The disposition of retirement assets during dissolution proceedings is frequently a complex issue. One specific area of concern revolves around contracts designed to provide a stream of payments in retirement. These arrangements, established through either a lump sum or series of contributions, are designed to offer financial security later in life. The question of how these contracts are treated during a divorce is multifaceted and subject to state laws and specific contractual provisions.
The treatment of these assets is significant due to their potential to provide income and long-term financial stability. How they are viewed can affect both parties’ financial futures post-divorce. Courts may consider these assets marital property subject to division, or separate property, depending on factors such as when the contract was initiated, the source of funds used to purchase it, and the laws of the jurisdiction.
