Past posts on this blog touched upon the fact that your divorce can have a dramatic impact on your retirement plan. As many of our clients here at the Law Offices of Sheara F. Friend can attest to, that impact goes beyond simply who you will spend your retirement years with.
One element of your retirement plans influenced by your divorce in Massachusetts is your savings (specifically your 401(k)). You may question why your 401(k) (which comes as a result of your individual employment) would be subject to property division. Yet as the contributions made to your account during your marriage come from marital assets, the court views them as shared property.
Can you retain your full 401(k)?
Yet depending on how close you are to retirement, having to divide up any portion of your 401(k) may wreak havoc on your current retirement plans. Therefore, you may want to know if there is any way to keep your full 401(k) in your divorce.
According to the 401(k) Help Center, this is a possibility. If you can convince your ex-spouse to relinquish their interest in your 401(k), you can retain its full value. Giving up your stake in a marital asset of comparable value may convince them to do this.
What is in your best interest?
Yet before you commit to such an action, you should first consider if it is truly in your best interest. “Comparable value” in this case would be the potential future value of those 401(k) assets. Thus, while you may think you know how much you may have to give up to keep your full 401(k), it may actually be much more. You can find more information on planning how to manage your property division proceedings by continuing to explore our site.