With all the attention on securing your home, and other financial assets during the divorce, you might fail to hold on to possibly the most valuable asset that you own. The retirement fund, in many cases, is worth even more than the marital home, and it’s important to ensure that your rights are protected when it comes to this key asset.
Needless to say, holding onto your retirement funds is critical if you are older. If you are an older man, it becomes important to secure this key asset to ensure that you are not financially stranded after the divorce. Typically, pensions and retirement funds of males are valued higher. If you have been in a situation in which your spouse hasn’t worked for very long, and you have worked all your life, and provided for her, it is even more important to secure your retirement funds. Failure to correctly define, and allocate retirement funds could financially disastrous for you.
You must consider the tax implications of the division of your retirement funds. Make sure that you work together with an attorney to draft a Qualified Domestic Relations Order. This is a legal document that will be used to divide your retirement fund assets, between you and your spouse.
Remember, that the language used in the document must be very specific to avoid making the kind of mistakes that that can jeopardize you financially. Those mistakes can be financially crippling. If your retirement fund is very highly valued, you may find that you lose a significant amount of money because the Qualified Domestic Relations Order was incorrectly drafted.
Speak to a Colorado divorce lawyer for help understanding how your divorce will affect your retirement funds.