How does a divorce affect my retirement benefits?
Strategically guiding Murfreesboro high-asset divorce clients to a fresh financial start
Aside from the emotional turmoil that individuals experience during divorce, there are complicated logistical issues associated with starting over in separate households. Retirement is an issue that often concerns divorcing couples, who have planned for years—decades even—to retire in a single household on jointly amassed savings. In high-net worth divorces, retirement benefits can be substantial.
The risk of losing valuable retirement income makes it all the more important to have a skilled divorce attorney on your side, advocating for all assets to which you are entitled. Our high-net worth divorce team at Kidwell, South, Beasley and Haley has navigated countless Tennessee citizens through divorce, while successfully protecting important retirement benefits.
Which of my retirement benefits is my spouse entitled to?
Tennessee classifies marital property as assets and property that are acquired during the course of the marriage. For most individuals, therefore, this includes any number of retirement benefits:
- Pension plans
- 401(k) and 403(b) accounts
- Individual Retirement Accounts and Roth IRAs
- Social Security
- Profit sharing plans
- Savings accounts
How is the value of these future benefits determined?
Identifying these assets is the first step in dividing retirement benefits during divorce. The more difficult step is determining the value of these benefits. These are often complicated valuations that involve outside financial experts. Kidwell, South, Beasley and Haley has a strong working relationship with Murfreesboro’s most esteemed professionals, who provide complex and detailed valuation assessments. Working closely with our divorce team, these professionals leave no stone unturned in valuing retirement plans, taking into account all factors that may impact value:
- Federal and state laws governing retirement plan division
- Cost of living adjustments in pension plans
- Passive appreciation in defined contribution retirement plans
- Expected age of retirement
- Pre-tax and post-tax values
- Planned early withdraws
Our Murfreesboro divorce attorneys know how important it is to accurately establish value. Known for meticulous valuation, we are Tennessee’s go-to source for high-net worth individuals facing divorce.
Asset division with an eye toward protecting our clients’ separate estate
Not all retirement benefits are subject to equitable distribution in a divorce. Under Tennessee law, assets owned prior to a marriage are considered separate property. This can include assets held in an Individual Retirement Account or an individual savings account that was established before the marriage. Additionally, contributions to accounts that are considered marital property may be calculated as part of your separate estate. This can be a complicated assessment, best made by experienced experts in asset and benefits valuation. Fortunately for Tennessee clients, our firm has a team of experts available to assist us in making these determinations.
Contact our Murfreesboro high-asset divorce attorneys to help you prioritize retirement during divorce
With unparalleled experience helping families through divorce, we understand how important it is to maintain substantial savings for retirement. Schedule an initial consultation to discuss how we can help with your divorce case. Call us at 615-893-1331 or contact us online.