Different types of assets require different types of considerations in a divorce proceeding. Splitting retirement assets requires professional advice for a number of reasons. Depending on the type of retirement plans, different rules and laws apply. It is important to consult professionals when deciding how to divide asset in a divorce because tax implications may have a significant impact on the value of the asset if it is not divided in the right way. Here are a few examples of issues to consider in dividing retirement assets.
How does the retirement asset treat secondary beneficiaries? For example, if the ex-spouse decides to remarry before retirement age, might they lose the benefit altogether? That answer might be only found in the fine print of information packet the beneficiary doesn’t even have.
What kind of division of assets will result in the most tax advantages? Are you trying to split a retirement asset which is based abroad? This could lead to various taxes you did not consider resulting in a very small pot of money.
Do you really know the value of the pension plan your spouse has? It may be more lucrative than you thought. Just looking at the statement may not give you the full picture of what you are giving up if you agree to waive your rights to it in exchange for your spouse’s new boat which may be worthless in less than a decade.
If you are seeking advice about how to divide your assets in a divorce contact Attorney Diana Mohyi for a Consultation.