Once the big decision to get a divorce is made, there are many smaller steps to be taken. While sometimes a couple's settlement agreement will lay out what needs to be done to finalize the divorce in Kentucky, it is important to keep certain steps, such as the division of property, in mind. This is especially true when it comes to retirement plans and selling the family home, if that is what the couple chooses to do.
In some situations, a spouse may be mandated per their settlement agreement or divorce decree to transfer a portion of his or her retirement savings, such as a pension plan, 401(k) or their individual retirement account (IRA), to his or her partner. When it comes to 401(k)s and pensions, the transfer may need to be done through a qualified domestic relation order.
For the spouse who is to receive part of their ex's retirement savings, there needs to be a plan into place as to what will be done with those funds. The funds can be funneled into a Roth IRA, for example. It is important that any transfers be done between custodians, to avoid negative tax consequences.
In addition, the couple's settlement agreement or divorce decree may state that the spouses' marital home should be sold. If this is the case, it may be helpful to enlist the aid of a real estate agent. This person can help spouses decide what improvements can be made to the home. In addition, if one spouse is still residing in the home, the other spouse should make plans to take back his or her personal property. It is important to document all of this in writing, so one has it for his or her records.
These are only a couple of steps that couples need to take when dissolving their marriage. Couples should consult their settlement agreements or divorce decrees to ensure that the divorce process runs smoothly.