Ruppert & Schaefer, P.C. | What Happens to Your Retirement During a Dissolution of Marriage Proceeding?

Divorces are complicated. Between dividing things like home furnishings and cars and deciding on parenting time and child support, one more thing to consider is what to do with what each party has saved for their retirement, assuming it was not accounted for in a prenuptial agreement.

Retirement accounts like 401(k)s, Roth IRAs, or Employee Stock Ownership Plans are in the name of one individual but what was contributed during the marriage can be divided between both of you. Essentially, a qualified valuator looks at what was added while you were married. That value is then considered part of the marital estate.

If you are a party who is to receive these funds during a divorce, an attorney must prepare a Qualified Domestic Relations Order (QDRO) and submit it to the financial institution managing the retirement account. Your portion is then transferred to a retirement account in your own name. This keeps you from facing tax consequences associated with early withdrawal.

If you have questions about your retirement account or your spouse’s, the attorneys at Ruppert & Schaefer, P.C. can advise you. To make an appointment with one of our lawyers, call (317) 580-9295.

Ruppert & Schaefer, P.C. | What about Life Insurance after Divorce?

Signing  divorce papers

Signing divorce papers

Following a dissolution or legal separation, one or both of the parties may be required to carry a life insurance policy (http://www.ameriprise.com/budgeting-investing/financial-planning-articles/saving-and-budgeting/insurance-concerns-after-divorce.asp). A newly-single parent may need to take out a policy to provide for their children in the event of death. The insurance money can take the place of what the deceased parent would have paid in child support and/or shared expenses.

There are two options when considering life insurance: whole life and term coverage. It’s possible term coverage may be more appropriate because it can be structured to provide for the children until they are emancipated. As with any financial planning, you should seek out the advice of a professional to learn what is right for you and your children.

The lawyers at Ruppert & Schaefer, P.C. can assist you with what financial planning may be required in your case and help you find the right professional to handle your affairs. If you would like to schedule an appointment with one of our attorneys, please call (317) 580-9295.