A person who is going through a high asset divorce in Pennsylvania may wonder how their 401(k) will be affected. Because a 401(k) is considered part of the marital assets, it may be divided in a few different ways. Proceeds from one spouse's 401(k) could be transferred to the recipient spouse's retirement plan, or the recipient spouse might be given a cash payment in one lump sum.
For Pennsylvania couples planning to dissolve their marriage, preparing for how certain retirement accounts may be divided during the asset-division process of the divorce can be helpful. Many accounts may fall into the classification of marital property, thus subjecting their contents to equitable distribution.