What Will Happen to Your Retirement Accounts After Divorce?
During divorce in Arkansas, all marital assets and debts are equitably divided. This includes any retirement accounts that you or your spouse started during your marriage. It also includes any increase in value of those accounts during the course of your marriage.
In order to ensure a fair and equitable division of your retirement accounts, you need an experienced attorney by your side. At Robertson, Oswalt & Associates, we have an in-depth understanding of the marital property division laws in Arkansas. From our offices in North Little Rock, Conway, Benton, and Heber Springs, we can provide you with advice and help you understand the property division process as it applies to your case.
How Are Retirement Accounts Divided?
The method in which your accounts will be divided will depend on the type of account and the facts in your case. Some investment accounts, such as bank accounts, stocks and bonds, can be split at the time of your divorce. However, with many retirement accounts — such as IRAs, 401(k)s and pensions — dividing today could have a significant tax penalty. Luckily, there is a process to avoid these penalties and divide the retirement accounts at the time when you need them most: in the future.
To accomplish this, your lawyer can request a qualified domestic relations order (QDRO) as part of your divorce. This order from the court will instruct the administrator of your retirement account to provide payment to an alternate payee. That way, when you and your ex-spouse reach retirement, both of you can receive an equitable share of the account based on what is set out during your divorce.
Speak With A Skilled Lawyer About Your Case
At our firm, we are dedicated to protecting our clients’ assets and ensuring they receive a fair division of property during divorce. To discuss the division of retirement accounts, other assets or debts with an attorney at our firm, call us at 501-588-4451 or 866-311-3815. You can also contact us by filling out our online form.