One of the most stressful—and often misunderstood—parts of a divorce is what happens to retirement accounts in a divorce. For many people, their 401(k), pension, or IRA is the largest asset they own besides their home. The thought of splitting it with their soon to be former spouse can feel overwhelming.
Understanding how Indiana courts divide retirement accounts can help you protect your financial future and avoid costly mistakes.
Indiana Is an “Equitable Distribution” State
Indiana does not automatically divide property 50/50. Instead, Indiana follows the rule of equitable distribution, which means property is divided fairly—but not always equally.
Under Indiana law, all property owned by either spouse is presumed to be marital property, including:
- 401(k) accounts
- Pensions
- IRAs
- Military or government retirement plans
- Retirement benefits earned before and during the marriage
This surprises many people. Even retirement funds earned before the marriage may be included in the marital estate.
Are Retirement Accounts Always Split?
Not necessarily—but there is a presumption that all marital property should be divided equally. A court may deviate from that presumption after considering factors such as:
- Each spouse’s contributions to the marriage
- Whether property was owned before the marriage or inherited
- The economic circumstances of each spouse
- Each spouse’s earning ability
- Conduct of the parties as it relates to dissipation of assets
In other words, a spouse may argue they should keep more of a retirement account—but they must present evidence to support that request.
Talk to an Indiana Divorce Attorney
Dividing retirement accounts isn’t just a financial issue—it’s a legal one. A knowledgeable Indiana family law attorney can help ensure retirement assets are properly valued, fairly divided, and legally protected.
If you’re facing divorce and concerned about your retirement savings, getting advice early can make a significant difference in your long-term financial security.
Contact Dixon & Moseley, P.C.
Every divorce is different. The way retirement accounts are divided depends on your specific marriage, your finances, and your goals moving forward.
If you have questions about protecting your retirement in an Indiana divorce, contact an experienced Indiana divorce attorney to discuss your rights, options, and next steps. Dixon & Moseley, P.C. attorneys practice throughout the State of Indiana and understand when you’re retirement is at stake, you need an advocate to protect your interests. This blog post is written by Dixon & Moseley, P.C. advocates and is not intended as specific legal advice or a solicitation for services. It is an advertisement.
