How do we divide retirement in a North Carolina divorce?
Many couples have spent decades planning building a nest egg for their retirement. Then, one spouse decides the marriage is over, and those plans suddenly feel far less secure.
In North Carolina, retirement accounts (for example, a 401(k) or IRA) are treated just like other martial property and are subject to equitable distribution. In essence, a judge will determine what portion of the retirement is marital property and what portion is separate. The judge will then assign a value to the retirement for purposes of dividing it between the spouses.
This can become a very complicated process, depending on the types of retirement accounts. In this section, we will address common questions about the division of retirement plans, as well as tax and other implications.
Retirement plans are treated in the same manner as all other marital property, so one of the most important steps in dividing up your property is to determine where the property falls in the distribution.
Not all retirement plans work the same. Because of the variations found in the retirement plans, the court has a formula to help separate the property appropriately.
Understanding the use of Domestic Relations Orders for dividing retirement when a state employee is involved in a divorce.
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When a marriage ends, it is never easy. It can feel like there are a million things to consider — from the practical decisions about property and finances to the emotional heartbreak of ending a relationship.
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