The longer your marriage lasted, the more property you will have to divide with your ex in the event of a divorce. You will need to split assets either by working together before divorce court or through litigation in Kentucky family courts.
Under the state’s equitable distribution standard, most of the property, income and debts you accumulated during your marriage are subject to division. Equitable distribution rules aim to create fair solutions for the shared property between spouses. Even accounts and benefits in the name of one spouse could get split by a judge.
Especially if you are close to retirement age, your retirement savings could be a focal point in your divorce proceedings. Couples that need to split retirement savings often use a qualified domestic relations order (QDRO) to do so. What are the benefits of using this supplemental document to divide your retirement assets?
You can have a professional divide the account
High-value property is often the focus of arguments in Kentucky divorces. A spouse who has a retirement account partially funded by their employer may feel angry about the idea of dividing their employment benefits with their ex. They might intentionally diminish the account before retirement so that there is less to share.
If you just wait for your ex to reach retirement age, you may not receive the amount you expected at the time of the divorce. When you draft and promptly file a QDRO in your Kentucky divorce, you reduce the likelihood of one spouse dissipating the retirement assets or intentionally mismanaging their division.
You get to avoid withdrawal penalties
If you take money out of a retirement account with tax benefits before retirement age, you will have to pay taxes immediately on the amount and may have penalties as well. These costs can drastically reduce how much you have saved. When the division of the account takes place in accordance with a court order via a QDRO, you won’t have to worry about those financial consequences and can retain the full balance of the account display splitting it with your ex.
Employing the right tools for complex property division matters will help ensure a fair and reasonable outcome in your Kentucky divorce.