Division of Retirement Accounts in Divorce

Divorce Lawyer serving Escondido, Oceanside & Surrounding Areas

If you are going through a divorce and you have retirement plans, it is almost certain that the court will order them to be divided as part of your divorce settlement.  These plans include your 401(k), IRA, pension plan and profit sharing.  In California, your Judgment for Dissolution of Marriage decree states how both spouses retirement accounts will be divided, but unless you then move forward to have your attorney create what is known as a Qualified Domestic Relations Order (QDRO), the actual division of these accounts will not occur.  These orders are can be highly complex and require the knowledge of an attorney  who has a good understanding of ERISA  (Employee Retirement Income Security Act) law  as the order must be in compliance with this law.  He must also be knowledgeable about the requisites of the specific retirement plans.  If the QDRO is not written and presented to the court, very serious consequences may result.  The spouse who was not the employee may:

• Lose survivor benefits
• Lose total interest in the plan
• Be  forced to pay huge taxes on his or her share of the plan

To protect your assets, you need to hire a qualified attorney to prepare the QDRO on your behalf.  The QDRO will legally provide that the non-employee ex-spouse receives either an established amount of payments, or a specific percentage of the total amount in the employee spouse's retirement plan accounts.  It also allows that former spouse to withdraw the agreed upon portion of the employee's retirement plan and roll it over into an IRA, which is a tax free individual retirement account, so there will not be any tax liability.

Northeast San Diego County Divorce Lawyer

As an Escondido divorce attorney, I, Gordon Meyer, Attorney at Law, have advised many spouses on the division of their retirement accounts, and have written QDROs to protect their assets and future interests.  I understand that being financially secure is an important factor in being able to move ahead with your life after divorce.

Contact an Escondido Division of Retirement Accounts Lawyer today to discuss the division of your retirement accounts.