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Property and Asset Division in Divorce Cases

Property and Asset Division in Divorce Cases
Retirement Accounts and Pensions In cases where divorcing parties have retirement accounts or pensions, those assets are subject to division as part of the divorce as they are considered marital property. However, retirement accounts and pensions are considered and divided differently, and there are ways to ensure that you are receiving present day, actualized value for your awarded portion. Determining what the “marital portion” of those accounts can often be the first problem. Where the entirety of the value in the accounts has been earned entirely during the marriage, the problem is simple. Where the asset existed prior to the marriage, but money was placed into or earned by the account during the marriage, determining what constitutes the “marital portion” can become very complex. First, you need to know the difference between what are called “defined contribution plans,” commonly called 401ks, IRAs, CMAs, 457b, and 403b plans, and “defined benefit plans” which are pensions.

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