A Law Firm Where
You Are Our Top Priority

How the property division process affects retirement savings

by | Jul 15, 2019 | Property Division

When a Florida couple makes the decision to move forward with divorce, it will eventually lead to financial adjustments that will impact various areas of their lives. This includes retirement savings. Money and assets earned acquired over the course of the marriage is likely considered marital property, which means it is subject to equitable division. A person may want to learn more about what the property division process will entail for one’s specific situation.

Divorce brings new financial challenges to a person’s life, even years down the road at the time of retirement. One of the aspects that divorce can affect includes Social Security. In certain circumstances, it may be possible to claim benefits off an ex-spouse’s work history, but many people do not know this. It depends on factors such as the length of the marriage, current marital status and the ages of both parties.

Divorce will also affect IRA accounts and 401(k)s. It is not always easy to divide these assets, and sometimes there is disagreement between spouses regarding how much each of them should get. A qualified domestic order is a legal document is that outlines how certain retirement assets are divided, who can receive funds from these types of accounts and when they can withdraw them.

When a Florida resident goes through a divorce, it makes sense to learn more about how to protect applicable legal rights during the property division process. Retirement is a major aspect of this process, and it’s smart to think long-term when making divorce-related decisions. With guidance and careful consideration, it’s possible to secure a final order that allows for a strong and stable future.

FindLaw Network