How Do Retirement Assets Factor into Property Division in a Florida Divorce?

Property division can be one of the most challenging aspects of a divorce Florida. For many couples, their retirement assets are among their most valuable assets. Retirement savings can be a big factor for equitable distribution considerations. Here, our Clearwater property division attorney explains how retirement assets factor into the property division calculation in a divorce in Florida.

Florida Divorce: Retirement Assets are Subject to Equitable Distribution

First and foremost, it is important to emphasize that Florida does not have any special divorce law that governs the distribution of retirement savings. Under Florida law, all marital assets and liabilities are divided through equitable distribution. Separate property, including separate retirement savings, remains the sole asset of a specific spouse. Florida Statutes § 61.075 defines marital assets as property acquired by either spouse during the marriage, regardless of whose name is on the account. To be clear, that includes retirement savings such as:

• 401(k)s;
• IRAs;
• Roth IRAs;
• Pensions; and
• Other deferred compensation plans accumulated during the marriage.

Contributions made before the marriage are typically considered nonmarital assets, unless there has been some commingling of funds or other reason why the savings has converted to a marital assets. However, any increase in principal value or additional deposits during the marriage are subject to equitable division even if the retirement account was open before the start of the marriage.

Equitable Distribution Considers the Totality of the Circumstances

Florida follows an equitable (not equal) distribution model for divorce. A 50/50 split of the property is by no means guaranteed by law. Judges assess numerous factors as outlined in Florida Statutes § 61.075(1), including:

• The length of the marriage;
• Each spouse’s economic circumstances;
• Each spouse’s contributions to the marriage; and
• Any intentional dissipation of marital assets.

For retirement accounts, these factors can determine how much of each spouse’s share is awarded. As an example, a spouse who paused their career to support the other’s advancement or to manage household duties may receive a larger share of retirement benefits. 

You Generally Need a QDRO to Divide Retirement Assets in a Divorce

Retirement assets are often tax-advantaged. It is important because it has implications for the mechanics of dividing these assets in a divorce. You do not want to risk tax penalties or early withdrawal fees. The Internal Revenue Service (IRS) explains that a Qualified Domestic Relations Order (QDRO) can be used to divide retirement assets (401(k), IRA, etc) in a divorce without adverse tax implications. An experienced Florida divorce lawyer can help.

Get Help From a Florida Divorce Attorney for Property Division Today

At the Law Office of Gale H. Moore P.A., our Clearwater property division lawyer has extensive experience handling cases involving retirement assets, including IRAs, 401(k)s, and pensions. If you have any questions about your options, contact us today for a confidential consultation. Our firm handles property division cases in Clearwater, Largo, and throughout the entire region.