What Happens to Your Retirement Benefits When You Divorce?

Although every retirement plan has its own rules, generally all of your assets and debts are added up and divided. North Carolina is a “no fault” property state so in most cases, all marital assets and debts will be divided equally. If you or your husband or wife has retirement benefits but one has more or is receiving more assets from other sources such as real property or bank accounts, a rollover from one spouse to the other can be used to equalize the spouses’ assets. The rollover is a non-taxable transfer and practically the non-participant spouse gets an account with the retirement plan just like the participant spouse and can withdraw the funds, move them to another retirement plan or leave them with the original plan.

If you and your spouse are separating it is important to take all retirement plans into consideration when dividing your assets and the attorneys at Black, Slaughter & Black can help you assess those assets and put a plan into place to divide them prior to divorce if possible.