Dividing Retirement Assets in Divorce

Many family lawyers for men will share in the sentiment that dividing assets and money can be the most complicated part of any divorce. This can get even more complicated if retirements accounts are at play, and are often a part of large contention.

It’s important to remember that retirement accounts are often regulated by the government and involve precision and expertise when dividing. If retirement funds are not handled properly during a divorce, both parties could pay a significant sum of money in taxes, penalties, and fees.

Since retirement funds are often kept at a financial institution of one spouse’s employer, a family lawyer for men will need to file a qualified domestic relations order to properly distribute the funds. Otherwise known as QDRO, these filings are not automatically added to a divorce agreement, so it’s important to discuss with your attorney the pros and cons of including it in your final agreement. Filing a QDRO will often allow the funds to be withdrawn and placed into an IRA or other retirement account without tax penalties.

Since Florida equally distributes assets, it can be important to determine funds that were contributed to your IRA account prior and during your marriage. A court will likely divide the money that was added during your marriage, but any funds added to a retirement account prior to marriage will be considered separate property.

Your spouse is legally entitled to part of these funds unless a pre-nuptial agreement is in place stating otherwise. Likewise, you are entitled to a division of your spouse’s retirement funds as well. Make sure your family lawyer for men is knowledgeable in qualified domestic relations orders when filing for divorce.

If you are seeking a reputable divorce attorney, contact In Law We Trust for a confidential consultation on your divorce filing needs.