Just like any other asset acquired during the marriage, if you earned retirement benefits while married, they are marital assets.  Some people mistakenly believe that because their employment efforts alone created the value of their retirement account, their spouse does not share in it.  Not true.  Retirement accounts need to be accounted for just like all of the other marital assets.

Retirement accounts do not necessarily need to be divided as part of a divorce, though.  The parties could decide that one spouse will keep his/her retirement account, and the other spouse will be awarded another asset of similar value as compensation.  This can save the expense that is associated with the mechanics of dividing a retirement account after the divorce is over.  The parties can also choose to divide retirement accounts.  This is often done through a legal document known as a Qualified Domestic Relations Order (QDRO).  These documents are very technical, and require the approval of Plan Administrators before they can be processed.  When dealing with defined benefit plans (i.e. pensions), it is also important to consider valuation issues and whether you should have a pension appraised in determining its disposition.

There are a number of complications that come with splitting up retirement accounts.  Even if you have come to an agreement on all other assets and debts, it is important to consider how you will divide your retirement accounts now to avoid problems down the road.  Your retirement is your future – make sure it is protected during a divorce by contacting our team of experienced divorce lawyers.  Contact the staff at Gadtke & Beyer, LLC or fill out a form on the side of the page.

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