If you and your spouse are going through a divorce in the state of Florida, there’s a lot of different types of property that you have to divide up. One of the most confusing types of property is a retirement account. Understanding how this type of account is split can allow you to better prepare yourself for the property division process of your divorce.
The type of account matters
While all different types of retirement accounts can be split up during the property division process, the legal paperwork required to do so will change depending on the type of account. For this reason, it’s best to start out by identifying the type of retirement account that you have. Two of the most common are an IRA and a 401(k).
If your spouse is determined to be entitled to some of your retirement, you’ll need to get the proper legal form to make the process happen. When it comes to an IRA account, you’ll need a document known as a Transfer Incident to Divorce. In the event of a 401(k), you will need a Qualified Domestic Relations Order.
You may propose an alternative
One thing that you may want to do is keep your retirement account intact. The best way to do this is to propose a different alternative to your spouse. Instead of them taking half of their stake in your retirement account, you can propose that you’ll give them a stake of similar value that you have in another piece of marital property.
The divorce process can be a long one that brings up a lot of different questions. When it comes to your retirement account, it’s best to understand what the options are so that you can prepare yourself. When going through the divorce process, it’s a good idea to always consult an attorney to ensure that your best interests are looked after.