I Live In Pasco County, Florida - What Can I Do To Protect My 401(k) In The Event Of A Divorce?
For many people in Pasco Couty or Hernando County, their 401(k) or IRA is their largest asset, or their largest asset besides their home. They are often worried about protecting the retirement account in the event of a divorce. If you aren’t married yet, the best way to protect your 401(k) is using a prenuptial agreement. A prenuptial agreement covers what will happen to your assets in the event of a divorce. A prenup can specify that the 401(k) is your separate property in the event you get divorced.
If you are already married and don’t have a prenuptial agreement, and you are contemplating divorce, there are some steps you can take to protect a prenuptial retirement account. You should consider discontinuing contributions to your 401(k) as soon as possible after you decide you wish to divorce. If you continue making 401(k) contributions and the divorce drags on for months or even years, the money that you are currently contributing could end up in the pocket of your spouse.
You should also fight for your 401(k) in the divorce. If you had a substantial amount in your 401(k) before you were married, fight to retain that portion for yourself, and consider dividing up only the portion that was contributed after your marriage. Keep your 401(k) records so that you can show how much the account was worth before you got married.