How divorce can impact retirement

On Behalf of | Feb 22, 2019 | High Asset Divorce

Those in Texas and throughout the country who get a divorce may want to account for how it could impact their retirement. This is a good idea regardless of how long into the future a person wants to stop working. Almost any type of retirement account could be divided in a divorce even if there is only one name on the document. An IRA is an example of an account with one name on it that could be considered marital property.

Generally speaking, anything that is acquired or that grows in value during the marriage can be split. Those who have a pension may also find that it will be split during a divorce. In some cases, the value of the pension prior to the marriage could be part of a property division award. If a person was married to a spouse for 10 years or more, he or she could qualify for Social Security benefits under that spouse’s name.

A qualified domestic relations order, or QDRO, will be used to divide assets in a 401(k) or other qualified retirement accounts. It is generally worth seeking advice from an attorney or other professional who has experience with drafting them. This is because there are certain protocols that should be followed when doing so.

In a divorce, an individual may be entitled to a portion of assets acquired during the marriage. State law generally determines how assets are split, but a prenuptial agreement might also play a role in determining how this will happen. An attorney may help a person obtain as much property as possible or review a prenuptial agreement to determine its validity. An accountant or other professional may assist in reviewing a settlement to determine tax or other long-term consequences it could have.