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Division of Retirement Accounts | Atlanta Divorce

Scott Shaw | 640 Views | 11/09/2015

Dividing Marital Retirement Funds in Atlanta

Probably the next most common question I’m asked about equitable distribution is how do you handle 401ks, IRAs, and other retirement accounts? Well one thing to know is if you have a 401k account, it is subject to be divided during divorce at least the marital portion of it, and it can be divided tax free through what’s called a Qualified Domestic Relations Order or a QDRO.

IRAs on the other hand can be divided tax free again, but you don’t need a QDRO to do it. You can do it administratively and normally through whatever brokerage account holds your IRA account. Other pension plans say like a fixed benefit plan where you get a certain amount per year after you retire, those two are subject to be divided once you determine what the marital portion is, and usually those are divided again through a QDRO that is called the same thing but it’s a bit different than a QDRO used to divide a 401k. All these assets can be divided tax free in a divorce.

Determining Marital Portion

Probably the biggest issue is just determining what the marital portion of these accounts are. Do not assume just because you don’t have a 401k that your spouse does not because you have an equitable interest in any 401k amounts of money accumulated during the marriage.

By: Scott Shaw

Division of Retirement Accounts | Atlanta Divorce

Dividing Marital Retirement Funds in Atlanta

Probably the next most common question I’m asked about equitable distribution is how do you handle 401ks, IRAs, and other retirement accounts? Well one thing to know is if you have a 401k account, it is subject to be divided during divorce at least the marital portion of it, and it can be divided tax free through what’s called a Qualified Domestic Relations Order or a QDRO.

IRAs on the other hand can be divided tax free again, but you don’t need a QDRO to do it. You can do it administratively and normally through whatever brokerage account holds your IRA account. Other pension plans say like a fixed benefit plan where you get a certain amount per year after you retire, those two are subject to be divided once you determine what the marital portion is, and usually those are divided again through a QDRO that is called the same thing but it’s a bit different than a QDRO used to divide a 401k. All these assets can be divided tax free in a divorce.

Determining Marital Portion

Probably the biggest issue is just determining what the marital portion of these accounts are. Do not assume just because you don’t have a 401k that your spouse does not because you have an equitable interest in any 401k amounts of money accumulated during the marriage.

By: Scott Shaw