Retirements And Pension Division Attorneys In Berks County

Your retirement is something that you’ve built from the moment you started your career. Between 401(k)s, IRAs and other investments, you’ve likely developed a considerable retirement portfolio. However, if you go through a divorce, those assets, whether employer supplied or not, almost certainly have to undergo the asset division process.

At Palange & Endres, P.C., we are dedicated family law lawyers who understand the stakes facing our clients: loss of financial stability as you near retirement is a perfectly rational fear. As your retirement and pension division attorneys, we can help you stay in control of your situation and work to find an asset division outcome that makes sense.

Equitable Division And Retirement Assets

Under Pennsylvania asset division law, you do not have to divide all assets in the marriage equally between each side. The state takes a more considered perspective in dividing the assets acquired based on several factors, from the length of the marriage to any health concerns for either party.

The close review of the entire marriage and both partners’ physical, mental and financial situation is vital to finding the proper way to divide complicated retirement assets. Here are a few common scenarios to consider:

• If both sides have retirement assets provided by employers that are relatively equal, there may be no need to divide them.
• If one party in the divorce managed nonemployer-provided nonretirement assets, that larger fund would be somewhat equally divided.
• If one party contributed considerably more to the retirement savings, they may stand to receive a greater share.
• If one party receives a pension, depending on the length of the marriage, distributions from that pension may be divided.

These scenarios are only a few of the many potential factors that will impact your retirement assets in divorce. You don’t have to look at this as a mysterious process. We can help you understand what the factors are for your divorce and how they can impact your assets. All you need to do is call.

Complex Issues Involving Employer-Provided Retirement Accounts

In a long marriage, there is going to be a strong likelihood that you will have to split your employer-provided retirement plan. To do that, as your retirement and pension division attorneys, we will help you through the complicated, frustrating qualified domestic relations order (QDRO) process. QDROs are special court orders that you must get to divide an employer-provided benefit.

Pursuing them is a time-consuming process, and it can come with considerable setbacks. However, we’ll help you understand everything you need to before the process begins so you can make sure you’re prepared.

Common Questions About Retirement And Pension Division In Pennsylvania

If you are facing divorce and wondering what happens to your retirement savings, you are not alone. These questions come up in nearly every case we handle. Here are answers to some of the most common ones.

What types of retirement accounts can be divided?

In Pennsylvania, most retirement accounts accumulated during the marriage are subject to equitable division regardless of whose name is on the account. That includes 401(k)s, 403(b)s, pensions, IRAs and deferred compensation plans. The portion earned before the marriage is generally treated differently from what accumulated during it, though the analysis depends on the specifics of your situation.

Is my spouse entitled to my retirement account?

Your spouse is not automatically entitled to the full account balance, but they may have a legitimate claim to the portion that grew during the marriage. Pennsylvania courts weigh a range of factors before determining how much, if any, of a retirement account changes hands. A retirement division attorney at our firm can review your accounts and help you understand what is actually at stake.

Will I have to pay taxes or penalties for dividing my 401(k)?

Not necessarily. When a 401(k) or similar employer-sponsored plan is divided through a properly drafted QDRO, the transfer itself does not trigger taxes or early withdrawal penalties. The receiving spouse takes on the tax obligation when they eventually withdraw the funds. However, if the division is handled incorrectly or funds are distributed outside of a valid QDRO, taxes and penalties can apply. Getting the paperwork right the first time matters, which is why it is critical to work with an attorney who understands the QDRO process from the start.

Dedication, Consideration, Experience

Our team at Palange & Endres, P.C., has over 60 years of combined experience with family law issues in Berks County. There is no problem you face that we haven’t seen before. We know how to help you. We know how to protect what you deserve. We are here for you. Call us at 610-674-0712 or send us an email using the online form.