Retirement funds are a marital property asset

Financial experts say that not claiming a fair share of retirement funds is one of the biggest mistakes an individual can make when he or she is contemplating a divorce. In a survey sponsored by the Securian Financial Group, 31 percent of people who divorced after 10 or more years of marriage had staked no claim to their former spouse’s 401(k) or other retirement benefits. Some of these individuals weren’t even aware that they had a legal right to a portion of those funds.

In fact, many financial planners say that it’s smarter to negotiate for a share of retirement assets than it is to hold on to the house that served as the marital home. Whereas houses cost money to maintain and the future value of real estate can be difficult to predict, the value of the assets in a retirement account are likely to increase. Some experts even think that a division of retirement fund assets is a better deal than spousal support since alimony is taxable and typically a short-term solution.

A divorcing spouse who is 62 or older and was married for 10 years or more may also be entitled to collect up to half of his or her former spouse’s Social Security or disability benefits even if the former spouse has remarried. That may allow the divorced individual to put off collecting Social Security benefits under his or her own name until the maximum amount of that benefit has been reached. This will have no effect on the amount of benefits the former spouse may receive.

How We Can Help
If you, a friend or a family member find themselves in a situation such as this, please call the Law Office of Scott A. Ferris, P.A. at 305 670-3330 right away. Scott A. Ferris, Esq. is a licensed civil law attorney who has been practicing law since 1987. He is available whenever you need him to pursue your rights. Please learn about our firm at www.FerrisLawFirm.com.