Divorce impacts all aspects of your life. Where you live, your relationship with your children and your finances all are impacted. You are not alone if you are worried about how your retirement assets and financial goals will be affected by divorce.
The division of retirement assets is complex. It is understandable if you have questions about the process so you can prepare for divorce settlement negotiations. Proper planning can go a long way in helping you understand how your finances will change and what steps you can take to achieve your retirement goals once the divorce is finalized.
Arizona is a community property state. This means that all property obtained during the course of the marriage, including money saved in retirement accounts, is subject to splitting in half. Below is a list of what else you need to know about dividing retirement assets:
- You are only entitled to half of the assets in retirement accounts that was saved while you were married
- A Qualified Domestic Relations Order is required to allow you to collect money from your ex-spouse's retirement account
- You will receive the money during your settlement instead of when your ex actually retires
The discussion of dividing assets, including retirement accounts, is a difficult but important discussion to have. You need to understand the financial implications of your divorce. Having a clear picture of how your assets will be divided between you and your ex will help you plan for your future.
Retirement accounts, pension funds and other financial accounts are subject to specific property division laws. An attorney can help you understand what steps to take now to plan for life after divorce so you can still achieve your retirement goals.