Addressing 401(k)s, Pensions And Other Retirement Assets In Divorce
Retirement accounts are significant assets for many couples. During divorce, 401(k)s, pension plans, profit-sharing plans and deferred compensation plans often play a key role in the property division process.
Dividing retirement assets – whether defined benefit or defined contribution plans – involves multiple challenges. Questions may arise regarding whether these assets are marital property or separate. In most cases, retirement accounts built during the marriage are marital property and thus subject to division. Accounts established before marriage may have both separate and marital components. However, other factors such as prenuptial agreements may change the picture.
Tax implications can also make it difficult to divide these assets. To avoid the tax consequences of early distribution, it is often necessary to secure a qualified domestic relations order (QDRO) designating an alternate payee.
Experienced Legal Guidance On All Aspects Of Asset Distribution
Frank, Gale, Bails & Pocrass, P.C., is a leading Pennsylvania law firm in the area of high-asset divorce and property division. Our attorneys understand how to successfully address division of retirement accounts and other valuable assets in divorce. We work to protect clients’ interests by:
- Identifying all retirement assets
- Characterizing assets as marital or separate
- Addressing issues regarding commingling of separate retirement assets
- Reviewing the details of retirement plan guidelines
- Drafting QDROs that meet the requirements of federal law and the plan’s guidelines
- Reviewing tax consequences
- Securing accurate current-day valuations of retirement assets
- Protecting clients’ rights at the trial level and on appeal
Our lawyers also assist clients with revising their estate plans after divorce, including updating beneficiary designations, wills, trusts and other core documents.
Learn more about what makes our firm stand out in this field.