How Does Divorce Impact Retirement Accounts?

Divorce impacts all aspects of your financial life, and that will include any retirement account you have. The circumstances of your divorce and your retirement accounts all come into play here. How you resolve these issues and find the way forward may need the insight and assistance of an experienced retirement account division attorney.

At the Law Offices of Michael A. Robbins, PLLC, attorney Michael Robbins has a deep understanding of all aspects of family law. With over 30 years of experience, he’s worked with clients across the Tri-County area on all aspects of their divorces. Retirement accounts are a unique concern, but he can guide you through these issues with confidence.

How Are Retirement Benefits Split In A Divorce?

Retirement benefits will go through the property division discussions just like every other asset. If your marriage lasted for decades, then even under equitable division in Michigan, the law may entitle your spouse to a portion of your:

• IRA
• 401(k)
• Pension plan

However, here is where the circumstances of retirement complicate the process. If your retirement account is employer-provided – 401(k)s and pensions most often – it will take a court order to divide the account due to the complex law known as the Employee Retirement and Investment Savings Act.

What Is The Process For Determining Retirement Account Value?

Retirement account value is a complex calculation for anyone in any circumstance, and future valuation often comes with some margin of error. However, sophisticated financial tools go a long way toward providing an accurate future forecast of your accounts.

That said, the future value of the account is less important than the division of the current asset. Whatever share of the asset will go to your spouse can be divided now, and the future value will stay in proportion to the rest of the account.

Turn To The Law Offices of Michael A. Robbins, PLLC, For Detailed Answers

Asset division is the most complex part of divorce, and the division of retirement accounts is one of the most complex aspects of property division. It’s natural to have a lot of questions. We’re here to get you the answers you need. Call us today at 248-646-7980 or send an email to get started.