How Are Retirement Accounts Divided in Divorce in SC?

shutterstock_273062174-960x640Many people are under the very common misconception that divorce in Rock Hill, SC only happens to young couples. However, recent studies and statistics show that the divorce rate among older couples has doubled in recent years. Divorcing when you are older brings up a completely new nest of problems such as how retirement accounts in SC are divided among the divorcing couple.

Honestly, you don’t even have to be reaching retirement age for retirement accounts, pensions, and social security to play into your divorce. For many couples retirement accounts are a big chunk of their net worth, making it really hard to decide on to divide them up if you are going through a divorce in Rock Hill, SC. If you are divorcing, then there are a few key elements that you might want to look at right away; these are listed below.

Pensions Vested or Unvested

Pensions whether vested or unvested are considered martial assets that must be divided among the couple. This is not the same as 401K’s, or retirement funds, so you will need a reputable attorney to help you determine what is a vested and what is an unvested pension, in order to see exactly how the pension should be divided.

Timing is Extremely Important

The first thing you need to realize when dividing a retirement account during a divorce in Rock Hill, SC is that timing is of the essence. In SC, you have a certain window of time where the accounts can be separated without having to pay taxes and penalties. If you wait too long to file the paperwork, it can end up costing you thousands of dollars that neither of you have to spare if you are in the middle of a nasty divorce.

How the Accounts are Divided Matters

If it were as simple as calling your account manager and asking that the funds be split, it wouldn’t be so bad. However, there are forms that have to be filled out and they can get quite complicated. It is best to hire a reputable divorce attorney to help you get the gears in motion and make sure that the paper work is filled out the right way and on time.

Must Adhere to Federal Guidelines

One tip to remember when getting a divorce in Rock Hill, SC is that the courts must always adhere to federal guidelines as well as state guidelines when it comes to dividing retirement accounts. It is critical that your written divorce agreement spell out exactly how these funds are going to be split, which is why it is highly important to have a reputable divorce attorney in your corner.

These are just a few tips that you will want to follow if you are getting a divorce in Rock Hill, SC and trying to divide retirement accounts. From knowing the laws to making sure that you file the paperwork on time, your best bet is to let your lawyer help you handle the situation the right way for all concerned.

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