In many divorce cases retirement accounts are the biggest, or at least one of the biggest, assets.  Because of that, it is imperative to understand the options for transferring and dividing retirement assets in a way that maximizes the benefits and minimizes taxes.  Informed Consent is the Most Important Thing when Dividing Retirement in Divorce You don't want to make significant financial decisions about your future without understanding the financial consequences.  Retirement accounts are complicated, vary greatly in their requirements & plan details, and can result in significant tax liability.  If you don't feel fully informed when agreeing to how a retirement account or multiple accounts are being divided, then you are taking a financial risk that most likely cannot be undone once your divorce is final.  To avoid making uninformed or bad decisions, consult with retirement division and financial experts for information and advice before making these deci...

There are a number of questions that must be answered when dividing a retirement account in a divorce.  Divorcing couples are often focused specifically on the amount or percentage of the account funds that they are dividing.  It is also important, though, to identify the date of that division, and whether investment changes are included or not.  This information is necessary because dividing a retirement account is not as immediate as dividing a liquid asset. Dividing a retirement account in divorce requires a special court order (usually called a Qualified Domestic Relations Order or QDRO) .  The process of obtaining and implementing one of these orders is not immediate, and requires approval by both the court and the plan's administrator.  During this time, the account will change value.  Accounts change in value due to market fluctuations, but also due to withdrawals, loans, and ongoing contributions.  All of these changes can create havoc wit...