Retirement plans are subject to division through equitable distribution, just as any other marital asset would be. All assets and debts will be divided; bank accounts, time-shares, retirement accounts and even frequent flier miles are subject to distribution. A qualified Peoria AZ family law attorney can help you make sure you get everything you are entitled to.
The first step in dividing a retirement account is to determine how much of the plan is marital property, and thus subject to distribution. Depending on the circumstances, all or a portion of any given retirement plan could be considered separate property. For instance, if the retirement was earned prior to the marriage, it would be considered separate property and therefore not subject to distribution.
After it has been determined that some portion of the plan is marital, the plan will have to be valued. This is easier for some accounts than others. An IRA is easy to value; simply look at the balance on the date of separation. Other accounts, such as non-vested pensions, or a defined benefit plan prove more difficult to value. In more complicated situations valuation may require hiring an expert, like a CPA, to analyze the numbers and come up with a value.
Distribution is the final step – and can also prove tricky when it comes to retirement accounts. Depending on the type of plan you are dividing, there will be certain rules you must follow to avoid taking a tax hit when you divide the account. IRA’s are fairly straightforward, you’ll need to make sure the transaction is structured as a transfer or rollover so that you can avoid the early withdrawal tax. Other plans, may require the use of a Qualified Domestic Relations Order (or QDRO) or other similar vehicle to divide the plan without experiencing a tax penalty.
There are unique rules for each retirement plan, so make sure you know how to divide your retirement plan without triggering a tax event.
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Located in Peoria Arizona, Our Family Law Attorneys and Divorce Lawyers in Peoria AZ have been helping our clients achieve the legal results they are searching for. Our Peoria Law Firm offers Divorce Mediation, Uncontested Divorce, Contested Divorce, Legal Separation, Female Divorce Lawyers, Annulment, Child Support Issues, Child Custody, Military Divorce, Parenting Plans, Prenuptial Agreements, Postnuptial Agreements, Grandparents Rights, Paternity, Order of Protection, Name Change and all Family Law legal issues.
Jensen Family Law in Mesa is located on 3740 E Southern Ave Suite 210, 85206 Mesa, Arizona. From Phoenix Sky Harbor International Airport (PHX), Take S 41st St to E Sky Harbor Blvd, then head west on E Sky Harbor Blvd and Use the left lane to take the exit toward S 41st St. Then Turn right onto S 41st St. After that, Continue straight to stay on S 41st St, then Take AZ-202 Loop E, AZ-101 Loop S and US-60 E to S Val Vista Dr in Mesa. Take exit 184 from US-60 E after that Merge onto E Sky Harbor Blvd, then Use the left 2 lanes to merge onto AZ-202 Loop E toward Tempe/Mesa and Use the right 3 lanes to take exit 9 to merge onto AZ-101 Loop S. After that, Use the right 2 lanes to take exit 55A-B to merge onto US-60 E toward Globe, then Take exit 184 for Val Vista Dr. Then Continue on S Val Vista Dr to your destination and Turn left onto S Val Vista Dr. Turn right onto E Southern Ave, then turn left and Destination will be on the right.
We’re open 9 AM – 5 PM Monday – Friday and we are closed on Saturday and Sunday.
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