Dividing retirement accounts during a divorce can feel complicated, but understanding the basics can help you manage the process more confidently. In Tennessee, retirement accounts fall under marital property, which means they are subject to division when you divorce.
What counts as marital retirement property?
In Tennessee, retirement accounts earned during the marriage usually count as marital property. This includes pensions, 401(k)s, IRAs, and other retirement savings accumulated while married. Any contributions made before the marriage or after separation generally remain separate property.
How does Tennessee divide retirement accounts?
Tennessee follows equitable distribution, meaning the court divides marital property fairly but not always equally. The judge considers many factors, such as the length of the marriage, the financial situation of each spouse, and each person’s contribution to the marriage. This means you might not get an even split, but the division aims to be fair.
What steps are involved in dividing retirement accounts?
Dividing retirement accounts requires a special court order called a Qualified Domestic Relations Order (QDRO). This legal document allows the retirement plan administrator to transfer the designated portion to the other spouse without penalties or taxes. Without a QDRO, you cannot divide most retirement accounts properly.
What should you keep in mind?
You should gather all retirement account statements and consult your divorce documents to identify which parts of the accounts are marital property. Understanding the valuation date—often the date of separation or divorce—is key to calculating the correct share.
Dividing retirement accounts in a Tennessee divorce involves careful evaluation and legal steps to protect your financial future.
