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Mark Abzug

Understanding the division of retirement assets in a Florida divorce

On Behalf of | Sep 28, 2023 | Property Division

Dividing retirement assets is one of the complexities of divorce property division. You and your ex may have existing IRAs, 401(k)s, pensions and other investments which are subject to equitable distribution under Florida laws.

Since retirement funds are significant assets that protect your future financial security, it is reasonable to be eager to know how the courts will divide them equitably.

Why financial experts are crucial to the process

Unlike other assets, retirement accounts are difficult to value accurately since most will not be paid out until your retirement, which may take many years. Fortunately, financial valuators can help you obtain an accurate value through expert analysis and investigation.

Accordingly, you do not have to worry about the valuation methods and computation. As long as you have enlisted the help of competent financial experts, you should be in good hands.

The benefits of filing for Qualified Domestic Relations Order (QDRO)

In some cases, certain retirement accounts qualify for a QDRO when dividing property assets. This order allows an alternate payee to receive a portion of the account’s payable benefits. Connecting this to the divorce process, a QDRO allows one spouse to receive a portion of the other’s retirement plan following a divorce. Additionally, the transfer is not taxable to either party.

Leaving the practical details to the experts

If you are a divorce party, it is common to worry about the process of dividing assets, especially when your financial future is on the line. Nevertheless, it is generally not your responsibility to know the formulas and calculations of the process. A knowledgeable retirement account division lawyer, financial experts and tax planning specialists should be able to do those tasks for you to protect your interests.