During a divorce, retirement plans are sometimes divided in a special manner. Why is this?

Most states treat retirement plans as marital assets, especially if they were earned by both spouses over the course of a long term marriage. Retirement plans don’t necessarily have to be divided at the time of divorce, but the value of the plans should be part of the divorce negotiations.

During a divorce, retirement plans often have to be divided in a certain way, since Federal law governs many of these plans. For example, 401Ks and various other types of plans have special tax treatment and special rules for withdrawal. This means that the money can't just be taken out and divided up by each spouse as part of a settlement decree.

When it comes to retirement plans, how is post-divorce property division determined?

Many retirement plans allow you to make contributions to the plan before taxes are paid, but you must do so within certain guidelines and there are restrictions on age limits for withdrawal and other special rules. When a couple divorces, these tax-advantaged retirement plans are generally divided by a Qualified Domestic Relations Order or QDRO. The QDRO will spell out how much each spouse will receive when it comes time to collect on the plan in the future.   

What are the rules regarding divorce and retirement plans?

The way a retirement plan will be divided depends on the type of plan it is, because a QDRO is used for certain types of qualified plans only. 

• IRAs are generally considered “transfer incidents” and do not need a QDRO. IRA assets are divided in the divorce decree. The decree has to state how the assets will be allocated and whether they are shared equally, whether one party gets the whole amount, or whether they are divided in another way.  
• Defined contribution plans generally do need a QDRO. With a defined contribution plan, the employer, employee, or both make certain contributions to the employee’s account at regular intervals. Even though the balance changes each year depending on interest, capital gains, etc., it is fairly easy to come up with a value at any given time. Some of these types of plans are 401(k), 403(b), and profit sharing plans.  

Should I get help?

If you are considering a divorce, retirement plans are just one of many assets that will need to be divided. It is in your best interest to contact a lawyer who can assist you in determining the proper way to split up your assets and separate your finances. 

Get a Free Case Evaluation From An Experienced Attorney

Have your case evaluated by an EXPERIENCED DIVORCE ATTORNEY.
It's free and there is no obligation.

Sponsored Form

Name
Current Address	Select Your State Alaska Alabama Arkansas Arizona California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana North Carolina North Dakota Nebraska Nevada New Hampshire New Jersey New Mexico New York Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming
Preferred Phone
Alternate Phone	(optional)
Email Address

---

Reconciliation	Are you and your spouse attempting to reconcile? Yes No
Represented	Do you currently have an attorney of your own? Yes No
How Soon	How soon do you expect to hire an attorey? Immediately 1-3 months 4-6 months 7-9 months Not sure I need one
Attorney Fees	How do you plan on financing your divorce case? Borrowing (credit card, personal loan) Personal savings Family support Current income I cannot afford legal fees
Your Income	What is your approximate annual income? Select Income Range Less than $10,000 $10,000 - $20,000 $20,000 - $30,000 $30,000 - $40,000 $40,000 - $50,000 $50,000 - $60,000 $60,000 - $70,000 $70,000 - $80,000 $80,000 - $90,000 $90,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000 - $250,000 More than $250,000
Spouse Income	What is your spouse's approximate annual income? Select Income Range Less than $10,000 $10,000 - $20,000 $20,000 - $30,000 $30,000 - $40,000 $40,000 - $50,000 $50,000 - $60,000 $60,000 - $70,000 $70,000 - $80,000 $80,000 - $90,000 $90,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000 - $250,000 More than $250,000
Property	What property do you and/or your spouse own? (select all that apply) House Vehicle(s) Vacation Property Jewelry Pension Stocks/Bonds IRA Other:
Children	How many children are involved? Include their ages, sex and where they are living.

---

Accept Terms	Have you read and accepted the Terms and Conditions? Yes Read Sponsors Terms and Conditions Read Sponsors Privacy Policy
Year	What is the current year? (Used to block spam)