When couples divorce in Colorado, the process is very seldom an easy one and can be wrought with a number of difficult and emotionally charged issues. One of the most complex matters that could be faced in any divorce is property division. One question that needs to be asked when dealing with this issue is how to divide retirement assets. A recent article highlights this question and offers some guidance to those who might find themselves in this situation.
According to the article, there are a variety of details that need to be covered depending on the type of account. Ignoring the details and making mistakes can have a devastating impact on these accounts. For example, taking into consideration what should happen due to the death of the spouse holding the account can ensure the surviving spouse isn't left with nothing. It can also a good idea to designate percentages to be received rather than specific amounts to protect the employed spouse.
The tax implications that come with the division of retirement accounts is of extreme importance because of the effect it can have on the divorcing couple. Using the proper documents and making sure the transfer is handled correctly are two of the things that can decrease the chances of a mistake being made. Another area worthy of attention and detail is the naming of a beneficiary to keep the ex-spouse from gaining any assets that were not intended for him/her.
It is not uncommon for married couples to have a variety of marital assets, which makes property division one of the most important issues in any divorce. Since retirement accounts can be one of the largest assets held by a couple, they deserve serious attention and detail. One way for Colorado couples to make this process easier is to work together. By working together and understanding the applicable laws, both parties can manage to be treated fairly and make this difficult time more manageable.
Source: BusinessDay, How to divide your retirement assets in a divorce, No author, Dec. 31, 2013