I just got a divorce and my wife was awarded $120,000 from my 401(k). This is going to delay my retirement plans. Is this fair?

For example, let’s say Bryce and Erica have been married for decades and recently divorced. The court said Erica gets around $120,000 from Bryce’s 401(k), which has Bryce pretty unhappy. He wants to know whether that’s fair, since he worked hard to save that money and now can’t retire on schedule.

Here’s what experts say about a wife getting a share of her husband’s 401(k) account.

How retirement accounts are divided in divorce

First, Bryce needs to know that Erica was given part of “his” 401(k) because divorce laws generally treat assets acquired during the marriage as shared property.

“One common misconception is that a 401(k) belongs entirely to the person whose name is on the account,” Melissa Murphy Pavone, a certified divorce financial analyst and founder of Mindful Divorce Partners, told Moneywise. “The portion accumulated during the marriage may be marital property and subject to division, even when only one spouse contributed.”

Damian Turco, managing partner at Turco Legal, agreed, telling Moneywise, “Retirement accounts are ordinarily considered marital property. Wealth accumulated during a marriage is commonly divided, even when it’s held in retirement accounts and more of it accumulated in one spouse’s name. The name on the account is not the final word on who is entitled to the money.”

Since the 401(k) is considered marital property, it will be divided either based on community property rules or equitable distribution rules.

“Most states follow equitable distribution laws, meaning marital assets are divided fairly, but not necessarily equally,” said Faran Douglas, a family law attorney at AskALawyerOnCall.com.

Community property states, on the other hand, do a 50/50 split of marital assets. Either way, though, the 401(k) will be grouped with other assets when property is divided under the state’s rules.

Is it fair for your ex to get a piece of your retirement money?

So, the law clearly entitled Erica to some of the retirement money. But is Bryce right to feel that this wasn’t the fairest outcome?