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.
