Setting money aside in savings is definitely no small task for most average Washington residents nowadays. In fact, throughout the nation, a fragile economy has created many financially challenging situations, some more difficult than others to overcome. For those currently navigating divorce, financial matters may be high priority, especially when it comes to answering questions regarding 401k funds and other savings and investment issues.
Some spouses go to great lengths to try to keep their former marriage partners from obtaining any portion of their savings for retirement. There have been incidents where people have actually hidden assets to keep them from being subject to property division laws. This type of behavior is not only rude, it’s illegal.
Divorce laws regarding marital property vary by state, so it’s best to seek clarification of any 401k issues or other situation that remains unclear before heading to court. Sometimes, a court will allow the money in a 401k plan to be distributed in divorce. Others say it must stay where it is until retirement.
Then again, some spouses ask the court to allow them trade assets of equal value. In such cases, one spouse may retain possession of 100 percent of the 401k funds while the other agrees to take something of equal value. To help negotiate such matters, an experienced Washington family law attorney may be of great assistance. A concerned spouse can have high hopes that each financial issue in divorce will be appropriately reviewed by the court, and an agreeable, fair solution will be found for any problematic situation that arises.
Source: 401khelpcenter.com, “In a Divorce, Who Gets the 401k?“, Accessed on Aug. 23, 2017