Divorce and retirement accounts

I have been asked many times about what happens to 401(k) plans, pensions and other retirement accounts in a divorce.

When it comes to marital assets, a retirement account that is involuntary or directly deducted from your paycheck will be one of your most substantial marital assets – other than your marital home.  As a matter of fact, any retirement benefits which have been accrued during the length of your marriage are considered marital property and will be divided equally.  The best way to avoid a potential stressful situation is to address this in a prenuptial agreement.

You have options as to the way of dividing your retirement benefits, which include:

·         Present-day valuation buy-out

·         Divide existing benefit into two accounts

If you are dealing with divorce and there are retirement accounts involved, you would be wise to contact a knowledgeable and experienced Orange County Divorce attorney who will be able to answer all of your questions and advise you of your best legal options.