How Does Divorce Affect Your 401(k) Plan?

When you consult divorce lawyers in Owings Mills, one of the issues you should discuss is your finances. Your divorce lawyer will review your assets and liabilities , and advise you as to what you might expect from the divorce decree. For example, under family law, your spouse and dependents may be entitled to receive a percentage of the proceeds from your 401(k) plan.

You can hear more about this issue by watching this brief video. This family law attorney explains that the court can issue a qualified domestic relations order, which lists the recipients of a portion of your 401(k) plan. As your family lawyer can inform you, when this order is issued, you’ll be required to send a copy to the administrator of your 401(k) plan.