A couple that has spent their life together in New York has probably accumulated assets throughout their marriage. Retirement accounts are often the most valuable assets they own. Therefore, figuring out how to divide these accounts can become a contentious issue during divorce proceedings, whether they are considered high asset or not. Since there may be applicable tax implications and their division is generally a complicated issue, the handling of retirement accounts during marriage dissolution is often improperly dealt with, which is why couples going through a divorce should understand the repercussions of their financial decisions.
If one party has an employer-sponsored retirement plan such as a 401(k) or a pension plan, then the other party is legally entitled to part of the balance as long as their isn't any prenuptial or postnuptial agreement stating otherwise. But what happens if only one spouse is working? In those circumstances, how can the other spouse protect their share of a retirement account? Through a Qualified Domestic Relations Order.