Over 50 and Getting a Divorce?
When you file for divorce, you may be surprised that the money you put away through your employer is not entirely yours. Over the course of your marriage, your pension, retirement account and Social Security benefits became marital property. If you are not careful, divorce can affect your retirement. Contact a Fulton County lawyer who knows about dividing retirement savings in divorce: Salata Law, in Alpharetta.
Dividing Retirement Savings
The division of marital assets and of retirement savings is enough to make your head spin. Unless you have an attorney to represent you, you may lose your contributions. In Georgia, if you acquired retirement benefits before marriage, they are separate property. However, if you added to those benefits during the marriage, they are considered marital property and subject to equitable, but not equal, division.
Dividing a Defined Contribution Plan (401(k))
Dividing a 401(k) requires the help of a qualified attorney to obtain a qualified domestic relations order (QDRO). At Salata Law, we understand the tax consequences and tax penalties that come with dividing a 401(k) and can help you with this process.
Dividing a Defined Benefit Plan (Pension)
Defined benefit plans have to some extent been set aside after the introduction of 401(k)s. However, your spouse’s pension may be your largest marital asset. You will need a QDRO to obtain your fair share and protect your financial future.
Nondivisible Retirement Assets (TEARS)
In Georgia, most state and local government retirement plans are divisible by a QDRO. Some retirement funds may also be nondivisible such as the Georgia Teachers Retirement System. You may have to trade off some other assets to keep those funds.