Llano Retirement Asset Division Attorney

Lawyer for Division of Retirement Accounts and Pensions During Divorce Cases in Llano County and Mills County

When a couple gets a divorce, they will be required to divide multiple types of property and assets. While the division of certain assets may be a straightforward process, others can present difficulties. Retirement assets may require some complex considerations, but it is important to make sure they are addressed properly, since they can affect a person's ability to provide for their needs throughout their lifetime. By working with a divorce lawyer, spouses can gain a full understanding of their rights regarding these assets, and they can create a divorce settlement that will meet their financial needs.

The Law Office of Russ Alan Baker, PLLC provides legal help to ensure that divorcing spouses address financial issues correctly. Attorney Baker has more than 16 years of legal experience, and he has handled a wide variety of complex divorce-related matters on behalf of his clients. He understands the importance of securing an outcome that will protect a person's financial interests, and he believes in providing strong advocacy to ensure that his clients will have the resources they need in the future.

Division of 401K and IRA Accounts and Pensions

Throughout their career, a person may save money in an employer-sponsored retirement account such as a 401(k) or an individual retirement account (IRA). These accounts will usually be part of the marital estate if funds were contributed to them during a couple's marriage. This means that the funds in an account may need to be divided between spouses during divorce. However, withdrawing or transferring funds from these accounts can result in penalties if the account holder has not yet reached the appropriate retirement age, and taxes may also apply to the amounts that are withdrawn.

To avoid penalties and taxes, a transfer from a retirement account may be done using a qualified domestic relations order (QDRO). This is a court order that will instruct the administrator of a retirement plan to allocate a certain amount of funds to a person other than the account holder. A QDRO will ensure that penalties will not apply when withdrawing funds from a 401(k), and a "transfer incident to divorce" will allow funds to be withdrawn from an IRA without incurring penalties. When funds are transferred to the account holder's ex-spouse, they will be able to avoid paying taxes by rolling the funds over to their own individual 401(k) or IRA.

Pensions are other retirement assets that may need to be addressed during the divorce process, but determining how to divide pension benefits can sometimes be difficult. Typically, the ex-spouse of a person who receives pension benefits will be entitled to receive a certain percentage of pension payments, and this percentage will be based on the number of years the couple was married while a spouse was earning pension benefits, as well as the total number of years the person worked in a pension-eligible position before retiring. A QDRO should also be used in these cases, and it will specify the percentage of benefits that will be paid to the plan holder's ex-spouse. Once the person retires and begins receiving benefits, the terms of the QDRO will be followed when making payments to both parties.

Contact Our Lampasas County Property Division Attorney

Even though retirement savings and benefits may not be a person's primary concern during their divorce, addressing these assets properly will ensure that they will have the financial resources they need later in life. The Law Office of Russ Alan Baker, PLLC can make sure spouses address these issues properly while working to help resolve any other issues that may arise related to the division of a couple's marital property. To arrange a complimentary consultation and get legal help with divorce-related issues, contact our office at 325-216-2006. We represent divorcing spouses in cases throughout Central Texas, including Burnet County, Burnet, Fredericksburg, Blanco, San Saba, Johnson City, Mason County, Mills County, Blanco County, Marble Falls, Gillespie County, Llano County, Llano, Bertram, Brown County, Lampasas County, and San Saba County.