The equitable distribution of retirement assets, particularly those held in qualified plans, is a common issue in marital dissolution proceedings. This process involves legally separating a portion of a retirement account earned during the marriage and assigning it to the non-employee spouse. For instance, if a retirement account was funded with contributions made between the date of marriage and the date of separation, the court may order a portion of that account to be transferred to the other spouse.
Fairly allocating these assets is crucial for ensuring the financial security of both parties following the dissolution of the marriage. This aspect of property division seeks to acknowledge the contributions, direct or indirect, each spouse made to the accumulation of wealth during the marital union. Historically, these types of assets were often overlooked, potentially leaving one spouse at a significant financial disadvantage.
