Do I Have To Share My Retirement Savings With My Spouse?
When you get a divorce, you need to split up your assets. Unfortunately, that usually means your retirement savings too. If you have anything saved up in a 401(k) or IRA, you should mentally prepare for that money to be part of the discussion. Our Morristown property distribution attorneys can tell you more about what to expect from this process.
Can My Spouse Get Part of My Retirement Savings?
When you get a divorce, your spouse can get a piece of your retirement savings if you have any. This means that they can ask for money from your 401(k) or individual retirement accounts. Normally, taking money out of such accounts would result in tax penalties, but there are workarounds for divorcing couples. There would be paperwork required, like a qualified domestic relations order, or the money from one account could simply be transferred into another.
Now, it’s not necessarily a given that a piece of your retirement savings will go to your spouse. Divorce is a negotiation. If you really want to keep what’s in your 401(k), you may be able to give up other assets instead. If you and your spouse have similar amounts put away for retirement, you might just agree to keep what you have and move on to conversations about other assets. Whatever the case may be, a lawyer can help you negotiate a fair deal.
What Happens to Retirement Savings I Earned Before Marriage?
One thing to note here is that we have been talking about retirement savings earned during marriage. Even though it’s your income and savings, your retirement account grew in value during your marriage. That makes it a shared property.
However, any retirement savings you had before you tied the knot would be your separate property. That means that anything that was in these accounts before you got married would not be split up when you divorce.
What About Social Security Benefits?
As for Social Security benefits, there really isn’t much you can do to negotiate here. The law says that an ex-spouse can apply for monthly benefits as long as they were married for at least 10 years before getting a divorce. The good news is that this won’t actually reduce how much you receive in benefits. Your ex may also end up declining your benefits if they are eligible for their own.
Meet With a Divorce Attorney
So if you want to protect your retirement savings and other assets, having a lawyer on your side can be beneficial. Contact Lazor Rantas, PC to schedule a consultation with our team and learn more about what we can do to help you safeguard your assets and fight for a fair divorce agreement.
