Getting divorced can be a harrowing experience. Social stigmas aside, issues like dividing property might lead to charged confrontations that make the process much harder than it ought to be. Where assets like pensions and retirement funds are concerned, these affairs can become emotionally and mentally trying.
The compassionate attorneys at Burns Law Group, PC, understand the sensitive nature of divorce. We understand that our clients are going through more than enough without having to endure legal wrangling, so we work to represent their rights properly. We’re honored to help families in Canton and the rest of Georgia start off fresh following a divorce.
The Trouble With Retirement Funds And Divorces
When couples get divorced, many interests are at play. Individuals who worked for their 401(k) plans and pensions might want to ensure they keep them, while their spouses often feel entitled to some of the benefits. Although both concerns are equally valid, many couples fail to anticipate challenges like:
- The penalties and taxes incurred when withdrawing funds before retirement to transfer them to an ex-spouse
- The need to draft Qualified Domestic Relations Orders, or QDROs, to legally split certain plans
- The way courts determine what constitutes equitable distributions of delayed benefit property such as pensions and savings accounts
Even if you don’t foresee your split as becoming particularly contentious, these considerations make it critical to obtain sound legal advisement. At Burns Law Group, PC, we focus on drafting agreements and orders that support smart decision-making. By conducting in-depth reviews of separation agreements and acting on behalf of those who can’t come to terms with their soon-to-be exes, our lawyers help Georgians overcome the negative aspects of divorce and face the future with confidence.
Understanding How Divorces Impact Retirement Assets
Winning an award for a portion of a retirement plan or negotiating a favorable QDRO doesn’t mean you automatically obtain benefits. The plan’s original terms may demand that new recipients wait until they or the original pension holder reaches retirement age to receive anything. Some courts try to offset such stipulations by awarding other properties earlier. In other cases, they might order delayed alimony payments upon receipt of benefits.
The nuances of retirement fund division can catch people unprepared if they’re not familiar with how things work. Our lawyers are committed to keeping you informed so that you can plan ahead. We don’t believe that separating from your spouse should jeopardize your retirement. Call us today at 770-956-1400 or contact us online to find out how your divorce might affect your pension or savings.