{"id":11383,"date":"2021-06-02T11:50:53","date_gmt":"2021-06-02T15:50:53","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=11383"},"modified":"2021-06-02T13:59:00","modified_gmt":"2021-06-02T17:59:00","slug":"divorce-and-retirement-assets","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/divorce-and-retirement-assets","title":{"rendered":"Divorce and Retirement Assets."},"content":{"rendered":"\n

As the world slowly begins its back-to-normal phase, the aftermath of the pandemic has left a lot of devastation in its wake. If your marriage didn’t survive quarantine, you may be wondering how the division of financial assets will play out. Here\u2019s what you need to know. <\/strong><\/p>\n\n\n\n

Divorce can be hard to deal with emotionally, and it can also come with financial challenges. When it comes to asset division, your assets may be awarded to one party. Whether you are giving up funds or receiving them, you need to understand the rules that govern asset division in a divorce. <\/p>\n\n\n\n

Property Division 101<\/h4>\n\n\n\n

Since retirement plans can be of significant value and often come with important tax implications, it\u2019s critical to understand how they are divided in a divorce so that your interests are better protected.<\/p>\n\n\n\n

There are two types of property division in divorce, depending on where you live: community property division and equitable distribution.<\/p>\n\n\n\n

If you live in a “community property” state, the law considers all assets and debts acquired during the marriage as “community property.” Community property means that both spouses own the property jointly, and the court will divide the property equally (50\/50) between the spouses at divorce. This can include contributions to retirement accounts such as 401(k) accounts.<\/p>\n\n\n\n

Is Iowa a Community Property State?<\/h4>\n\n\n\n

The state of Iowa does not follow community property laws. Instead, Iowa is an equitable distribution state:<\/em> meaning Iowa law recognizes that some assets are a spouse’s separate property and the court will not divide these in a divorce. Any portion of your retirement plan earned before you were married is your separate property.<\/em><\/p>\n\n\n\n

Some factors considered by Iowa courts in a property division case include non-monetary contributions, contributions to a partner’s education and a list of other factors defined in Iowa law.<\/p>\n\n\n\n

During divorce you can make decisions with your spouse to divide assets and liabilities, or you can request the court make a ruling for you. Generally, agreements made at between spouses are a better fit for each party than those handed down by a court that has little knowledge of your family and financial situation. <\/p>\n\n\n\n

Is there a set list of statutory factors for determining property division in the state of Iowa?<\/h4>\n\n\n\n

Iowa has a list of factors set by statute that specify what the court will use to determine a fair property division. Examples of factors that are often taken into consideration during property division cases include:<\/p>\n\n\n\n