The 401(k) Plan and Your Divorce
Divorce itself is an emotionally charged, troubling process. When you add major financial decisions to the mix it can create a recipe for disaster.
A large portion of many divorce settlements I help with involve retirement plans. Per the Investment Company Institute, as of December 31, 2018, 401(k) plans held an estimated $5.2 trillion in assets and represented 19 percent of the $27.1 trillion in US retirement assets. So, it’s no surprise that retirement plans hold a large portion of discussions in divorce cases.
In this excellent blog posting, the Divorce Strategies Group offers help understanding the 401(k), taxation of the 401(k), and the pros and cons of keeping or receiving the 401(k) in a divorce agreement.