One of the most common misconceptions related to divorce and financial matters is that retirement accounts must be completely liquidated. Many people believe that they will have to cash out their retirement accounts, then divide the money equally as part of a divorce settlement.
Fortunately, this isn't so. Liquidation might be an option, but it's absolutely not a necessity. One of the goals of Split Simple's divorce mediation process is to find a fair and equitable method for Denver-area clients to handle their retirement accounts.
Our mediators will craft the appropriate language for your settlement agreement that will later be referenced in the actual division of the retirement account either through a qualified domestic relations order (a QDRO), or "letter of instruction". It is extremely important that your Separation Agreement address certain retirement division issues in a very specific manner. Our attorney mediators have extensive experience in this area and will address all important issues.
You have many options. It's possible to set up an arrangement where one party is given a certain percentage or specific amount of a retirement account upon division. And more complex set-ups are also possible. In some cases it is even possible to make distributions from retirement accounts and avoid tax penalties.
The point is you have plenty of flexibility. Split Simple will work with you to find the right solution for you and your spouse. During your divorce you should not have to liquidate the retirement account you've worked so hard to build. Instead, work with us to determine how best to allocate these important assets.
If you live in Denver, Boulder, Aurora or any other Colorado community and you're considering divorce mediation, please call Split Simple today at 855-665-9920 for a free consultation.