Is a 401k Included in A Divorces Property Division
Posted on Aug 15, 2013 12:00am PDT
One of the more challenging and complicated parts of a divorce is dividing
property. For Georgia and Cobb County, Georgia, divorcing couples, once
the divorce proceedings are progressing, it is easy to get lost in all
the confusion. This is especially true when it comes to the details of
property division. At times, a spouse can unintentionally renounce what
is rightfully his or hers.
Even in the most amicable divorce, it can still get very stressful for
a divorcing couple. At times, a spouse may hide or withhold assets. Often,
this is what happens to a 401(k) or retirement plan. A spouse is usually
under the false impression that since the 401(k) is primarily connected
to the other spouse's job, it cannot be divided in a divorce. This
is not always the case. A 401(k) can be part of marital property, the
property eligible for division, if it is clear that it is not considered
For the benefit of Georgia and Cobb County readers, separate property
is defined as assets that are acquired prior to marriage. This can refer
to real estate property, inheritance that is not co-mingled or shared
as marital assets, gifts, awards from personal injury lawsuits and properties
designated in a prenuptial or postnuptial agreement. This means that assets
that do not fall under the classification, this may include retirement
plans, can be subject to division.
Georgia is an equitable distribution state. This means that if a divorcing
couple is unable to reach an agreement when it comes to dividing marital
property, the court will decide on their behalf.
It is important to remember that when it comes to property division, it
may not be a 50-50 split. Equitable distribution means that it is what
the court deems fair or equal. Georgia and Cobb County divorcing couples
having trouble determining the distribution of assets may wish to seek
legal assistance to guide them through Georgia's divorce laws.