In a marriage, retirement plans typically represent the largest segment of many couples’ financial portfolio. A retirement plan is significantly more important than property or assets because this money will be used to pay bills and buy food during elderly years. For many divorcing couples, the division of 401(k) and pension plans is of paramount importance. An important question is whether the entire asset is marital, meaning it is subject to equal division, or whether a part of it belongs to only one spouse, meaning it is separate property and non marital. The correct answer to this question is often worth large sums of money.
By thoroughly listening to our clients’ concerns and carefully examining their finances, we can develop an effective, creative solution to even the most complex concerns. Retirement plans can become complex for multiple reasons, including deferred compensation, plans with numerous employers and marital versus nonmarital contribution disputes. At Ansbro Law we have the legal knowledge and acumen necessary to guide our clients through these complex matters, and help them make decisions that will secure their financial future.
Dividing A 401(K) or Pension Plan
Retirement plans can mean different things to different couples, including:
- Pension plans
- Profit-sharing plans
- Stock options
- Roth IRAs
In order to avoid tax consequences, your lawyer will need to divide the retirement plans into two separate accounts. This process is completed through the use of a Qualified Domestic Relations Order (QDRO).