Dividing a Retirement Account in a Divorce Proceeding
A family lawyer Little Rock, AR residents trust knows that the divorce process can be an overwhelming and emotional one. At the Harrelson Law Firm, we have provided countless clients with assistance in divorce cases. We know that even the friendliest of divorces can quickly turn into one contentious battle as spouses divide assets and property. The family home, real estate, checking and saving accounts, vehicles, and other marital estate assets are all items that may need to be divided in a divorce. It is not uncommon for couples to completely disagree on how to divide their joint assets.
If you are considering ending your marriage, a family lawyer in Little Rock, AR may discuss your legal options with you. When it comes to property and asset division, or simply filling out paperwork, our counsel could prove to be an invaluable asset. As just one example, if you aren’t sure how your retirement plan may best be divided, contact a family lawyer Little Rock, AR clients depend on for more specific information. In the meantime, here’s a quick look at what retirement account division may look like:
Retirement Account Division
Besides any real estate they may own, a couple may also have to split any retirement accounts they have. Arkansas, like several other states, is an equitable division state. This means the court will divide the couple’s assets in a way that it deems fair for each of them. Even if only one spouse has a retirement account through their employer, the other spouse may still be entitled to half of that account — or whatever percentage is worked out through divorce negotiations and/or decreed by the court.
Retirement accounts that fall under this rule include IRAs, 401(k)s, pensions, and other deferred compensation plans. There are two different ways retirement plans can be divided, either by Qualified Domestic Relations Order (QDRO) or in-kind division.
Since most retirement plans have stiff penalties for early withdrawal, a QDRO ensures that the division of the account agreed upon in the final divorce settlement will take place but without either party having to pay heavy penalties or taxes. The QDRO serves as the notification to the retirement plan administrator how funds of the account will eventually be dispersed.
An in-kind division occurs when one spouse gets to keep the entire retirement account and the other spouse receives another asset or assets which are of equal financial value as the retirement account.
A Little Rock family lawyer may advise their clients on which of these division methods will benefit them the most.
The Benefits of a Family Lawyer Little Rock, AR
Apart from filing a divorce, a family lawyer can act as a legal advisor for other important issues as paternity, guardianship, adoption, or child custody. By opting to retain a family lawyer Little Rock, AR has to offer, you can feel confident in knowing the paperwork is correctly filed and in a timely manner. A lawyer will also:
- Understand the Complexities of Family Law
A family lawyer in Little Rock, AR has the necessary training to navigate the complex family court system. This not only includes the filing process or laws, but also any relevant regulations or loopholes. Should your case be considered extraordinary, a family lawyer may be able to address the issues in the most professional manner possible – and without hindering your defense.
- Provide You With Unbiased Support
Whether you are going through a divorce, seeking paternity of a child, or trying to divide your property, there is a good chance you’re feeling heightened levels of stress. This could lead to confusion and vulnerability as well as challenges in making smart choices. A Little Rock family lawyer may try to ease your stress load by taking on the entirety of your case; thereby, enabling you to focus on the important things in life such as happiness and your children.
- Be Familiar with Other Relevant Legal Matters
Often, family law cases intersect with other legal matters such as tax and asset valuation, federal and appellate law, or business law. A family lawyer Little Rock, AR depends on may also be well versed in these sectors or have associated who understand them. Harrelson Law Firm has a roster of connections who can be called upon whenever needed. From other lawyers and accountants to private investigators we will make sure to take advantage of our network of resources.
Services Provided by Harrelson Law Firm
Harrelson Law Firm is determined to get positive results for every one of our clients. Regardless of your situation, we encourage you to contact us for a free consultation. One of our family lawyers will be pleased to meet with you. During this time we’ll discuss your legal matter and let you know what your options may be. Some of our family law services include:
- Child support and child custody
- Divorce/ Separation
- Fathers’ rights
- Grandparents’ rights
- Gay and LGBT family law
- Property division
- Alimony and spousal support
- Fiduciary duties
- Property and debt distribution
- Spousal maintenance or alimony
- Modification and enforcement of court orders
- Prenuptial agreement
- + more
Let a Family Lawyer Little Rock, AR Clients Trust Advocate for You
It is important to note that when it comes to dividing a marital estate, there are many factors to consider — not just the current financial value of assets. There are other assets besides retirement accounts that may also involve taxes and/or penalties that greatly affect the overall value of that asset. This is where a seasoned family lawyer Little Rock, AR residents rely on may help negotiate the best divorce settlement for you.