While divorces are generally an emotional roller coaster, they are particularly draining in a financial sense, as well. This may raise a number of concerns for both you and your future ex-spouse, especially regarding how a 401K is split in a divorce. Perhaps your most significant and essential financial asset, your 401K is of immense value during your divorce--in fact, it may be the most valuable asset you fight for during this entire process. As such, it is considered marital property, just like your home.
However, unlike your home, deciding what to do with your 401K is not quite as simple as any other asset or property. In these instances, it is important you draw up a QDRO, also known as a qualified domestic relations order. This order determined how your 401K will be distributed, and it highlights the way in which you and your spouse will choose to divide up the nature of 401K payments. Unless a QDRO is properly filed, your 401K may be incredible vulnerable to your spouse’s interference. If one party dies or retires before the plan is approved, your spouse will lose his or her benefits--all the more reason to enlist in the help of an Cook County family lawyer who will construct a QDRO that works with you and your spouse’s needs.
Comments
Post a Comment