So you are going through a divorce in Utah and it dawns on you, “what about my 401k?” Or maybe you are thinking “what about my spouse’s 401k, do I have an interest?” We understand that in many marriages, especially those that are of a longer duration, the highest value asset may be the 401k or maybe multiple 401ks. So how does the law deal with these and other retirement benefits? We have found that many clients have incorrect initial perceptions on this issue. We hear all kinds of things regarding the retirement benefits in a marriage such as, “I heard he/she doesn’t have any interest in my retirement because they never worked.” The truth is that the divorce law in Utah is very clear when it comes to retirement benefits including 401k, IRA, pensions, and other assets.
Utah Law on Dividing Retirement Benefits in a Divorce
Generally speaking, Utah courts follow the general rule found in Woodward v. Woodward when it comes to dividing retirement benefits at the time of divorce. The general rule is that any retirement benefits which accrued during the time the parties were married is to be divided evenly. In some cases a majority of retirement is accrued prior to the marriage and thus little retirement is divided. However, ion many cases all of the retirement was accrued during the marriage and thus the parties ended splitting the retirement 50/50. Now in some cases it makes sense to for both parties not to necessarily follow the Woodward rule. For instance, maybe the tax penalties on the parties would make it better for each if a different agreement was reached, maybe one spouse loses out on retirement but gets more in a property settlement. This is why it is so helpful to have an experienced Salt Lake City family law attorney to help you think outside of the box and explore different options for settling retirement.
Call Salcido Law Firm for Help Now: 801.618.1331
At our office, we have represented numerous individuals through the sometimes complex process of dividing retirement benefits like a 401k. We can help you achieve your goals in this area and will provide you with all of the most current legal advice and potential consequences to your matter. We offer free consultations so there really is no reason not to meet with a member of our team today. A Utah divorce attorney at Salcido Law Firm can get you on the road to your new life now.