Regardless of whether you are undergoing an amicable or contentious divorce, you are likely to face complications and uncertainties. One such uncertainty might be the fate of your retirement assets.
It is possible that both you and your soon-to-be ex-spouse have considerable retirement savings that are the results of your hard work thus far in life. Therefore, it is important to understand what will happen to your retirement account in the divorce and how you can protect your savings.
Will the court divide your retirement assets during the divorce?
Minnesota statutes on the division of marital property state that the court will oversee an equitable distribution of shared assets. This includes any contributions made to a retirement account during the course of a marriage. Be aware that your spouse might walk away from the divorce with a large share of your retirement assets if you are responsible for a greater monetary amount of contributions.
How can you protect your retirement assets?
Safeguarding your retirement is a reasonable priority in a divorce. While the court will enforce an equitable distribution of assets, you can maintain complete ownership of your retirement accounts if you reach a compromise regarding other marital assets that your spouse will keep. Opting for mutually-beneficial mediation outside of court can be a relatively stress-free way to reach this type of outcome.
The exact fate of your retirement assets can depend on personal circumstances and the size of the contributions made by you and your spouse. Keep in mind that retirement assets are often subject to the division of marital property, but you can take steps in protecting your retirement through compromise.
