Cindy Allen & Associates PLLC

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Retirement assets in divorce

When couples in Oklahoma divorce, there are often significant questions regarding issues such as property division, alimony, child custody and child support. One area that is complex and that may easily be overlooked is the way retirement accounts are handled. This is particularly true if the parties are seeking a quick divorce.

Retirement assets can be a tricky aspect of divorce financial planning. Spouses may have multiple plans from different jobs. In addition, not all retirement plans are created equal, and the way money is managed and dispersed through these accounts also varies.

Common considerations include taxation, particularly on the withdrawal of funds from a plan. This is particularly true if a retirement plan, such as a 401(k), is being rolled over when somebody changes jobs. Because a previous spouse may have an interest in that plan, complex taxation issues can arise.

Pensions are also a concern for many people. The spouse who owns the pension should speak to his or her attorney regarding how interest in the pension should be divided between both parties. While some types of divisions are more beneficial than others, this may need to be an aspect of the divorce that is negotiated. A prolonged battle over retirement benefits may end up being more costly than a division that favors one spouse over another.

Individuals who are going through a divorce may benefit from speaking with an experienced family law attorney. A lawyer may be able to review his or her client's financial health, including retirement plans. From there, the attorney may be able to recommend a property division plan that quickly resolves a divorce while securing his or her client's best interest.

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