For many people, comfort in their later years depends on their retirement savings and benefits. However, the divorce process can be cause for concern. What will happen to your retirement savings in divorce? Will you still have enough to retire in the way you intended?
Does the court divide retirement accounts?
In Nebraska, the court recognizes two different types of property: marital and separate. Marital property includes most property acquired during the course of a marriage, including retirement accounts and pension plans. As a result, the funds you placed in your retirement accounts during your marriage will probably be subject to division. The court will consider savings set aside before your wedding to be separately owned.
How will the court divide retirement savings and benefits?
If your retirement savings is included in your marital estate, that savings may not necessarily be divided in half. Instead, Nebraska courts work to create fair division of property. This may mean that one spouse could receive a greater portion of the couple’s marital estate if they have costly health issues, will have greater responsibilities for the couple’s children or other unique concerns.
It is also possible for couples dividing their retirement savings to create solutions based on their own priorities. For example, one spouse may keep their retirement savings intact in exchange for allowing the other to keep another asset of similar value like the family vehicle.
While retirement savings is usually subject to division in divorce, divorcing people can create legal strategies that protect that investment in their future.