For many couples, the value of their retirement assets ranks second only to the equity in their home. This becomes an important step in the divorce process, because the marital component of retirement assets must be split on an equitable basis, along with other marital property.
At Law Offices of Burch & Lockhart, in Manchester, we work hard to protect the rights, interests and assets of our divorce clients. Our attorneys understand the complex aspects of retirement asset division and will work to achieve the best possible property settlement for you.
To learn more about divorce and retirement assets, call us at 931-723-7997. We offer free initial consultations.
What Is Your Share Of Retirement Assets?
If these types of retirement accounts contain marital assets (funds acquired during the marriage, excluding inheritance) they are subject to division:
Defined benefit pension plans — Such as the Tennessee Consolidated Retirement System or private employer pension plans.
Defined contribution retirement assets — These can include 401(k) accounts, IRAs and other tax-qualified investment accounts.
Nonqualified retirement accounts — Annuities and taxable mutual funds and brokerage accounts.
In Tennessee, marital property is divided equitably, and not necessarily equally. In your case, our family law attorneys will carefully analyze the source of the funds in your accounts to determine whether they are marital assets (subject to division) or separate assets (not subject to division).
We will also retain a financial specialist to obtain the information needed to create a qualified domestic relations order (QDRO), as part of your divorce settlement. This is the order that authorizes the fiduciary to transfer retirement assets to the other spouse.
Retirement Asset Tax Implications
It is important to note that once retirement assets are transferred through a QDRO, the recipient becomes responsible for tax liabilities on those assets. Taxes on retirement assets that are transferred without a QDRO remain the responsibility of the account holder, not the recipient of those assets.
The lawyers at Law Offices of Burch & Lockhart, will take care to consider all of the financial aspects of your divorce to protect your rights. Our goal will be to help you obtain your fair share of retirement assets.
Contact Us For A Free Consultation
To speak with an attorney about retirement accounts, pensions and divorce, call Law Offices of Burch & Lockhart, at 931-723-7997 or contact us online.