Dividing Retirement Accounts: Pensions, IRAs, 401(k)s & More

When dividing marital property, it’s important to consider assets that are payable or potentially payable in the future. These include retirement accounts such as 401k’s, 403b’s, IRA’s, Keogh’s, pensions or even part of an employee stock option plan (ESOP). If you or your spouse acquired assets in these types of accounts, before or during your marriage, they may be subject to equitable distribution when you divorce.

It’s a common misconception that one spouse has no right to claim a share of a retirement account when it has accrued value exclusively in the other spouse’s name. However, in Pennsylvania, this is not true in a majority of cases. In general, any value that a retirement account has accrued between the date of marriage and the filing date of the divorce complaint is subject to equitable distribution – regardless of which spouse’s name is on the account.

Because of the nature of retirement accounts, they may not be divided immediately when the judgment in the divorce occurs. Instead, the distribution of retirement assets may occur at a future date.

Handling the complex aspects of retirement accounts requires experience and insight. This is especially true when pre-marital interests are commingled with marital contributions. Our experienced attorneys are familiar with valuation issues and understand the complexity of retirement account rules, qualified domestic relations orders (QDRO’s) and other matters involved in dividing retirement accounts. We’ll take the time to discuss your available options and their tax ramifications.

 

When Older Couples Divorce

Many older divorcing couples may feel threatened or overwhelmed by the idea of dividing their retirement accounts. We understand and appreciate these concerns. At Saltzgiver & Boyle, we will work to preserve your assets and create a division plan that provides for you and supports your future lifestyle.

 

Protect Your Retirement Assets

To learn more about how the attorneys at Saltzgiver & Boyle can help protect your retirement assets in your divorce, contact us today to schedule a confidential consultation…