Dividing Retirement Assets
Determining the Marital Portion and Division of Retirement Assets
With a few exceptions, any asset acquired during a marriage is presumed to be a marital asset or may have a marital portion attributed to it. This includes retirement assets, even if you owned them prior to the marriage. For instance, if you had a 401(k) or an IRA prior to your marriage and it increased in value during the marriage, you may owe your spouse a portion of that retirement account as part of the division of your property. If you are getting divorced and need to understand the impact this will have on your retirement, you need to contact a Lakeville lawyer with experience in dividing retirement assets.
At Dwire Law Offices, P.A., we understand the impact divorce can have on your overall financial outlook, as well as your retirement. We help you put yourself in the best possible position so that after your divorce is final, you can move forward with the rest of your life. We can help you evaluate your financial situation and see where the division of property will impact you and what effect it will have.
What Happens to Retirement Funds During a Divorce?
A retirement asset is no different than any other asset during a divorce: its marital portion must be determined and calculated into the overall financial picture of each party. Depending on your situation, you may be better off preserving your retirement assets and surrendering another asset to compensate your spouse for not taking his or her marital portion of your retirement.
We sit down with you to review your finances as well as your spouse’s finances. We look for areas where you can compromise on things you don’t feel as strongly about in order to potentially keep your retirement assets intact.
If you have children or if there is a significant difference in earning potential between you and your spouse, things may be different. You may be required to set up a qualified domestic relations order (QDRO) to handle the distribution of your retirement assets when they become eligible for distribution. In some cases, we may be able to use an exception so that you or your spouse can liquidate part or all of a retirement asset through a QDRO in order to deal with taxes, debt or other financial issues.
Call Dwire Law Offices to Schedule Your Free Consultation
To discuss your division of retirement assets issue with attorney Todd Dwire, please contact us at 952-232-0179 or 866-442-9693.