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Divorce and retirement accounts

| Aug 29, 2018 | Divorce |

Financial concerns are often top of mind when an Arizona couple decides to end their marriage. How will property be divided, who will receive what financial assets and who will be responsible for which bills are important factors. The answer to these questions can have a significant impact upon the individual for years to come following the divorce.

Retirement accounts are often a significant financial asset to be considered. These accounts typically hold a large percentage of the couple’s investment portfolio. Due to the nature of these accounts, they cannot simply be cashed out and the proceeds divided between the two parties. Depending upon each individual’s age, there may be tax penalties associated with cashing out. However, this does not mean that part of them cannot be transferred to the other individual.

Prior to deciding how to divide these accounts, one will want to take a look at how they are invested and determine the best way to divide them. Then, once the appropriate judgment is rendered, the proper steps can be taken to transfer these funds without incurring tax penalties. The individual will want to consult both attorney and financial advisor on the appropriate way to make this happen.

Financial assets come in many different forms. Some can easily be accessed while others may take a number of days and come with consequences when accessed. These are all matters that need to be taken into account as the Arizona couple negotiates their divorce settlement and determines the best way to divided these assets.