Following equity in the marital home, retirement plan assets usually represent a large chunk of the marital assets. Splitting the retirement plan assets is accomplished by using a qualified domestic relations order (QDRO). Depending on the type of plan, the ex-spouse of the plan participant rolls over her/his share of the retirement plan assets into an IRA. If funds are needed post-divorce, the ex-spouse is also allowed to take an early distribution without a penalty if under age 59 ½. However, taxes will have to be paid on the distribution. Read this article for additional tips on managing retirement assets post-divorce.
