Each year, Florida residents that are going through the process of divorce find themselves in the situation of figuring out how key assets will be divided between the two parties. Chief among these assets are pensions, 401 (k)s, annuities, and IRAs.
Coming to settlement on these issues can often become a point of difficulty in the divorce proceedings and it is often necessary to bring in the services of a qualified family law attorney who can help to ensure that your interests are protected in this important matter. With this said, there are some key points that you need to understand about dividing assets during a divorce.
Key points regarding the division of pensions and 401(k)s
There are several key options to consider regarding the division of a pension or a 401(k). A 401(k) can be divided between both parties. This option can often end up becoming quite time-consuming. It is also possible for one spouse to keep the entirety of the 401(k) while surrendering an equally valuable asset. Yet another option is to liquidate the 401(k) to be able to pay the other spouse. It is a common choice to roll 401(k) assets into the form of an IRA as a way to avoid penalties.
The division of retirement assets has tax implications you must understand
The effective division of retirement assets has many long-term financial implications. Tax considerations are chief among these implications. Separate legal terms govern the way that 401(k)s and IRAs are handled even if you and your spouse have chosen to divide these assets in the same manner. Getting help from a family law attorney who understands these laws is a wise choice when seeking to work these asset divisions out in a way that gives you the best possible outcome.
Understanding the law as it pertains to the division of your assets during a divorce is important for your future as you move forward in your life. The services of a qualified family law attorney can help you to effectively navigate through these matters so that your interests are protected.