Divorce · Financial guide

How is retirement divided in a divorce?

Quick answer

Retirement assets are typically divided through a Qualified Domestic Relations Order (QDRO).

$140K-$280KAvg combined retirement (Fed Reserve)
$1,500-$3KQDRO preparation cost
10+ yearsMarriage for SS spousal benefits
$20K-$50KCost of QDRO errors

The full picture

Retirement assets are typically divided through a Qualified Domestic Relations Order (QDRO). The average divorcing couple has $140,000-$280,000 in combined retirement assets. QDRO preparation costs $1,500-$3,000, but errors in the division process can cost $20,000-$50,000 in lost retirement value.

A 401(k) split via QDRO avoids the 10% early withdrawal penalty. IRAs are divided through a transfer incident to divorce. Social Security benefits may be available based on an ex-spouse’s record if the marriage lasted 10+ years..

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