Who Gets the Retirement Savings in Divorce?

According to a recent study, women have far less retirements savings invested in IRA accounts than men.

Women are both less likely to have IRAs, and likely to have less money deposited in any IRAs they do have.

There are several reasons for these statistics, including that women are more likely to be out of the workforce during childrearing years and, therefore, without earned income entitling them to make deposits toward retirement.

In light of these statistics, it bears repeating that:

  1. Under Florida law, pensions and other retirement accounts accumulated by either spouse during a marriage are marital property and are subject to property division in divorce. If a retirement account was opened prior to marriage, the portion of the account accumulated during the marriage is still considered marital property.

  2. A divorced alimony recipient responsible for the income taxes on his or her alimony may contribute to an IRA because of their alimony income, even if they don’t have earned income.

Read more in this Forbes commentary: Women Need To Play Catch-Up With IRA Savings.