[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/nmichlaw.com\/blog\/courts-typically-split-retirement-accounts-in-michigan-divorces\/#BlogPosting","mainEntityOfPage":"https:\/\/nmichlaw.com\/blog\/courts-typically-split-retirement-accounts-in-michigan-divorces\/","headline":"Courts Typically Split Retirement Accounts in Michigan Divorces","name":"Courts Typically Split Retirement Accounts in Michigan Divorces","description":"People spend their entire working lives developing nest eggs for retirement. In some families, both spouses contribute to the same account. In others, one spouse may have a pension or a retirement fund through work. Regardless of how you\u2019ve been … Continue reading →<\/span><\/a>","datePublished":"2018-06-14","dateModified":"2025-05-09","author":{"@type":"Person","@id":"https:\/\/nmichlaw.com\/blog\/author\/nmichlaw\/#Person","name":"Alward Fisher","url":"https:\/\/nmichlaw.com\/blog\/author\/nmichlaw\/","identifier":10,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/63071aa228c966abd886a2cbb647b07806c39706d3fbac14fe9c4c475edc7457?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/63071aa228c966abd886a2cbb647b07806c39706d3fbac14fe9c4c475edc7457?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Alward Fisher","logo":{"@type":"ImageObject","@id":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/09\/logo-fisher.png","url":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/09\/logo-fisher.png","width":288,"height":103}},"image":{"@type":"ImageObject","@id":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/10\/feature-home-mobile-1.jpg","url":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/10\/feature-home-mobile-1.jpg","height":"100","width":"100"},"url":"https:\/\/nmichlaw.com\/blog\/courts-typically-split-retirement-accounts-in-michigan-divorces\/","about":["Firm News"],"wordCount":549,"articleBody":"People spend their entire working lives developing nest eggs for retirement. In some families, both spouses contribute to the same account. In others, one spouse may have a pension or a retirement fund through work. Regardless of how you\u2019ve been saving those funds, you\u2019re probably worried about what will happen to them in a divorce.Due to the unique nature of every marriage, there\u2019s no way to predict with absolute certainty how the courts will rule in a divorce. You can, however, familiarize yourself with the standard practices of Michigan family law courts and how Michigan law structures asset division.Michigan Laws Require Judges to Divide Assets EquitablyWhen it comes to handling asset division, Michigan law favors the\u00a0equitable distribution standard\u00a0over the community property standard. That means that judges have a bit more discretion and latitude when handling asset division. Equitable does not mean even, but rather fair.The courts can divide all debts and assets acquired during marriage, except for separate property that belongs to ab individual spouse. Examples of separate property include gifts and inheritances. However, retirement accounts and pensions may end up divided in a divorce. Even if they are held in the name of one spouse or offered through that spouse\u2019s employer, the value of the retirement account is usually marital property.Splitting Retirement Accounts in Divorce is Very CommonIf you have spent years building up a retirement fund, the thought of losing much of that value and incurring fees and penalties as well is probably upsetting. The good news is that although you will very likely need to split your retirement account, the court order issued in your divorce can protect you from penalties and fees.When ordered to divide a retirement account, you can use a Qualified Domestic Relations Order (QDRO) from the courts. The division of your account in accordance with a court order will not result in any kinds of fees or penalties. This can be particularly important for those\u00a0approaching retirement age.Sometimes, The Courts Don\u2019t Split the AccountThere are many ways for the courts to handle division of a pension or retirement account. Many times, they issue a QDRO to split the actual Roth IRA or 401k involved. If the account is a pension managed by an employer, the process could end differently. The courts could issue a spousal support order that requires you to split your pension funds with your spouse when you start receiving them.Other times, the courts could simply award your spouse other assets of similar value to the retirement account or pension in lieu of splitting the account. Regardless of how they actually handle the process, it\u2019s important to understand that your retirement account or pension are typically marital property and therefore subject to division.About the AuthorLatest PostsAlward FisherAt Alward Fisher, we provide more than savvy legal representation. We provide peace of mind. Peace of mind for your business. Peace of mind for your family. And the peace of mind for your future. No matter what types of legal challenges you are facing, we can help you find solutions.Can Someone with the Power of Attorney Change a Will?Can a Divorce Be Denied in Michigan?What Is the Downside of Collaborative Divorce?"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/nmichlaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Courts Typically Split Retirement Accounts in Michigan Divorces","item":"https:\/\/nmichlaw.com\/blog\/courts-typically-split-retirement-accounts-in-michigan-divorces\/#breadcrumbitem"}]}]