Splitting the Savings for Your Separate Happily Ever After
A divorce introduces obvious changes in your day-to-day life, but it also initiates some complicated modifications to your future. While married, any money you save for your retirement is considered marital property. This means that, when you divorce, your partner is entitled to a share of it.
Retirement Assets at Stake
Your retirement savings is likely made up of multiple accounts and benefits. Some of the most common retirement assets include:
- 401(k) accounts
- 401(b) accounts
- Employee stock options
- Life insurance accounts
These assets are subject to an equitable distribution between you and your spouse. This means that, while perhaps not an even split, it will be divided however the judge deems fair.
Qualified Domestic Relations Orders
You can outline directions for the division of your retirement plans in a Qualified Domestic Relations Order (QDRO). This document can account for defined contribution and benefit plans, as well as Simplified Employee Pension Plans. They may be distributed in:
- Shared interest: The pension-holder and their former spouse start receiving benefits at the same time
- Separate interest: The former spouse receives benefits whenever they choose
- Qualified joint and survivor annuity: The former spouse is afforded survivorship rights
Our attorneys can help you draft a QDRO as part of your divorce settlement. To be valid, we must include:
- Your name
- Your spouse’s name
- Your address
- Your spouse’s address
- The amount or percentage each of you will receive
- The time period the order covers
- The pension plans the order addresses
Individual Retirement Accounts
Individual retirement account funds can be transferred to a spouse’s IRA without incurring taxes. These plans must be clearly written into a couple’s divorce plan.
Get Professional Assistance
When it comes to your retirement assets, you can’t afford to go unrepresented. Trust Smith Law Offices, LLC to protect the future you’ve been saving for. Contact us to get started: (636) 400-1177.