Dividing assets during a divorce can be complex—especially when it comes to retirement accounts. For couples in Florida, understanding how these accounts are handled under state law is essential for protecting long-term financial security.

Retirement Accounts Are Often Marital Property

In Florida, most retirement assets accumulated during the marriage are considered marital property. This includes 401(k)s, IRAs, pensions, and similar plans. Even if the account is only in one spouse’s name, contributions and growth during the marriage are typically subject to division in a divorce.

How Retirement Accounts Are Divided

Florida follows the principle of equitable distribution, meaning marital property is divided fairly, though not always equally. Courts will consider several factors when determining how to divide retirement accounts, such as:

• The length of the marriage
• Each spouse’s financial situation
• Contributions to the marriage (including non-financial contributions)
• Age and health of each spouse

Often, a Qualified Domestic Relations Order (QDRO) is needed to divide employer-sponsored retirement accounts without incurring penalties or taxes. This court order instructs the plan administrator on how to transfer a portion of the account to the non-account-holding spouse.

Important Considerations

• Pre-marital contributions: Funds added to retirement accounts before the marriage may be considered separate property, but gains during the marriage can still be divided.
• Tax consequences: Different retirement accounts have different tax implications when divided. It's important to account for potential taxes when evaluating the total value of an asset.
• Negotiation options: Some couples may negotiate to keep their full retirement account in exchange for other assets of equal value.

How Legal Guidance Can Help

At the Law Office of Ric Woodward, we assist individuals in the Melbourne area with navigating the legal and financial aspects of divorce, including the division of retirement accounts. Our goal is to help you pursue a fair outcome while preserving your financial future.