Committed To Obtaining A Fair Division Of 401(k) And Other Retirement Accounts
An Alabama couple acquires interests in their spouse’s retirement benefits on their tenth (10th) wedding anniversary. Divisible retirement benefits include pensions, 401(k) accounts, IRAs and the like. There are specific guidelines that govern how and under what circumstances a retirement account can be divided, and these matters can quickly become quite complex for people who are not familiar with them.
If you are considering a divorce and a 401(k) account or other retirement benefits are a substantial part on your marital estate, having an experienced lawyer can help to ensure that you receive the most advantageous division available. At the Riley Law Firm, I have successfully represented both retirement account holders and their spouses in these matters.
Alabama Law Regarding The Division Of Retirement Accounts
General principles regarding the division of retirement benefits are:
- The parties must have been married for 10 years on the date the Complaint for divorce was filed;
- The Court cannot award more than 50% of the retirement benefits to the recipient spouse;
- Only benefits accrued during the course of the marriage are divisible; and
- The retirement benefits must have vested prior to the filing of the Complaint for divorce.
The process of dividing retirement funds tax free can vary depending on the type of account involved. ERISA-qualified plans are able to be divided with a Qualified Domestic Relations Order (QDRO). Once the court has issued an order to divide a retirement account, the QDRO is used to divide the retirement benefits without either party incurring any tax due to the division.
Contact The Riley Law Firm
No matter what type of retirement account is involved, I will provide the guidance and advice you need. Contact me, attorney Clyde Riley, to schedule an initial consultation. You can reach my Birmingham office by phone at 205-212-5577 or via email to get started.