Divorce and Retirement Funds
My Nashville divorcing clients frequently ask questions about dividing retirement funds. Attorneys tell me marital property including retirement funds are typically divided 50 / 50. If part of the retirment funds were earned prior to the marriage then, part of the funds are premarital funds, not marital property and not divided.
It is very helpful if you have a copy of the statement from the retirement account the month of the marriage. This provides the amount of funds that are premarital.
Pensions are also part of retirment funds and can be divided in a divorce settlement. Calculating the premarital portion fo the pension will allow for the marital portion to be divided.
Reviewing a net worth projection is the best way for those considering divorce to understand how much money they could have in the future. This projection will show the potential assets and debts received at the time of divorce, include monthly expenses, inflation, interest/dividens, depreciation/appreciation of assests, Social Security benefits and other factors unique to the case. The projection shows the net worth of the client overtime and how long their money will last. Clients tell me the projection helps them to understand the big picture and how making changes can financially impact their future.