How Are Retirement Accounts Impacted By Divorce?

If you are dealing with divorce, you need to make sure you understand the law when it comes to the distribution of retirement accounts, especially since these accounts are often a couple's largest assets.

At the Thomas Family Law Firm, PLC, we understand how important retirement accounts are to your financial future, and we will do everything we can to help you seek the benefits you may be entitled to during divorce. We will carefully explain your options, including the legal and tax consequences of each, so you can make an informed legal decision.

You and your spouse may have spent years preparing for retirement, so let us help you get your fair share if the two of you decide to divorce.

Retirement Account Division

As with all other asset division during divorce, retirement accounts are subject to equitable division if you and your spouse decide to split. In fact, regardless of whether only one spouse has contributed to the retirement accounts over the years, they are still eligible for division if they were earned or accrued while the two of you were married, thus making them marital property.

Retirement accounts that may be subject to division upon divorce include:

  • 401(k)s
  • Pensions
  • IRA and Roth IRA accounts
  • Military pensions

Dividing retirement accounts is rarely an easy task. In many instances, the valuation process can be quite complex, not to mention you may also need a qualified domestic relations order (QDRO), which is essentially a court order that advises the administrator of a retirement plan on how to distribute the retirement funds to you and your ex-spouse. Oftentimes, it is best to seek experienced legal guidance if you have questions about retirement accounts and divorce.

Help Is Just A Phone Call ― Or Email ― Away

Contact the Thomas Family Law Firm, PLC, to speak with a family law attorney today. Unlike some other firms, we focus solely on family law ― meaning we are familiar with even the most recent family law issues and changes in the law.

With lawyers licensed in both Tennessee and Mississippi, we serve clients in the Memphis area as well as North Mississippi. Contact us at our office in Germantown today by calling 901-443-4599, or email us online.