Preparing to dissolve a marriage can be an intimidating experience, and it can be challenging to know what to expect from the subsequent process. When facing a divorce, it may only be natural to wonder about how the outcome thereof might affect your life and to have concerns about what you can do to protect your future in Alabama.
If you put significant time and effort into building up your retirement savings, you might have concerns about the role such assets could play in the divorce process. There are several types of retirement accounts that may be a factor, and understanding your options regarding these assets could be vital to preparing for what comes next.
Types of retirement accounts
Retirement accounts are common examples of complex assets that could have a significant impact on the outcome of your situation. Some types of retirement assets may include:
- 401(k): A 401(k) is a type of retirement account that may play a significant role in a divorce. If your divorce decree calls for the division of such accounts, obtaining a QDRO may be essential.
- IRA accounts: IRA and Roth IRA accounts can also be subject to division during a divorce, and it might be possible to divide such assets without incurring any tax fees or penalties, provided this division occurs within a set period.
- Pension funds: Pension funds are also common types of retirement accounts, and the laws regarding how pensions function and the role they will play in a divorce may vary from state to state.
- Marital or separate: Another topic to consider could involve knowing how to tell if retirement funds are marital or separate property. Even if an account is started prior to marriage, any contributions or increases in value that occur during a marriage may be deemed marital property.
It may also be beneficial to seek advice on your options regarding similar assets. For instance, if you wish to retain possession of retirement funds, you might consider relinquishing possession of other assets in exchange, but this might not always be the best path in every situation.
Preparing a strategy
Knowing what to expect regarding topics such as retirement assets can prove essential to preparing to protect your future during the end of a marriage. Since this can be a complex topic, it could be helpful to consider seeking advice in addressing all your questions and concerns and evaluating your available options. This could be vital to helping you create a strategy for divorce proceedings that focuses on preserving your wishes and goals for the future.
