If you are getting a divorce and have spent years saving for retirement, those assets may become one of the most important financial issues in your case. You may have retirement accounts from different employers, pension benefits or plans tied to your business.
In Ohio, retirement assets can be harder to divide when you have different kinds of accounts or money that built up both before and during your marriage. The types of accounts you own can affect how the court divides them.
Retirement assets that may become part of your divorce
You may think of retirement savings as a single 401(k), but large retirement accounts often include several types of assets. Your retirement savings may include:
- Contributing to employer-sponsored plans such as 401(k)s and 403(b)s
- Maintaining traditional or Roth individual retirement accounts
- Receiving future income through pension plans
- Participating in deferred compensation programs
- Holding government or military retirement benefits
- Building retirement savings through business-related plans
Different retirement assets follow different rules. If you have several types of retirement accounts, the court may look at each one on its own.
How Ohio divides retirement assets
Ohio courts generally treat property acquired during a marriage as marital property and divide it equitably. This means the court tries to reach a fair result based on the facts of the marriage and the property involved. It does not always mean each spouse receives exactly half of every asset.
Retirement accounts can raise additional issues because not every part of an account counts as marital property. You may have started saving in an account before your marriage, or one of your accounts may include separate property. Courts may review account records and contribution records to determine which portions qualify as marital or separate property.
Why some retirement portfolios become more difficult to divide
Some retirement accounts need more review. Your portfolio may become more difficult to divide if it involves:
- Combining savings from several employers over many years
- Accumulating retirement benefits during a long-term marriage
- Creating specialized plans through business ownership
- Calculating future payments from pension benefits
- Mixing marital and separate property within one account
These situations may require more financial records and account information. Those records can affect how the court classifies and divides your retirement assets.
Preparing for the division process
Retirement accounts do not always transfer in the same way as bank accounts or other property. Some retirement plans require specific court orders before any division can occur. Account statements, employment records and contribution records may help show what assets exist and what value they hold.
If you have spent years building substantial retirement savings, your accounts may need separate review and valuation. For many people, retirement accounts represent long-term financial goals, so they often receive careful attention during a divorce.