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Protecting retirement assets in a divorce

For Minnesota couples going through divorce the reasons for hiring a good attorney are virtually limitless. In addition to the benefit of having someone in the room that is knowledgeable about the process, when complex asset division is involved an attorney can mean the difference between a share in a family-owned business or even a decent retirement. The impact can actually be particularly profound on women going through a divorce.

According to the GAO, women appear to have a tougher time saving for retirement than men. One reason for this is that women tend to take more time out of the workforce than man to care for families and raise children. Taking time off of work not only means less cash in hand, it also means less benefits including retirement assets at the end of your work life.

Another impact of being out of the workforce is that women often times have less control over the finances. In a divorce this is very important. Understanding the full financial picture and what assets are available for division is key to a fair distribution. Some assets to consider in divorce include business investments, retirement accounts and stock portfolios.

It is important for both parties to negotiate a fair share of the assets in divorce. This includes retirement assets. Spouses are entitled to everything from pension income, employer-based retirement benefits, and even a portion of their spouse's social security benefits. Furthermore, as couples age, these issues only become increasingly important.

Men and women are equally entitled to a fair share of the family's assets. To avoid any confusion couples should consider having an accountant or tax attorney calculate the couple's net worth. This will provide both parties with a bit of certainty going forward.

Source: Reuters, "The Rules of Retirement for Women," Susan B. Garland, Aug. 30, 2012

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