Dividing Assets

During a divorce, there are a lot of compromises that are made between both parties. A lot of this division of assets are related to money. That may be leaving you worried and wondering how this will affect you in the long run. Here is some information about dividing assets that may be helpful to you in your divorce process.

How to Divide a 401K

Dividing Assets Mahserjian Saratoga Divorce AttorneyAttorneys are often asked how to divide a 401K during divorce.  Today, it’s common for a large portion of a working person’s assets to be held in retirement funds. More often, we see those funds held in deferred compensation plans such as 401Ks, 403Bs, profit sharing, and other types of cash accounts. Division of those accounts is dictated by either a “simple qualified domestic relations order” or a “domestic relations order,” depending upon the type of fund. Assuming that each party will receive 50% of the marital share – which is common – this approach simply divides the marital portion of the account into two shares, the order goes to the plan, and the plan then segregates the funds and executes a rollover of the non-titled spouse’s funds, which generally go into a rollover IRA.

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Dividing a Premarital Retirement Account

Another common question divorce attorneys are asked is how to divide a premarital retirement account.  If you had a 401K or profit sharing plan prior to your marriage, the funds that were in that plan prior the marriage remain your separate funds. In other words, that money will not be divided in the divorce. Sometimes, issues may arise around what happened to the portion that was premarital versus what’s gone into the plan since the marriage. For example, if you had a sizeable sum invested in the plan, that sum may have appreciated in value. Then, if you put additional funds into your plan and those funds also appreciated, it may be necessary to hire an expert who can make the appropriate calculations and help determine what portion of the plan remains separate property and what portion is considered marital. Those experts can calculate specific amounts and furnish hard and fast totals that will assist in properly – and fairly – dividing your plan.

Need help dividing assets?  Do you need to divide your 401K for divorce?  Contact dedicated Saratoga Divorce Attorney Jean Mahserjian.

 

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