Important Tips For Protecting Retirement Accounts During Fort Lauderdale Divorce Proceedings
Filing for divorce in Fort Lauderdale is not only emotionally draining. It is financially risky as well, especially when it comes to retirement savings. If you are going through a split, it is crucial to consider your rights to retirement accounts and to understand how they get divided under Florida law.
Our experienced Fort Lauderdale divorce lawyer explains how state laws apply and offers tips for protecting pensions, IRAs, and other retirement assets.
How Florida Treats Retirement Accounts in A Fort Lauderdale Divorce
In Florida, any retirement assets accumulated during a marriage are considered marital property in a Fort Lauderdale divorce, which means that they are subject to equitable distribution. That includes 401(k)s, IRAs, pensions, and other employer-sponsored retirement accounts, even if the account is only in one spouse’s name.
Under Section 61.075 of the Florida Statutes, the court aims to divide marital assets fairly between spouses who are getting divorced. However, “fair” does not necessarily mean splitting everything 50/50. Family Court judges consider various factors, which include the amount of time the couple was married, each spouse’s economic circumstances, and their individual contributions to the marriage (including as a homemaker), in reaching an equitable division of retirement savings and pensions.
In addition to determining each party’s rights to these assets, other common issues concerning retirement accounts in a Broward County divorce include:
- Uncovering the total amount of savings and benefits accumulated during the marriage;
- Valuing pension plans and future retirement assets;
- Determining what portion of retirement account and benefits are marital versus separate property;
- Preparing Qualified Domestic Relations Orders (QDROs), which are required to divide 401(k)s or pensions in a divorce.
Tips For Protecting Your Rights To Retirement Benefits In A Fort Lauderdale Divorce
Failing to get legal help or properly plan when dividing retirement assets in a Fort Lauderdale divorce could result in financial losses and costly tax debts. To protect your rights to retirement funds in Broward County divorce proceedings, we recommend following these tips:
- Take care to uncover all retirement assets and review tax returns, financial statements, and other documents.
- When negotiating a divorce settlement, consider forfeiting rights to other marital property in exchange for maintaining sole ownership of retirement benefits.
- Avoid early withdrawals that could trigger penalties and taxes.
- Use QDROs to divide employer-sponsored plans like 401(k)s and pensions without tax consequences.
- Double-check beneficiary designations to ensure your retirement benefits reflect your post-divorce wishes.
Keep in mind that in addition to retirement accounts and pensions, you may also be entitled to a portion of your spouse’s Social Security retirement benefits.
To Get Your Fair Share Of Retirement Assets, Contact Our Experienced Fort Lauderdale Divorce Lawyer
Getting your fair share of retirement savings and benefits in a Broward County divorce requires a strong legal and financial strategy. Vanessa L. Prieto provides personalized, professional legal representation and takes the steps needed to protect your rights to these assets, now and in the future. To consult our experienced Fort Lauderdale divorce lawyer, call or contact our office online today.
Sources:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/0061.html
irs.gov/retirement-plans/plan-participant-employee/retirement-topics-qdro-qualified-domestic-relations-order
ssa.gov/retirement
