Pennsylvania Pensions, IRAs And 401(k)s Issues In Divorce
Your financial future after divorce is paramount. In Pennsylvania, your marital property is subject to an equitable distribution. This includes the possibility of having to divide your retirement accounts equitably. On one hand, as the lesser-earning spouse, this may give you a feeling of relief. On the other hand, you may have deep resentment to part with any amount of your hard-earned funds built up in your retirement accounts.
When you have any type of retirement plan, it is vital to speak with an experienced lawyer to safeguard what is yours. At Beroes Law Center, we understand how divorce can make you feel vulnerable because of all of the uncertainty you face. We are here to help you build a bridge into your next chapter and protect your financial assets.
Conduct A Current Financial Inventory As Soon As Possible
Whether you are thinking about getting divorced, or have just been served, stop, and inventory your financial picture right away. Division of assets, especially when retirement plans and benefits are subject to the marital property pool, is frequently where divorces stall.
In addition to gathering your bank and credit card statements, personal and business loans, mortgage documents, life insurance policies, court orders from a former marriage and prenuptial or post-marital agreements, make a list specific to these types of accounts, including:
- Traditional and Roth individual retirement accounts (IRA)
- Rollover accounts
- Other retirement income
Typically, funds added to the above accounts can be subject to your property division. Some accounts may require a qualified domestic relations order (QDRO) to process the distribution of funds and thus avoid the usual high penalties for accessing a lump sum payment. If both you and your spouse have accounts that are about equal, the court may not look at the complex parsing of your retirement accounts.
Assertive Representation To Securely Approach Your Future
Your age and length of marriage are among two significant factors when the family court assesses the overall equitable distribution of your marital assets. You may have heard or read that you may be able to cash out your 401(k) or IRA with minimal tax consequences if the court awards part of your account to your spouse. With the fluctuation of stock market valuations, is this really the right course of action for your circumstances? Is there another way to achieve an equitable division of your marital assets?
Our attorneys at Beroes Law Center have experience with the many steps of equitable division of retirement accounts and savings in divorce. We will work alongside you and your accountant or financial planner to develop a strategy tailored to your individual and family’s circumstances.
Speak With An Assertive Lawyer Today
When you have questions about how your retirement accounts will be split in your divorce, it is best to seek legal advice sooner rather than later, even if you and your spouse are trying to have an amicable divorce. Our attorneys at Beroes Law Center commit to assertively championing your peace of mind regarding your future finances. Call our office in Pittsburgh at 412-621-6811 or reach out to us online to schedule a free consultation.