While divorce may be the best step forward for you and your spouse, there is no denying that it might significantly disrupt key areas of your personal life. In particular, going through with a divorce will likely entail splitting your retirement assets with your spouse and therefore setting back your own retirement plans.
Saving up for retirement takes a great deal of time and effort, so it is understandable if protecting your retirement accounts is a high priority for you in your divorce. If that is the case, it is important to understand what you can do to keep those accounts intact.
Know how Kentucky disposition of property laws affect retirement accounts
Kentucky laws on the disposition of property in a divorce state that the court will divide marital property equitably between spouses on the basis of the amount of contributions, the value of overall property, duration of marriage and economic circumstances. This includes any contributions made to retirement accounts during the course of marriage unless one or both spouses have retirement accounts excepted from the classification of marital property.
Negotiate a separation agreement with your spouse
Though a judge will pass a ruling based on what the court deems most fair, you have the option to determine your own outcome regarding the disposition of marital assets alongside your spouse. If your spouse is open to compromise, you can seek to arrive at a mutually-beneficial separation agreement either through mediation or arbitration that takes place outside of the courtroom.
Protecting your retirement accounts in a divorce may require cooperating amicably with your soon-to-be ex-spouse. If both sides are willing to compromise, you can each walk away from the marriage with what matters most to you.