Splitting retirement accounts can be tough during divorce

Splitting retirement accounts can be tough during divorce

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One of the most challenging aspects of the marital dissolution process is figuring out how to disentangle assets. This is especially true for those who have retirement accounts, as it is not uncommon for people to make mistakes when splitting these types of assets. Here are a couple of important tips for dividing retirement assets during a divorce proceeding in Colorado.

First, when separating or dividing retirement accounts, two divorcing parties would be wise to include in their settlement agreement specific language that details what should happen to these accounts. The more specific the language is, the better. In addition, it is paramount that the divorcing parties submit their documents with the proper legal terms.

For instance, an Individual Retirement Account is to be divided via a process called transfer incident to divorce. Meanwhile, other types of accounts must be split under a Qualified Domestic Relations Order, or QDRO. If these terms are mixed up, this results in confusion and complications.

Nothing about getting divorced is simple, even for couples who feel that they do not have many assets — or many high-value assets — to divide. However, an attorney in Colorado can provide the guidance needed to navigate property division with confidence. The attorney will push for a fair and comprehensive settlement outside of court, but if no settlement agreement can be reached, the attorney will be prepared to litigate this matter at the divorce trial. The attorney’s main goal is to make sure that his or her client’s rights and best interests are protected during all stages of the divorce proceeding.