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What happens to retirement funds and 401k plans in a divorce?

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What happens to retirement funds and 401k plans in a divorce?

Retirement plans and 401k plans are part of the equitable distribution process of a divorce, which is a division of all of the assets and the debts of the marriage. There is a presumption that each of the accounts will be divided 50/50 between the parties. That is a rebutable presumption, and some people would prefer to retain 100 percent of their 401k or retirement accounts, and, in so doing, they will give other assets to the other spouse to offset what they’re giving up for the retirement funds.

If retirement plans are divided, there is a qualified domestic relations order or [quadro 00:45] that is used and submitted to the court and to the investment companies, and the funds are divided that way.

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