Worried About Your 401(K)? Dividing Retirement Benefits In A Fort Lauderdale Divorce
Dividing property in a Fort Lauderdale divorce can be complicated and contentious, particularly when retirement accounts are involved. Dealing with fluctuations in the stock market is one thing. Wondering how your divorce will impact your 401(k), pension, or other retirement savings is a serious source of stress. The outcome could jeopardize your current and future financial security.
Our Fort Lauderdale divorce lawyer represents clients in these cases, protecting valuable assets and helping them get the maximum amount in a divorce settlement. We explain how Florida divorce laws treat retirement accounts and what you can expect during the process.
Factors That Influence Division of Retirement Benefits In A Fort Lauderdale Divorce
One of the biggest issues in Fort Lauderdale divorce proceedings is determining how marital property gets divided between the parties. Under the Florida Statutes, all marital property is subject to equitable distribution, meaning assets get divided fairly, not equally.
In addition to homes, cars, bank accounts, businesses, and other assets, property division also applies to pensions, IRAs, 401(k)s, and other retirement accounts. These are generally considered marital property if earned or accrued during the marriage. Broward County Family Courts considers several factors in deciding how to divide these assets:
- The length of time you were married: A longer marriage may mean a more equal division of retirement assets, as both spouses likely contributed to the household’s financial support.
- The financial needs of each spouse: The court will consider how each spouse’s economic situation will change post-divorce. Awarding one of the spouses a larger share of retirement benefits could help balance financial disparities.
- The contributions made by each spouse: This includes financial and non-financial contributions like homemaking, caregiving, and other actions supporting the family.
Keep in mind that any non-marital retirement benefits, which are those earned or accrued prior to marriage, are not subject to equitable division in Broward County divorce proceedings.
Dividing Retirement Accounts In Broward County Divorce Proceedings
Dividing retirement benefits in Broward County Family Court divorce proceedings can turn out to be a complicated process. Any oversights or mistakes could jeopardize your financial security, now and in the future. To protect your rights, be sure to address the following:
- Be diligent in uncovering all retirement accounts and determining their full value.
- Obtain a Qualified Domestic Relations Order (QDRO), required to divide retirement accounts such as 401(k)s or pensions.
- Consider the tax implications: Dividing retirement assets can have significant tax consequences. You may want to roll these funds over or create a new account to avoid IRS penalties.
Contact Our Experienced Fort Lauderdale Divorce Lawyer To Protect Your Rights To Retirement Benefits
You rely on retirement benefits to provide for your future. When filing for divorce in Fort Lauderdale, get professional legal help from a law firm you can trust to protect your rights to these benefits.
Fort Lauderdale divorce lawyer Vanessa L. Prieto provides the caring support and fierce representation you need throughout these proceedings. To schedule a consultation, call or contact us online today.
Sources:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
irs.gov/retirement-plans/plan-participant-employee/retirement-topics-qdro-qualified-domestic-relations-order
