After spending significant time saving and planning for the golden years of life, you might not want to let anything stand in the way of your goals for retirement. However, things might not always turn out as planned, and there may be some types of changes in life that can be difficult to predict, let alone prepare for.
If you face the end of a marriage, you might have questions about the role your retirement assets could play in this process. Retirement assets deemed as marital property may be subject to the property division process. Knowing what this process entails and what types of assets are divisible may be integral to making decisions that align with your needs.
Important matters to consider
While the outcome of your divorce will likely affect your financial situation, it does not have to derail your plans for retirement. Some factors to address that may help you better prepare to make informed choices about your situation may include:
- Separate versus marital assets: While retirement assets obtained prior to marriage may retain their separate identity, contributions to any type of retirement asset, which occur during a marriage, may be marital property.
- Taxes: Addressing how taxes might affect the overall value of retirement assets and the possible tax ramifications involved with dividing these assets may also prove vital to making informed decisions.
- Dividing retirement assets: Understanding how to divide retirement assets in accordance with your divorce decree could be integral to staving off costly penalties and fees. In some cases, documents such as a Qualified Domestic Relations Order (QDRO) may be necessary in dividing retirement assets between divorcing spouses.
- Possible options: You may have the option to relinquish ownership of other marital assets in exchange for ownership of retirement assets. Seeking advice in evaluating your specific situation may help you determine if this is a viable path for you.
Whatever your circumstances may be, it is a good idea to discuss Kentucky’s equitable distribution laws with an experienced divorce attorney.
Meeting your retirement goals
Even if ending your marriage is the necessary decision, the idea of addressing complex topics, such as retirement assets, can still feel daunting. An equal division of marital assets is not a foregone conclusion. For help meeting your retirement goals in your life after divorce, don’t hesitate to seek guidance from a Kentucky divorce attorney with experience in these complex matters.