The portion of a retirement account that was funded during the marriage is marital property subject to division. That is, if you put $1000 into the account during the marriage, the portion of the account that this represents at the time of the divorce will be subject to division. Funds that were in a retirement account prior to the marriage are generally not marital property. So if your balance is $10,000, but you only put in the $1000 in the year you have been married, only the portion you contributed during the marriage would be presumptively divided. In the event of a short marriage and a modest amount of 401k contributions, you may be in a position where the cost of dividing a pension just doesn't make sense.
Answered on Oct 29th, 2014 at 1:39 PM