feb. 18-April 1. Closed on holidays.
What to bring to your appointment n Covid-19 precautions are in place at all sites; social distancing and masks are required. n Valid driver’s license or proof of identification. n Social Security cards and birth dates for you, spouse and/or dependents. n A copy of last year’s tax return. n Wage and earning statements (W2, 1099 Misc, 1099 R).
