Protecting Your Finances in Divorce: What Do You Know?

The division of retirement accounts like 401(k)s or pensions is handled through a QDRO, a legal order issued as part of a divorce. IRAs, however, are divided via a divorce decree.

It’s also prudent to update other important documents, such as those for your power of attorney and health care proxy.

In community property states, marital assets are typically divided 50/50. In equitable distribution states, the division is based on what is fair, which may not be equal. Courts consider multiple factors to determine fairness. Check which type applies in your state.

Marital property can include assets acquired during the marriage, even if they’re only in one spouse’s name.

Closing or freeing joint accounts helps to protect your credit and prevent further debt accumulation by either party.