Your retirement assets are an investment in your future that is years or even decades in the making. If divorce seems like an inevitability, it is important to understand how the marital split will affect your plans for retirement.
The issue of retirement assets can be especially pressing if you are going through a gray divorce while you are already near retirement age. You can plan how best to navigate divorce negotiations by understanding how the process will affect your long-term savings and what you can do to protect them.
Are retirement assets divided between spouses?
Retirement assets are subject to the same terms of division of marital property as your other possessions. This means that any contributions made to a retirement account during the marriage will factor into the equitable distribution of marital assets between you and your spouse. Keep in mind that if you make significantly larger contributions than your spouse, you might emerge from the divorce with noticeably fewer retirement funds.
How can you protect your retirement assets?
In the event that the division of marital property might set back your retirement plans, you may understandably wish to take measures to protect your retirement assets. If you do not have a prenuptial agreement, you can negotiate a postnuptial agreement with your spouse. Mediating the division of assets outside of court empowers both parties to advocate for their own priorities and make compromises as necessary.
As with any other marital assets, your contributions to a retirement fund are subject to asset division during your divorce. If upholding your retirement plans is a high priority for you, it may be necessary to sacrifice other assets to secure your spouse’s agreement in leaving the full extent of your savings to you.