When you decide to dissolve your marital union, one of your chief concerns may be how to go about dividing your assets. Specifically, you may be worried about how to split your retirement savings, particularly if this is one of your biggest assets. Here is a look at how retirement assets are divided during the property division process in a Minnesota divorce proceeding.
Minnesota is an equitable distribution state. This means that any assets that you and your spouse have accumulated over the course of your marriage are considered to be marital property and must be split equitably, or fairly. Based on this principle, your assets will not automatically be split 50/50. Instead, they will be split in a manner that the court deems to be most appropriate based on who has contributed the most financially, for example.
There are a couple of ways in which to split retirement assets during divorce. You may use a qualified domestic relations order, or a QDRO, if you are trying to divide a 401(k). Meanwhile, a QDRO generally is not needed if you are attempting to split an individual retirement account. However, a separate court order might be necessary in certain situations.
Dividing retirement savings and other property can understandably be an overwhelming process during a divorce proceeding in Minnesota, particularly if the assets are high in value. However, an attorney can help you to make informed decisions regarding the splitting of your marital property, with the goal of protecting your financial future. Your attorney will push for the fairest and most personally favorable outcome in light of the circumstances.