Once a couple in South Carolina files for divorce, everything that’s considered marital property might be up for grabs. Marital property is defined as a financial asset that was acquired during the marriage. Since a 401(k) can accrue money during a marriage, a spouse might be entitled to a portion of this retirement asset.
If you contributed to your 401(k) before you got married, that money will be considered separate property not be divided up in the divorce process. However, any money that you accumulated during the marriage might be considered marital property.
To figure out how much of the retirement fund they’ll have to give their former spouse, an individual must first determine its value. Once they’ve done this, they’ll have to talk to their plan administrator and figure out an agreement for dividing the assets. They’ll also have to take taxes into consideration when figuring out how to divide their 401(k).
However, they might not have to divide their plan in every case. If both individuals have their own 401(k)s with roughly the same amount of savings, they might decide to keep their accounts and move on to the next stage of the property division process.
An attorney can help a client with various aspects of a divorce, including child custody, visitation rights, spousal support and property division. The lawyer could determine which assets are separate property and which are marital property. Additionally, an attorney might help the client negotiate with their former spouse so they can keep some of their assets while offering others in exchange.