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Guide to Asset Division: Retirement

Going through a divorce can be a challenging and emotional experience. In addition to dealing with the emotional impact of a divorce, dividing assets such as retirement accounts can be a complicated process. 

Retirement accounts can be significant assets and are often subject to division during a divorce in Georgia. Many times, after the equity in a couple’s home, their combined retirement is their largest asset. This is why it is essential to have a clear understanding of how these assets are divided. 

Our firm is proud to provide our community and clients with legal information related to family law. Any legal information here does not serve as qualified legal advice, however we hope to share some basic understanding of how the divorce process works. 

Let’s go over how asset division works in Georgia, specifically how it relates to retirement accounts. As an Atlanta-based family law firm, we are committed to providing you with the information and resources you need to navigate this challenging time in your life. If you’re considering a divorce but you’re worried about the impact it can have on your future give our firm a call.

Retirement Accounts and Divorce – What Georgia’s Laws Say

In Georgia, the courts aim to divide marital property equitably between the spouses, rather than equally. This equitable division approach ensures that the division of property is just and appropriate. Typically, all assets acquired during the marriage are considered marital property and are subject to division.

  • Assets accumulated before the marriage are considered separate property, and therefore not subject to division with your spouse. 
  • However, assets accumulated after the marriage are considered marital property, and must be distributed equitably in accordance with the law.

Georgia law mandates that all contributions made by either spouse to any retirement account, such as a 401(k), an IRA, or a pension, during their marriage are subject to equitable division. Although the earning spouse may keep any pre-marital balance as separate property, the portion accumulated during the marriage is subject to division. Even unvested retirement funds in a pension are considered marital property and can be divided accordingly.

401(k) specific funds can be divided with a QDRO, or Qualified Domestic Relations Order. A QDRO provides instructions to the plan administrator on how to distribute the benefits due to the non-employee spouse. The IRS recommends using this order before any disbursement of the 401(k) account by the administrator.

What a family law attorney can do to help

It is always advisable to consult with an experienced family law attorney who can guide you through the asset division process, ensuring that your rights and interests are protected. Our Atlanta-based family law firm is dedicated to helping our clients through every aspect of their divorce, including giving you a full breakdown of the asset division process of your case. If you have any questions about the asset division of retirement accounts, please do not hesitate to contact us for a consultation. We are here to help you through this difficult time.