When going through divorce, you will eventually begin to consider the property division process. This is when assets, as well as debt, are divided between the two parties. While this sounds easy enough, with most people expecting a 50-50 split, this is not always the way things work out.
In addition to assets such as bank accounts, real estate and cars, you also have to consider the division of retirement funds. This can include but is not always limited to the following:
— IRA accounts
— Savings plans
— Qualified domestic relations order
It is not always easy to value retirement assets, as what you see on the surface may not be what the court takes into consideration. While you do your best to ensure that retirement assets are divided fairly, you can rest assured that the other party is taking the same steps. This can lead to a variety of questions and challenges, all of which need to be worked out as soon as possible.
While not always the case, older individuals — those who are closing in on retirement age — have the most retirement assets. This makes the division process even more challenging, as both people may hope to retire at some point in the near future.
If you are going through divorce and concerned about how your retirement assets will be treated, don’t hesitate to learn more about how this is approached in your state. You can learn more about this by visiting our “Division of Retirement” webpage.