Retirement Accounts: Asset or Stream of Income?

Retirement accounts in divorce are unique because they are both marital assets and deferred income earned during the marriage. Yet courts, attorneys, and even conciliators often treat them rigidly, pensions in pay status as income, IRAs and 401(k)s as assets, without fully accounting for the financial reality. Ignoring this dual nature can create inequitable outcomes, particularly when the spouse receiving support has sufficient resources.

A recent case in my practice illustrates this tension and, frankly, the frustration of advocating for clients when common sense is overlooked.

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