Among the most heated asset division topics related to divorce, retirement accounts like your 401k are subject to the division of marital property. 401k savings accrued before your marriage are often considered separate property, and earnings or growth that occurred during your marriage are likely to be divided. Of course, the division of assets is never a cut-and-dry process, and how your division plays out can vary significantly from another couple’s asset distribution plan. 

In states like New York, Equitable Distribution determines how the 401k funds will be divided. In other words, the split is determined by relevant financial factors and lifestyle considerations for each spouse, rather than a 50/50 split that doesn’t account for factors like spousal support, ongoing expenses, or earning potential. A judge will decide for you, or a divorce mediator can help you organize a fair distribution plan that takes every important consideration into account. 

Factors that can influence the final percentage of retirement funds received by each party include:

Each of these interconnected factors can have a varying level of impact on the final retirement account split. For example, if you will be the primary caretaker for your children, it only makes sense that you receive a larger portion of the retirement funds to assist with the ongoing child-related expenses. 

Access a Fair Distribution That You Can Both Agree With

Instead of leaving the final decision up to the courts, divorce mediation is a better alternative if you are both willing to discuss a fair plan. During divorce mediation, you meet with our team in a neutral, unbiased environment to discuss and organize every detail of the divorce agreement. We focus on the facts of the situation and work together to determine a fair and reasonable compromise that is 100% legal and equitable for everyone involved. 

There are a wealth of benefits associated with divorce mediation over traditional legal proceedings. We are capable of addressing every subject associated with financial agreements, and will help you: 

Learn More About Divorce Mediation 

By choosing divorce mediation over court proceedings, we hope to alleviate stress, and complications, and ensure that a mutually-beneficial agreement is a result. For guidance, get in touch with our experts at Long Island Divorce for free information today. 

This content was originally published here.

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