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A Quick Overview of Divorce & Retirement Funds

A Quick Overview of Divorce & Retirement Funds

Posted By Meyers Law Group, P.C. || 19-Aug-2014

Who will end up with the retirement money? There is no sure answer for your particular circumstances apart from discussing your legal options with an adept family lawyer. The bottom line: New York is an equitable distribution state. As such, neither spouse is owed a full half of all the marital assets, including the retirement plans. Instead of an equal split, there must be a "fair" split. What exactly is fair? That will be in the discretion of a judge, or of a couple who is able to negotiate.

Couples get the chance to decide for themselves. Whether through an uncontested divorce or a mediated divorce, you and your spouse could consult with your own lawyers, negotiate with one another, and craft a satisfactory agreement. When it comes to something as important as retirement, you want to keep the decision-making power if at all possible.

Consider which assets are more valuable to you. While your 401(k) is important, you need to weigh the tax repercussions of this account versus your Roth IRA, for instance. On the other hand, holding onto these liquid assets could be better than keeping the house. As retirement funds are often exchanged for other assets in a divorce, you need to determine which you would rather negotiate for.

Calculate what would be the best way to split funds. If you and your spouse will divide your retirement accounts, then you need to look at your options, anything from a Qualified Domestic Relations Order to a one-time massive payment.

Your financial future is a vital, but complex picture. Throw divorce into the mix, and you have the potential for a financial wreck. When you need to preserve your retirement through this legal procedure, finding the right advocate can make all the difference. See how our Long Island divorce lawyer has the acumen and tenacity you need when you contact the Meyers Law Group, P.C. today!

Categories: Divorce