There is no doubt about it, experiencing a divorce can wreak havoc on one’s financial situation. As such, those in New York who are considering or currently working through divorce proceedings are likely to do everything they can in an effort to receive a fair settlement when all is said and done. When working through the division of monetary assets, there are a lot of questions and concerns that may come to mind. Help is available in order to ensure the best decisions are made.
One concern some may have is in regards to retirement accounts. Depending on one’s age or how much he or she has been willing to put aside throughout the length of the marriage, retirement accounts can be of substantial value. Overlooking these accounts could result in one spouse walking away from the marriage with far less than to what he or she may be entitled. However, splitting retirement savings accounts can be a rather tricky business.
There are a lot of rules that govern retirement accounts. Distribution policies and tax consequences vary based on the account type. These things will need to be taken into consideration before requesting that retirement funds be included in a financial settlement.
For those who do decide to pursue an ex-partner’s retirement accounts as part of divorce settlements, certain forms are needed. Failing to file the appropriate requests could only end up hurting the receiving spouse financially in the long-run. Those in New York can seek assistance from legal counsel when determining if it is worth fighting for the money in retirement funds. If it is, further help is available in filing the appropriate documents and in choosing the distribution options that will best protect the client.
Source: Fox Business, “Who Gets the Retirement Accounts in a Divorce?”, Aj Smith, Nov. 17, 2015