September 20, 2012 (Press-News.org) How to Divide Retirement Benefits After Divorce
Retirement benefits are a large portion of many Americans' assets. For many, a 401(k) or IRA is the single largest asset to their name. This is especially true for workers who have had time to accumulate a large portfolio. However, even younger workers likely have thousands of dollars in a retirement account.
Complicating retirement benefits for many baby boomers is divorce. Older couples are increasingly divorcing; approximately one in four divorcing couples are over age 50. Unfortunately, dividing retirement benefits and pension plans in divorce can be very complex.
Retirement benefits that accumulate during the marriage are considered marital property. Marital property is property that belongs to both spouses in a marriage. For tax-deferred retirement accounts like 401(k) accounts, however, division is not so simple. Unlike checking accounts or the proceeds from the sale of a house, dividing the account in half would result in severe tax consequences.
A Qualified Domestic Relations Order
A qualified domestic relations order, more commonly known as a QDRO, is the appropriate vehicle to divide a 401(k) plan. A QDRO is not necessary for an IRA or pension plan, however. A QDRO is an order for a retirement plan that distributes a portion of the retirement plan to a spouse, former spouse or child. If the division is to a former spouse, he or she can "roll over" the payments into his or her own retirement plan, thus preserving the tax deferral benefits of the 401(k).
A QDRO should be completed before the divorce is finalized. Otherwise, financial and legal complications may crop up and leave an ex-spouse with little recourse. For example, the divorce decree may call for the immediate distribution of a part of a pension plan in order for one former spouse to make immediate, necessary payments. Some pension plans will not allow an immediate distribution, though, instead requiring monthly payments at retirement age. Understanding this before the divorce is final will allow the ex to obtain the necessary cash through other methods.
An Attorney Can Help
It can be easy to overlook retirement benefits and pension plans when dividing assets in divorce. Most people who are divorcing think first to the marital home, their possessions and checking and savings accounts when considering finances. However, retirement benefits can be the largest asset for a married couple, and dividing a retirement account appropriately can mean the difference between financial uncertainty and a comfortable living post-divorce.
Anyone considering divorce should contact a skilled divorce lawyer to discuss appropriate first steps.
Article provided by Mark Abzug, P.A.
Visit us at http://www.coralspringslaw.com
How to Divide Retirement Benefits After Divorce
Approximately one in four divorcing couples are over age 50 and dividing retirement benefits and pension plans in divorce can be very complex.
2012-09-20
ELSE PRESS RELEASES FROM THIS DATE:
Chapter 7 Bankruptcy: An Overview
2012-09-20
Chapter 7 Bankruptcy: An Overview
Chapter 7 of the U.S. Bankruptcy code allows debtors to petition a bankruptcy court to discharge, or cancel, much of their debts. This form of bankruptcy is available to individuals as well as certain types of business entities, including partnerships and corporations.
In order to qualify for Chapter 7, individuals must meet a "means test." Those wishing to file Chapter 7 must issue a statement of their income for the previous six months immediately before filing the bankruptcy petition. In addition, individuals must provide ...
Unique Minneapolis Court Aims to Help Unmarried Parents
2012-09-20
Unique Minneapolis Court Aims to Help Unmarried Parents
About one-third of all newborns in Hennepin County are born to unmarried parents. That means the parents of approximately 5,000 newborns each year must figure out paternity and custody matters without the formal protection that marriage affords to parents.
Family courts can be difficult to navigate for unmarried parents. If parents are divorcing, the court is well equipped to handle custody matters. Married men are assumed to be the fathers of their wives' newborns, and are automatically given the rights and ...
Settling Oregon Child Custody and Parenting Plan Disputes Swiftly
2012-09-20
Settling Oregon Child Custody and Parenting Plan Disputes Swiftly
Often, one of the most difficult things about divorce is determining which parent will get custody of the children and the parenting time schedule for the non-custodial parent. Some divorces devolve into bitter disputes, using child custody as a means for parents to extract revenge on one another. However, many parents realize the damage that feuding parents can have on children and see the value in resolving child custody matters quickly. Oregon parents can take the following steps to minimize conflict ...
Feds Crack Down on Medical Marijuana in California
2012-09-20
Feds Crack Down on Medical Marijuana in California
As part of the federal government's ongoing crackdown against California's medical marijuana industry, several people associated with a chain of medical marijuana shops in southern California were arrested recently and indicted on federal drug charges.
On June 14, 2012, federal authorities arrested six individuals linked to G3 Holistic Inc., a medical marijuana operation that has three dispensaries in the Inland Empire region of California, east of Los Angeles.
All six of the men arrested in the G3 raid are facing ...
Supreme Court to Hear Stock Fraud Lawsuit
2012-09-20
Supreme Court to Hear Stock Fraud Lawsuit
On June 11, 2012, the United States Supreme Court announced that it would review a class-action securities fraud lawsuit against Amgen, the largest biotechnology company in the world. The Court will determine at what point plaintiffs in class-action stock fraud lawsuits must prove that the alleged fraud had an impact on share prices.
Withholding Information
The Connecticut Retirement Plans and Trust Funds, a state pension fund, is leading the class of investors claiming that Amgen committed fraud by failing to disclose ...
What Is a Buy-Sell Agreement?
2012-09-20
What Is a Buy-Sell Agreement?
People who have an ownership interest in a closely-held business often worry about what will happen to the business should the current ownership group shift somehow. What if something happened to one of the owners? What if someone wants out of the business? Business owners can secure peace of mind and ensure continuity of business operations by drafting buy-sell agreements that govern economic transactions among business shareholders in the event of triggering circumstances. Business owners should understand the purpose of buy-sell agreements, ...
How to Prevent Common Types of Bicycle Accidents
2012-09-20
How to Prevent Common Types of Bicycle Accidents
The Twin Cities are known for having a high number of bicyclists. That is why knowing what the most common types of bicycle accidents are and how to prevent them is extremely important.
According to the organization Bike Safe, many bicycle accidents happen when a motorist fails to stop at a traffic signal and hits a bicyclist riding through the intersection. Though we may visualize the motorist failing to see the bicyclist as the motorist completes a turn, this type of accident usually occurs when the driver and bicyclist ...
Women More Likely to Lose Health Insurance After Divorce
2012-09-20
Women More Likely to Lose Health Insurance After Divorce
Recent research shows that women face a higher risk than men of losing their health insurance coverage after divorce. Based on an analysis of 11 years' worth of Census data, researchers at the University of Michigan found that roughly 16 percent of women end up without health insurance during the first six months after divorce, and that they continue without it for at least two years.
Women who were previously insured under their husbands' health insurance plans were most at risk of becoming uninsured, losing ...
Texas Supreme Court Child-Safety Case Could Affect Custody Disputes
2012-09-20
Texas Supreme Court Child-Safety Case Could Affect Custody Disputes
A court battle stemming from a child custody dispute in Houston is on its way to the Texas Supreme Court after an appeal by the child's mother. At issue in the case is whether two Houston judges acted improperly by allowing the child's father to change his mind after agreeing to a child custody arrangement in binding mediation. The judges granted the man's request to reject the mediated agreement after he expressed concerns that his 7-year-old daughter may be harmed by her mother's husband, a registered ...
False Claims Act: Filing a Whistleblower Claim Can Be a Tough Act
2012-09-20
False Claims Act: Filing a Whistleblower Claim Can Be a Tough Act
Noticing that a company is involved in defrauding the government is one thing. It's another thing to move forward with that information. The decision to file a whistleblower lawsuit is a difficult one. Individuals who file whistleblower claims often face retaliation by their employers, risking damage to reputation, demotion, and job loss, among other adverse employment actions. Federal laws like the False Claims Act and state laws protect whistleblowers, but employees who suspect their employers of wrongdoing ...
LAST 30 PRESS RELEASES:
Robotic space rovers keep getting stuck. UW engineers have figured out why
New research shows how immigration status can become a death sentence during public health crisis
University of Toronto Engineering researchers develop safer alternative non-stick coating
Good vibrations: Scientists use imaging technology to visualize heat
More ecological diversity means better nutritional resources in Fiji’s agroforests
New global study shows freshwater is disappearing at alarming rates
Scientists create an artificial cell capable of navigating its environment using chemistry alone
A little salt is good for battery health
Deep-sea fish confirmed as a significant source of ocean carbonate
How to keep kids with eating disorders home after hospital stay? Therapy
Sex differences affect efficacy of opioid overdose treatment
Aligning AI with Human Values and Well-Being
Engineering the next generation of experimental physics
The scuba diving industry is funding marine ecosystem conservation and employing locals
BATMAN brings TCR therapy out of the shadows
Surrogates more likely to be diagnosed with mental illness, study finds
Columbia Engineering researchers turn dairy byproduct into tissue repair gel
Global estimates of lives and life-years saved by COVID-19 vaccination during 2020-2024
Potential trade-offs of proposed cuts to the NIH
New research simulates cancer cell behavior
COVID, over 2.5 million deaths prevented worldwide thanks to vaccines. One life saved for every 5,400 doses administered
Scuba diving generates up to $20 billion annually
Scientists advance efforts to create ‘virtual cell lab’ as testing ground for future research with live cells
How DNA packaging controls the “genome’s guardian”
Simplified models, deeper insights: Coarse-grained models unlock new potential for ionic liquid simulations
Gorillas’ personal circumstances shape their aggression towards groupmates
Which signalling pathways in the cell lead to possible therapies for Parkinson's disease
Identifying landslide threats using hydrological predictors
First graders who use more educational media spend more time reading
Exploring the meaning in life through phenomenology and philosophy
[Press-News.org] How to Divide Retirement Benefits After DivorceApproximately one in four divorcing couples are over age 50 and dividing retirement benefits and pension plans in divorce can be very complex.