In the complex landscape of divorce, the division of assets often takes center stage.
One key aspect that spouses may wonder about is the fate of their retirement accounts. In Florida, the law outlines specific rules regarding the splitting of retirement funds during a divorce.
Understanding equitable distribution
Florida follows the principle of equitable distribution when it comes to dividing marital property, which includes retirement accounts. Equitable distribution does not necessarily mean a 50/50 split. Instead, it strives for a fair and just distribution based on various factors.
Marital or non-marital funds
The first consideration in dividing retirement accounts is whether the funds are marital or non-marital property. Any contributions made to the account during the marriage are typically marital property and subject to division. Pre-marital contributions and assets acquired before the marriage may be non-marital.
Types of retirement accounts
Different types of retirement accounts exist, such as 401(k)s, IRAs and pensions. The method of division depends on the specific account and its rules. For example, a Qualified Domestic Relations Order may be necessary for the division of a 401(k).
Assessing contributions and growth
When it comes to dividing retirement accounts, the court considers both contributions and the growth of the funds during the marriage. This ensures a fair distribution that takes into account the efforts and financial contributions made by each spouse during the marriage.
With a divorce rate of 3.4 divorces per 1,000 population in 2021, Florida sees its fair share of divorces. While you worked hard to build a retirement fund, it may still be part of the equitable distribution settlement.
