When a couple gets divorced, they are oftentimes faced with a wide array of challenges. Often, the most difficult is agreeing on the terms of their divorce, especially when it comes to the critical step of property distribution. Though alimony and other key assets, such as a couple’s house, are often the most fought over, 401(k)s are also frequently the cause of contested divorce as well. If you are getting divorced, you need an experienced Los Angeles divorce attorney who has significant experience dealing with 401(k)s and divorce. Please continue reading and reach out to our firm to learn more about 401(k)s and divorce in California and how our firm can help you, every step of the way.
How are 401(k)s divided in a divorce?
If you are married to someone who has a workplace retirement plan, such as a 401(k), you are most likely entitled to a portion of those benefits, should you ever get divorced. However, this does not automatically happen. You will first have to establish a qualified domestic relations order (QDRO). A QDRO is not a part of your divorce decree, but it is based on the decree. In most cases, your attorney will speak with the plan’s administrator and work to ensure that he or she approves of the transfer of assets from the 401(k) to you. Often, 401(k) funds are transferred to rollover IRAs, in which case you must ensure your QDRO reflects as much. You should note that this is not a taxable event. However, if you wish to receive the money directly, you will have to pay income taxes on it and ensure that your QDRO reflects this as well.
If you have any further questions about 401(k)s and divorce in California, please do not hesitate to speak with our competent and compassionate legal team. We have assisted countless clients through each phase of the divorce process in the past, and we are prepared to do the same for you as well. All you need to do is pick up the phone and give us a call.
Contact our experienced Los Angeles firm
Divorce and family law issues are notoriously complicated and personal, which is why you must hire an attorney with years of experience, as well as the compassion and skill needed to handle these sensitive matters. For the qualified, dedicated legal representation you and your family deserve and need, contact Zitser Family Law Group, APC today.
