You spend decades building a dependable retirement nest egg, and if you're facing a divorce there are likely numerous questions and concerns you have about protecting those accounts. Your retirement savings represents a significant investment in your future. The prospect of divorce can suddenly create an environment where it can feel like more than your money is at risk, but your future retirement as well.
Knowing what to expect, how these accounts may be handled as part of property separation, and how to defend against an unnecessary tax burden is step one.
For many divorcees, their savings, 401Ks, IRAs and other retirement or employee benefit plans can be one of, if not the, single largest asset they own, and like any other marital property, these accounts are subject to rules of property and asset division in the State of Colorado. Handling the proper division of these accounts in a complete and fair way can be complicated, particularly in cases involving professionals who may have more significant and diverse holdings.
If you are working through a divorce, then your attorney is the best person to speak to about the specifics of your case and how to protect your savings. However, those conversations can be improved by educating yourself on some of the important terminology and considerations that your attorney is likely to discuss with you.
With that in mind, here are three things to be thinking about in preparation for conversations about division of retirement accounts during your divorce.