When older Florida couples get divorced, it may be less contentious. This is because children may have already left the home, and it may also be because both parties acknowledge that they have outgrown each other. However, it is still necessary to find a way to divide marital property such as a 401(k) or other retirement assets. These must be split in a specific manner when a divorce takes place.
Also, a divorce may have negative financial consequences regardless of when it happens as two people must now provide for themselves on their own. In some cases, a couple may decide to split assets 50/50 and move on with their lives. When splitting a 401(k), a qualified domestic relations order (QDRO) must be drafted. However, one is not needed to split an IRA.
If drafted properly, a person avoids any taxable event when the money is transferred directly to another account. When money is taken out in accordance with a QDRO, there is no early withdrawal penalty for those under 59 1/2. Prior to splitting an IRA or 401(k), it should be appraised by an professional to determine that a split is fair in the context of the overall divorce settlement.
In a divorce, a person’s top priority is likely to provide as much financial security for him or herself as possible. This may be done by obtaining a portion of a former spouse’s retirement account. An attorney may help a person negotiate a favorable settlement or obtain a favorable ruling from a judge in a divorce trial.