Splitting Retirement Assets In Your Divorce
Divorcing couples often run into snags in the property division process. One of those snags often regards how they will split up their retirement assets. Many people believe that their retirement is separate property, and therefore not subject to division during a divorce. On the contrary, it is one of the most important assets to divide.
You want to protect your financial future after your divorce, so it is important to work with an attorney who has a thorough understanding of the entire divorce process. At Kniess Law, LLC, we have over a decade of professional and personal experience guiding families in Minnesota and Wisconsin through the challenges they face during a divorce.
We take a smart and creative approach to property division. We take emotions out of the equation to help you look at the big picture and prepare you for the road ahead after divorce. It is our goal to protect your finances, as well as your relationships and dignity, with sustainable solutions.
Why Do Retirement Assets Cause So Much Disputes In A Divorce?
You work hard to build up your retirement account almost your whole life. Because of this, your retirement is one of the largest and most valuable of your estate assets.
However, the assets you add to your retirement during your marriage are considered marital property. The situation can become more contentious when one spouse is not working, or only one spouse has retirement assets, because everything will still be divided under equitable distribution, not 50-50.
How To Split Retirement Funds
Dividing retirement assets can also cause disputes because of how complex it can be. The most common ways to divide them involve:
- Qualified domestic relations orders (QDROs): These orders serve to divide an employer-provided 401(k), or other qualified account, between you and your spouse
- Orders dividing benefits: If a retirement plan is not ERISA-qualified, such as an IRA, the account can be divided without tax consequences and without a separate order from the divorce judgment. However, sometimes a separate order is necessary.
Splitting these retirement accounts require a careful and focused strategy, which we at Kniess Law, LLC, can provide.
Contact Us For The Experience You Need · Kniess Law, LLC
We strive to protect your finances, and help you feel confident about your future as we guide you through the property division process. Call our Woodbury office at 651-393-9072 or fill out our online contact form to schedule a free consultation with an experienced and knowledgeable divorce lawyer.