Take Care Of Your Retirement Assets During Divorce
Retirement accounts such as IRA, 401(k) and pensions are often among the largest assets a divorcing couple must separate. Therefore, you want to make sure you treat these accounts properly during the divorce process. Whether you and your spouse agree on your asset division or you find yourselves in conflict with one another, you need a skilled family law attorney to help make sure that you protect and properly divide your share of these assets.
Schepisi & McLaughlin, P.A., has dedicated attorneys with the knowledge and skill to help navigate the separation of your assets, including retirement assets. Negotiating an agreement with your spouse will always save you time, money and emotional conflict during a divorce. We will work hard to find a solution that protects your future. If you cannot reach an agreement, however, our attorneys are also skilled trial lawyers, ready to take your case to the judge.
When Are Retirement Accounts Considered Marital Assets?
Retirement accounts may contain both marital and nonmarital assets. The assets earned by the account owner prior to the marriage are separate assets and not subject to division. Benefits and contributions accumulated during the marriage are marital property, however, and must be divided equitably, regardless of whose name is on the account. You and your spouse may decide to swap assets. For example, your spouse may forego his or her share of your retirement account in exchange for the house.
Understanding The Tax Implications Of Dividing Assets
Tax implications are an important consideration when dividing retirement assets, as withdrawals are subject to taxation. Although your final judgment from the court will state how you will divide your assets, you may have to wait until after the judgment to separate your retirement assets.
For some types of accounts, you may divide your retirement benefits using a qualified domestic relations order (QDRO). A QDRO tells the financial institution how to divide the account without tax penalties. Our attorneys will help understand how the process will work in your case and consult with forensic accountants, valuation experts and other professionals to give you the best results possible.
Let Us Help
Discuss your divorce with an attorney in an initial phone conference. Call our office in Englewood Cliffs at 201-500-8914 or send an email today. We also have an office in Manhattan, if that is a more convenient meeting place for you.