Is Divorce Derailing Your Retirement Fund?

Is Divorce Derailing Your Retirement Fund?

Core Facts

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Just as getting married involves financial decisions, so does divorce. Splitting up your assets is one of the main areas of concern – and this includes investments and retirement accounts. It’s important for each of the partners to retain some of the retirement fund.

No matter what your age or financial situation when you divorce, there will come a time when you want to retire. Splitting the assets so that one gets the property and the other one gets the retirement fund is not always the best solution.

For women, this is even more important than it is for men, because women tend to live longer and need more retirement money to fund their golden years.  Here are some things to keep in mind if you get divorced:

Individual Retirement Accounts: Even if the retirement account is only in one person’s name, it can be shared in the event of a divorce. Proper handling is critical in ensuring that the right party is responsible for paying applicable taxes. The type of retirement plan – an IRA or a qualified plan – determines the rules that apply.

Take Protective Action If you’re concerned that your spouse may take actions on a joint account during the divorce proceedings, consult a financial professional about freezing the assets until you reach an agreement.

Liquidating Assets:  

Make sure you get professional advice on any tax implications before you liquidate assets. Cashing in annuities early can trigger steep penalties. 

Dividing financial assets during a divorce can be an emotional task. Find a financial professional who can guide you through the process and make it as painless as possible. FINRA offers a series of steps to follow when it comes to finding and doing business with a financial pro. A key step is to see if the individual you are considering is registered.




Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website:

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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