Everyone hopes that their divorce will go smoothly, but sometimes financial aspects can become complicated. In this article, we will discuss some of your top concerns about your 401(k) and divorce in Colorado. If you are unable to resolve these matters on your own, you will want the help of a qualified divorce lawyer in Denver.
We look at the ways to protect your 401(k) and other financial aspects you must consider during your divorce.
How to Protect Your 401(k) in a Divorce
To protect your 401(k) during a divorce, you want to have a solid financial planner or organization on your side. Unless you signed a prenuptial agreement, any funds that you’ve contributed to your account throughout the marriage are considered marital property and can be divided during your divorce.
Should You Cash Out Your 401(k) Before Divorcing?
In most cases, it’s best to wait until the divorce is finalized before you break up the 401(k). Any withdraw made in accordance with the divorce decree or settlement could be tax-free and penalty-free. Only a financial adviser can tell you what’s suitable for your situation.
What to Know About Finances During a Divorce
As you go through a divorce, there is a lot of financial planning that you should do. Consider reviewing the following finances:
- Life insurance policies
- Roth IRA or individual retirement accounts
- Credit cards
- Retirement income
- Prenuptial agreements
- Bank accounts
- Cash on hand
Before you start the divorce process, you want to review your finances with both an advisor and a highly-rated attorney. Otherwise, you could be losing money that you may be entitled to. Don’t leave any money sitting on the table.
Should You Stop Contributing to Your 401(k) During a Divorce?
It depends on your situation. Any marital asset that continues to accumulate value, such as your retirement accounts, real estate, and stocks, are all subject to division when the court grants the divorce. By placing a hold on your contributions during the divorce, you reduce the amount that will be split up, and you increase how much money you have to spend each month.
Find A Divorce Lawyer Near Me…
It’s imperative that you rely on a trusted professional during this time – it could make the difference between giving away your retirement savings and protecting your nest egg. Thomas Ramunda Jr. has 25+ years of experience and high customer satisfaction reviews, proving that he can navigate a multitude of situations to produce the best outcome.
If you are facing a divorce in Denver, you owe it to yourself to have a consultation with our team. We are ready to walk with you and show you how to maximize your financial standing through this divorce.
I am Seeking a Divorce Lawyer Near Me…
Divorce Lawyer In Denver, CO
610 Ulster Street, Suite 150, Denver, Colorado 80237 (Denver Tech Center) 303.840.2700.
Divorce Lawyer In Parker, CO
19590 E. Mainstreet, Suite 103, Parker, CO 80138 (Parker/Main Office) 303.840.2700.
Divorce Lawyer In Colorado Springs
We can help with understanding your 401(k) and divorce. Contact us today at 303.840.2700 to get your divorce consultation.