Property division proceedings can often offer some of the tensest moments of the entire divorce process in Chapmanville. You likely go into them understanding that you will have to relinquish certain marital assets (or at least a percentage of ownership in them) to your ex-spouse. Yet you may be surprised to discover what exactly is considered to be a marital asset. One such surprise may be that your 401k is subject to property division. Given that the contributions made to it during your marriage likely came from marital income, they are also considered a marital asset.
Your retirement plans may hinge on you retaining the current amount in your 401k, which is why the prospect of losing any portion of it to your ex-spouse can be so disheartening. However, according to the 401k Help Center, there may be a way for you to retain its full value in your divorce. You would simply need to present your ex-spouse with a proposal relinquishing your claim to ownership of another marital asset in exchange for them giving up the portion of your 401k due to them.
While this might seem to be a simple proposition, you should know that your stake in whatever asset you give up has to be equal to the value your ex-spouse is forgoing from your 401k. That value is not the current value, but rather the predicted value of those assets once you reach the age of retirement. If you are still years away from retiring, that could mean a lot of added value from investment earning and interest. Thus, you may be asked to give up much more right now if you want to enjoy the full value of your 401k in the future.