At The Law Offices of Abbott & Abbott, P.C., we are experienced with the sophisticated tools that often must be employed in divorces that involve complex property division and high net worth divorce matters. One of these tools is the Qualified Domestic Relations Order (QDRO), which is primarily used to divide 401(k) and, in rare cases, IRA and other retirement accounts.
Our goal is always to get you through divorce and the distribution of retirement assets in a way that puts you in the best position possible emotionally and financially. The QDRO is a tax-efficient tool we use to accomplish that goal.
Taxes, Penalties And Your 401(k)
The rules that apply to retirement funds assess fees and income taxes if they are cashed in prior to retirement. The fee depends on your age at the time of withdrawal, but you will definitely be required to pay income taxes on the full amount of withdrawal if you fail to use a QDRO to distribute funds between you and your ex-spouse.
If you have a 401(k) that needs to be divided as marital property, you are right to be worried about taxes and fees. We will help you divide any 401(k) without having taxes and fees assessed. In all cases, your agreement for dividing employment-based financial assets must be approved by the federal government, so working with an experienced lawyer is ideal.
We will also help you tax-efficiently divide pensions, Roth IRAs, stock options and profit sharing plans.
We Aggressively Protect What Is Yours
Your 401(k) may not be subject to equitable distribution in its entirety. If you started the account prior to your marriage, some portion of it may be separate property that is yours to keep. We take great care to protect what is yours, and the use of the QDRO to avoid taxes and penalties is just one of the methods we apply.
Schedule A Consultation With One Of Our Attorneys
Please email us or call us in Marietta at 678-905-8781, Canton at 678-792-4908 or toll free at 678-905-8781 to schedule a free 30-minute consultation with one of our attorneys.