The Facts About Retirement Accounts & Divorce In Minnesota

If a spouse earns retirement benefits duringthe 401(k) plan. Typically (although every case is
marriage, the other spouse has a marital interestdifferent), a just and equitable division may mean
in such assets. As a Minneapolis Divorce Lawyer,that the marital asset be divided in one-half.
misconception to believe that retirement assetsConsequently, unless other extenuating
are individual assets because the individual earnedcircumstances were present, both husband and
them. Minnesota law is very clear in that if awife would each have a reasonable claim for
spouse earns retirement benefits during marriage,$50,000 of the wife's 401(k) plan.
the other spouse (just through the fact thatThe bottom line is that all retirement assets or
there is a marriage) has a"just and equitable"shareretirement benefits (including 401(k) plans, 403 (b)
in those retirement assets.plans, Individual Retirement Accounts, Pension
Assume that a divorce takes place and the wifePlans, etc) are all marital assets so long as the
had a 401(k) plan worth $100,000. Further assumebenefits were earned during marriage. The title of
that all contributions (whether made by the wifethe retirement accounts is irrelevant. Therefore,
or wife's employer) occurred after marriage. Injust because the husband has a retirement
this case,the entire $100,000 is going to beaccount only in his individual name, does not mean
treated as "marital" in nature.that the wife does not have an interest in it. The
Minnesota law calls for a "just and equitable"proper inquiry begins with whether the retirement
division of marital property. Therefore, in theasset is marital in nature, and the analysis ends
example referenced above, the wife and husbandwith a "just and equitable" division of this marital
would be entitled to a just and equitable division ofproperty.