Retirement accounts and pensions are often among the largest assets in a married couple’s estate. When a couple decides to get a divorce, these assets must be divided between the spouses alongside multiple other types of marital property. It is important to understand the issues that will need to be considered when dividing retirement benefits. This can ensure that the financial interests of both spouses will be protected, and it can help them make informed decisions about their future.
Options for Dividing Retirement Accounts and Pensions
Retirement savings accounts, including 401Ks or IRAs, usually consist of money that is deducted from a person's income and invested in financial funds. These accounts will grow over time, providing the account holder with income they can use to meet their needs after their retirement. Pension benefits are similar, although they usually will not require deductions from a person's income. Instead, they will consist of ongoing benefits that will be paid from a pension fund after retirement.
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