You may not go into your divorce proceedings in West Caldwell thinking that yours is a high-asset case, yet you may quickly be surprised at just how much may be at stake once your property division proceedings begin. Many in your same situation come to us here at the Cipriano Law Offices, P.C. convinced that if there is one asset they do not want to have to part with, it is their 401k. You may feel the same way, given the impact that having to split any portion of it could dramatically impact your retirement plans. There may be a way that you can keep the entire amount, yet it is a decision that should not be made without first giving it a good deal of thought.
The 401k Help Center states that if you do indeed want to retain the entire amount of your 401k in your divorce proceedings, you should consider striking a deal with your ex-spouse: they forego their claim to their portion of the contributions made to your 401k during your marriage, and you relinquish your rights to a stake in a marital asset of equal value.
Seems simple enough, right? Just remember, however, that you are not asking your ex-spouse to give up their share of those contributions at their current value; rather, it is at the future value. Depending on how many years away you are from retirement, those assets could earn substantial additional income through investments and earned interest. While you will get to enjoy that added value once you retire, it might mean that you are forced to give away quite a bit more than you originally thought right now.
Information on this and other important aspects of asset division can be found by continuing to explore our site.