The decision to divorce is difficult for some people in Mississippi to reach, even though it may ultimately the best option for everyone involved. However, once that decision is made, there are even more decisions to make. One of the difficult processes for couples going through a divorce, especially those who have been married for a considerable amount of time, is how they will divide their marital assets.
Unfortunately, those with experience in the divorce field claim that many people overlook the importance of retirement funds when dividing marital assets. In fact, many people claim that it is much more beneficial to choose retirement funds over the marital home. While some who went through a divorce report that they were unaware that retirement funds are divisible, any qualifying as marital property can be. In some states, the money earned on accounts that were in place prior to the marriage may also be considered a marital property.
However, there are some important points to remember when working with retirement accounts. For example, some people might prefer a Roth IRA or Roth 401(k) because taxes have to be paid on money withdrawn from some other types of retirement accounts. Additionally, while someone is allowed to withdraw money from certain types of their former spouse’s retirement plans once without penalty before a certain age, some recommend leaving as much as possible in the account so that it can continue to earn money.
The division of retirement funds is just one of the many decisions that must be made when a couple decides to divorce. Many of the decisions could revolve around complicated issues that may vary according to state law and the length of a marriage. Luckily, there is experienced help available in Mississippi to help guide those seeking a divorce throughout the process to ensure that all issues have been thoroughly examined and fairly settled.
Source: Forbes, "The Big Money Mistake Divorcing Women Make", Kerry Hannon, July 3, 2014