“It should’ve been simple.”
That’s what the attorney thought when the settlement was signed. But months later, the client called – confused and frustrated. They were looking at a retirement account balance that didn’t match the agreement.
The market had grown. The other spouse moved funds. The plan didn’t track gains. And the language in the agreement didn’t account for any of it.
Now the client feels shortchanged, and the attorney is left explaining a gap that didn’t exist when the deal was done.
This is happening more than ever.
Delays between settlement and division are common. Plans don’t always track gains and losses. Clients sometimes invest or withdraw funds in the interim. And suddenly, numbers that once made sense no longer add up.
With over $43 trillion in U.S. retirement assets (401(k)s, IRAs, pensions) these aren’t theoretical problems. These are real financial consequences.
Here are a few lessons that came out of a recent deep dive with attorneys:
- Some retirement plans don’t track gains at all. When that’s the case, someone needs to.
- Equalization might seem fair but can shift risk if not calculated carefully.
- Clients may owe more than expected, especially if loans, rollovers, or fund movement aren’t considered.
- Missing records aren’t a dead end, but you need the right tools to trace and verify. Settlement language matters more than you think. A vague line can cost thousands.
- New Social Security rules are already affecting divorce negotiations, and few attorneys are prepared. Because once the agreement is signed, you can’t go back and fix it.
If you’re working on a case where retirement assets are involved, especially one with incomplete data or market fluctuations, I can help.
I’m also happy to talk through your options if you need guidance on dividing the account fairly or crafting a formal report to support your position in court.