When dissolving a marriage, most people are understandably focused on protecting their parental rights, ensuring a fair division of property, and other immediate goals. However, it’s important to understand that the ramifications of filing for divorce often go much further and can impact your plans for retirement. According to Scott & Heenan LLC, divorce lawyers serving Grant County, WI, many retirement savings accounts are considered marital property and may be divided between the two parties upon divorce. They offer more guidance on the topic below.
401(k), IRA & Other Investment Accounts
Any money saved in a retirement account during the marriage is considered part of the marital estate and must be divided fairly between you and your spouse. In some cases, the savings accounts may be granted to one party in their entirety while the other receives property of similar value, or the court may decide to disburse a portion of the funds to each participant.
Employer-Sponsored Pension Plans
In some situations, one party’s pension plan may also be considered a joint asset. Depending on its current value, a divorce lawyer may recommend that one party buy the other’s interest in the pension or give them their share of benefits after retirement.
Social Security Benefits
In marriages lasting ten years or more, the lower-earning spouse may be eligible to receive a portion of their ex-spouse’s Social Security Retirement benefits until they remarry. Because they are subject to federal law, divorced individuals generally receive 50% of their former spouse’s monthly payments, although the actual distribution may be affected by the recipient’s income later in life.
For over 50 years, the divorce lawyers at Scott & Heenan LLC have been providing comprehensive and professional legal support to clients throughout the Grant County area. They understand how stressful and confusing dissolving a marriage can be and always strive to deliver the best possible outcome. Visit their website or call (608) 348-9506 to schedule a consultation with a divorce lawyer today, and follow their Facebook for more legal tips and professional insight.