Yes, financial instruments like retirement accounts are typically – at least in part – marital assets whose disposition has to be negotiated as part of the final divorce settlement.
If you have been contributing to a 401(k) for longer than the duration of the marriage, the court will likely consider the pre-marriage value of the account to be a separate asset, while the value accrued during the marriage will be subject to division.
When it comes to retirement accounts, there are an almost limitless variations on how they are addressed, based on factors like the length of the marriage and the age of the spouses.
From the perspective of the account holder, how distribution is structured should take into account the tax implications of all strategies.
The attorneys at Zelenitz, Shapiro & D’Agostino can help you make the best choices. Call us at 718-523-1111 for a free consultation.