The end of a marriage can be a financial nightmare for spouses in Missouri who have spent years saving for their retirement. Understanding the applicable laws regarding retirement assets and divorce may make navigating this aspect of the marital breakup simpler. Here is a look at how retirement assets are divided during a divorce proceeding in Missouri.
Splitting retirement funds in divorce
Retirement assets must be divided during divorce because they are considered marital property in Missouri. The state follows the equitable distribution principle, where a judge divides these assets in a manner that is deemed to be equitable, or fair. The split may not necessarily be 50/50.
People who are going through a divorce and have 401(k)s may need to obtain qualified domestic relations orders, or QDROs. These court orders specify how much both parties will receive when dividing their 401(k)s. Individual retirement accounts, or IRAs, do not require QDROs. The parties still need to record in their settlement agreement who will get how much money when splitting IRAs during divorce.
How a family law attorney can help
Figuring out how to split retirement accounts and other assets can be overwhelming, but an attorney in Missouri may make the process easier. A family law attorney can help a person going through a divorce make educated property division decisions while pushing for a fair and comprehensive divorce settlement with the other party. The attorney will also be prepared to litigate this matter if necessary, ensuring that his or her client’s rights and best interests are protected each step of the way.