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Dividing Retirement Funds | Atlanta Divorce

Scott Shaw | 636 Views | 10/22/2015

What Happens to Retirement Funds During a Divorce?

In a divorce, retirement funds may or may not be marital assets, and that’s a complicated issue. But generally speaking, if you earned the retirement asset while you were married it will be marital property, and, therefore, it will be subject to division under equitable distribution. 401K accounts through a process called a QDRO – Qualified Domestic Relations Order – can be transferred tax-free to the other spouse so you don’t have to worry about tax consequences.

What Happens to Pensions During a Divorce?

Fixed benefit pensions can also be transferred through a qualified domestic relations order of a different type, and can be transferred tax-free. Military pensions can also be transferred. Now, military pensions and federal pensions have their own unique aspects to them, but they can all be divided in a divorce. So, generally speaking, if the retirement funds are considered marital property, they are subject to division in a divorce.

Dividing Retirement Funds | Atlanta Divorce

What Happens to Retirement Funds During a Divorce?

In a divorce, retirement funds may or may not be marital assets, and that’s a complicated issue. But generally speaking, if you earned the retirement asset while you were married it will be marital property, and, therefore, it will be subject to division under equitable distribution. 401K accounts through a process called a QDRO – Qualified Domestic Relations Order – can be transferred tax-free to the other spouse so you don’t have to worry about tax consequences.

What Happens to Pensions During a Divorce?

Fixed benefit pensions can also be transferred through a qualified domestic relations order of a different type, and can be transferred tax-free. Military pensions can also be transferred. Now, military pensions and federal pensions have their own unique aspects to them, but they can all be divided in a divorce. So, generally speaking, if the retirement funds are considered marital property, they are subject to division in a divorce.