Pensions, IRAs, and 401(k)s: Protecting Your Retirement Savings During Dissolution
Retirement accounts show years of dedication and smart planning. Money added to a 401(k), IRA, or pension stacks up over time to build a cozy future. When a breakup or divorce happens, facing the idea of losing part of that savings hits hard and feels like a storm on a calm sea. Knowing how to protect what’s yours can make all the difference between worry and peace of mind. Keep reading to find out how to hold onto your hard-earned nest egg and avoid common pitfalls.
At Stange Law Firm, we understand how important these assets are. Our attorneys focus exclusively on domestic law, giving us the experience and insight necessary to handle even the most complex financial matters. We work diligently to protect our clients’ retirement savings and ensure that property division is handled accurately and fairly.
How Retirement Accounts Are Divided
Retirement accounts are considered marital property to the extent that contributions or growth occurred during the marriage. This means that pensions, IRAs, 401(k)s, and other similar accounts may need to be divided between spouses as part of an equitable distribution of assets.
Common types of divided retirement benefits include:
- Employer-sponsored 401(k) and 403(b) plans
- Traditional and Roth IRAs
- Corporate and government pensions
- Military and public service retirement plans
Unlike many other assets, retirement accounts often involve pre-tax funds, making their division more complicated. Tax implications, penalties, and future investment growth all need to be considered carefully to avoid unnecessary losses. Our attorneys pay close attention to every financial detail, working to ensure that each division is handled properly and in compliance with state and federal law.
Using Qualified Domestic Relations Orders (QDROs)
In many cases, a Qualified Domestic Relations Order (QDRO) is required to divide certain types of retirement plans, such as 401(k)s or pensions. A QDRO allows funds to be distributed between spouses without triggering early withdrawal penalties or unnecessary taxes.
At Stange Law Firm, we regularly assist clients with drafting and implementing QDROs. We explain how these orders work, what impact they may have on your long-term savings, and how to use them to protect your financial future. Properly executed, a QDRO ensures that each party receives their fair share while maintaining compliance with IRS and plan administrator rules.
Protecting Your Financial Future
Dividing retirement assets can significantly impact your long-term stability. Our firm works closely with financial advisors, accountants, and valuation professionals to ensure each client’s overall financial picture is carefully considered. We help you evaluate your options, plan for future tax implications, and make informed decisions about how to preserve your wealth.
Contact an Attorney Who Understands the Finances of Dissolution
If you’re ending your marriage and are concerned about your retirement savings, our team is here to help. Contact Stange Law Firm online or by calling 855-805-0595 to schedule a confidential consultation at one of our convenient locations. We’ll help you understand your rights, protect your financial future, and move forward with confidence.
