As a dedicated Saratoga Divorce Lawyer, I am often asked what people should know about dividing a 401K during a divorce.
- A large portion of a working person’s assets may be held in retirement funds or deferred compensation plans such as 401Ks, 403Bs, profit sharing, and other types of cash accounts.
- Depending upon the type of fund, division of the accounts is dictated by a “simple qualified domestic relations order” or a “domestic relations order.”
- Assuming each party receives the typical 50% of the marital share, the marital portion of the account is divided into two shares.
- The order goes to the plan, which segregates the funds and executes a rollover of the non-titled spouse’s funds, generally into a rollover IRA.
Do you have a 401K that you are afraid will need to be divided in divorce? Contact experienced Saratoga Divorce Lawyer Jean Mahserjian for guidance.