Getting divorced can quickly take a financial and emotional toll on an individual in California. A major area of concern for those going through divorce is how to handle property division with their retirement funds. Here are a couple of tips for protecting a 401(k) during a divorce proceeding.
First, it is critical to understand the regulations and rules for one's retirement plan. The reason for this is that dividing retirement assets is not like dividing other kinds of assets. Unlike with other assets, the divorce court cannot simply require two divorcing individuals to divide their retirement accounts down the middle. Instead, a summary plan description provides important details regarding how a retirement plan should be split during a divorce proceeding.