Practical Solutions For The Division Of Retirement Benefits
The money inside of a 401(k) or a pension often contains the majority of a couple’s financial assets. Determining the best option for dividing retirement benefits between both spouses is one of the most important questions that must be answered during divorce.
The lawyers at Kroener Hale Law Firm understand how a divorce can undermine the hard work you have done to save for retirement. Our team will work diligently to protect your best interests and help you move beyond a divorce.
Qualified Domestic Relations Orders Guide Retirement Benefit Division
The amount of money earned in an employer-sponsored retirement account during a marriage is typically marital property. Courts in Ohio divide these assets during divorce proceedings by using a qualified domestic relations order (QDRO).
The QDRO outlines how both parties will divide the assets inside of the plan. Our attorneys work alongside financial professionals to determine the percentage of benefits our clients are entitled to receive. We work to secure a QDRO that will leave you in a strong financial position after the divorce is resolved.
Don’t Ignore Taxes And Fees
When spouses divide assets in a 401(k) during divorce proceedings, there is the risk of incurring taxes and early distribution penalties. These taxes and fines paid on a 401(k) distribution ultimately reduce the value of the asset, leading to a distribution of assets that is not fair.
One option that can limit the negative financial consequences of divorce involves swapping assets. A spouse may receive interest in a house while the other spouse is able to keep retirement benefits. We take a thoughtful approach to resolving the division of retirement assets that will help mitigate the negative financial consequences of a divorce.
Learn How Our Team Can Help
Dividing complex assets, including those savings in a retirement plan, is not always obvious. Call our skilled attorneys in Batavia at 513-716-5940 if you are thinking about filing for divorce. You may also send our team a question on our website.