Retirement accounts are one of the largest assets that must be divided in many divorces. Since the couple was together for at least part of the duration of the account, it is considered marital property and included in the division.
Dividing these accounts can be complicated, depending largely on how each investment and account is characterized. It is important that you have a skilled attorney at your side, providing guidance and legal understanding to protect your interests.
QDROs and the Division of Retirement Accounts in Divorce
At Brandon Family Law Center, LLC, our family law lawyers are experienced in dividing property of all types, including complex retirement accounts. We will handle the division, committed to protecting your investments and your future.
If you are facing a property division, please contact our law offices to learn how your retirement accounts could be affected and how we can help.
Retirement accounts can be slapped with heavy tax penalties if they are touched before retirement. To avoid these early withdrawal fees when dividing them in divorce, you must characterize the account and divide it using specific tools.
If you have an IRA or a qualified plan, you may specify the division as a transfer incident (usually reserved for divorce) to divide the funds and avoid tax consequences. This will allow you to transfer assets to your spouse, at which point he or she becomes responsible for the future taxes and distribution costs.
You can then use a qualified domestic relations order (QDRO), attached to the account to complete the division.
These steps will help you avoid costly tax penalties and early withdrawal fees. At Brandon Family Law Center, LLC, our attorneys will guide you through this process, offering assurance that your future is protected.