When spouses decide to move on with the divorce, many things need to be taken care of. The most important one is asset division. Divorce itself is a major financial challenge, as every mistake costs more than you can afford to lose.

Division of retirement accounts is something most couples discuss, and something that always caused problems outside of the courtroom. How exactly is retirement divided during a divorce, and who gets what?

According to the law, all community property is to be divided into equal shares. This involves everything the couple obtained during their marriage. If the couple used a shared retirement account, it will be divided equally.

However, if the spouses had their retirement account set up before getting married, only the benefits obtained during divorce will be deemed community property, and thus shared in two equal parts. The spouses will get to keep everything they earned prior to getting married. There are some exceptions:

These are not listed as community property, and the spouse who earned them gets to keep them, without ever having to share them with the other spouse.

Consult with a Divorce Attorney in Salt Lake City and seek more information about asset distribution. Cal and schedule a free consultation, and receive a free case review. Learn what you have to share with your spouse after a divorce, and what you get to keep.

The following retirement benefits are subject to the necessary division:

Sometimes, retirement division is not required. The spouse without a retirement plan can receive a present value cash-out of the plan in its entirety. When this is done, pension actuaries have hired to calculate the value of the retirement plan. It is best that you consult with Salt Lake City Divorce Attorneys in order to find out all of your options, as well as how to maximize the cashout in case you don’t have a retirement plan.

In some cases, both spouses may get to keep their retirement contribution. If they both agree to take their own retirement contribution and waive the right to their spouse’s retirement, they may reach an agreement without any costly mistakes. In order for this to be possible, both spouses have to have a 401k account, and both accounts have to be similar in value.

One of the parties can be awarded a larger share of other community property if one of the spouses has a more valuable retirement account and they agree not to divide it.

In any case, you should consult with Divorce Attorneys in Salt Lake City and see what you can do to receive the highest amount possible. Don’t try and represent yourself in court, as you may lose than just one-half of your community assets.

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