Getting a divorce often means that you will have to relinquish some of the things you have worked hard to accumulate to your ex as decisions are made about how assets will be split. Depending on how long you have been married in Ohio, some of the assets that you will need to deliberate about include your home, your retirement savings, your joint bank accounts, and your car and belongings among other things.
Your retirement savings most likely makes up a considerable portion of your financial wealth and seeing it cut in half or more can be disheartening. Making confident decisions about what to do with the portion of retirement savings that you are given is imperative to your ability to begin accumulating your own financial wealth in preparation for your future as an independent person.
According to The Motley Fool, one important document to consider is called a Qualified Domestic Relations Order or a QDRO. This is a formal document that provides details about how employee-sanctioned retirement accounts will be separated between you and your ex. With a formal legal document in place, you may be able to avoid taxes and penalties that are usually tied to early withdrawals into retirement accounts. When dealing with an IRA, any transferal of funds has to be done as a transfer. Transferring funds as a distribution will almost always have repercussions for withdrawing funds before the designated dates on the initial IRA agreement that you signed.
The information in this article is intended for educational purposes only and should not be taken as legal advice.