How Does Divorce Affect Retirement Assets?

You and your spouse were planning on growing old and retiring together. Now that you are divorcing, you need to determine what will happen to your existing retirement accounts, and how you will proceed in the future. With over 20 years of experience, The Law Office of Robert M. Asbury has helped a number of Tennessee families successfully navigate the divorce process, and we can assist you as well.

Call my Knoxville office at 865-909-7290 to discuss how your impending divorce will impact your retirement assets. I also have experience navigating complex high-asset divorce cases, and helping elderly individuals pursue a late-life divorce.

Thoroughly Exploring Your Options

Like all other marital assets, retirement accounts will be equitably divided between spouses during divorce. I will carefully evaluate your current retirement plan, and pursue a favorable division that protects your financial future. Commonly, individuals utilize either:

  • Qualified Domestic Relations Orders (QDROs): If you create a QDRO, you will have an authoritative court order that clearly dictates how your retirement account will be divided between you and your ex-spouse in the future. The benefits will be distributed from the plan administrator as if you are still married, but then they will separate out to each individual.
  • Two Individual Retirement Accounts (IRAs): If one spouse contributed funds to their IRA from their income during marriage, the other spouse has a right to a portion of the account value. During the divorce process, the assets can be divided between spouses and placed in separate IRA accounts without a tax penalty.

Ensuring A Secure Financial Future

Up until this point, your retirement plan has included another person. Now that you are divorcing, you need to re-evaluate your estate plan to ensure that you are prepared for the future. Anytime you experience significant alterations to your family structure or assets, you need to re-evaluate your will and discuss your estate plan with a qualified lawyer.

Discuss Your Options With A Trusted Attorney

The Law Office of Robert M. Asbury is here to help you confidently transition through divorce with a trusted advocate. We will work together to uncover a favorable divorce settlement and to establish a solid foundation for your new life.

Call my Knoxville office at 865-909-7290, or contact me online for responsive assistance.