Deciding to end your marriage can come with a variety of emotions, from a sense of relief to concerns about finances. Luckily, learning more about how divorce will affect the rest of your adult life, including your retirement, can provide peace of mind. Use the following guide to find out what to expect and how an attorney can help.

What Happens to 401(k) & IRA Accounts?

Retirement plans that are set up by employers, such as 401(k)s, may still be split up between spouses upon divorce. However, if you signed a prenuptial agreement before getting married, you’ll want to check that there is no clause that prevents this.

To ensure you get a fair amount of your spouse’s 401(k), you’ll need to set up a Qualified Domestic Relations Order, or QDRO, with a lawyer.

This document will set terms governing the financial aspect of your divorce, including how much of the retirement fund will be allocated to you. You can have the money deposited into your own IRA account. This document also protects the employed spouse, ensuring they get to keep a fair amount of their retirement fund. 

How Divorce Affects Spousal Social Security Benefits

When it comes to Social Security benefits, the length of your marriage matters. If you were legally married for a decade or longer, and you have not remarried, you can still receive a portion of your ex’s benefits. However, you may need to wait until you can take advantage of these funds.

For example, if you wait until “full retirement” age, you’ll get 50% of their total benefits. However, if you need to start using the benefits earlier, they will be discounted. You’ll also need to wait two years after the divorce is finalized unless your spouse is already taking advantage of Social Security. If your ex-spouse remarries, your benefits won’t be affected. 

If you have additional questions about the divorce process, reach out to Ronald D. Zipp, Attorney at Law in New Braunfels, TX. This attorney is proud to help clients resolve family law issues, from child custody to adoption cases. He can also help you plan for your future with estate planning services. To learn more, visit the website. Call (830) 629-5600 to schedule a free consultation.