In most states, divorce law gives each spouse a right to a fair share of the marital assets, which may include retirement savings and pensions. Depending on the amount you’ve saved and your age, how you divide these assets can have a powerful impact on your retirement plans and future financial security. Below are a few factors to consider when negotiating the division of savings and investments.

Are Retirement Savings Marital Property?

As a general rule, most assets owned by either spouse before the marriage remains their separate property after divorce. Under the marital property rules of divorce law, each partner in the marriage may only have a claim on any earnings saved or contributed during the marriage.

How Are Retirement Savings Divided?

Valuing 401(k) and IRA accounts is often more complex than other assets since withdrawing funds usually incurs significant penalties and additional taxes. Those losses have to be deducted from the value of the account before division if you decide to withdraw the funds in a lump sum. Fortunately, there are other options that can preserve as much of your wealth as possible without sacrificing your rights to the assets.

Instead of taking a lump sum, the retirement account holder may keep the entirety of the savings and offer their spouse an equivalent sum of other assets in return. Or your divorce law attorney may request a Qualified Domestic Relations Order, which requires financial institutions to divide payments when the account holder retires. This ensures both spouses receive their fair share without paying excessive taxes and other fees.

For 115 years, the legal team at Schaller Campbell & Untied Attorneys has helped clients throughout the Newark, OH area protect the rights and achieve their legal goals. If you’re going through a divorce, they have the experience to ensure you receive your fair share of the retirement savings and any other marital assets you deserve. Visit their website for more on their divorce law services, or call (740) 349-8505 to arrange a consultation with an attorney today.