Dividing Your Retirement Accounts May Be More Complicated Than You Think

Because retirement accounts are tax-deferred assets, giving a larger chunk to one or the other member of a couple may not be to his or her advantage in the long run. At some point, taxes will have to be paid on that asset, and if one of you takes more money upfront and the other takes retirement accounts, the person who is letting his or her asset grow will end up with the worse deal.

It is important to divide any kind of security equally and in kind. The cost basis of pre-tax or after-tax securities requires an equal in-kind division of these assets. Division of retirement accounts must factor deferred income tax and therefore should be divided equally, or if not, consideration should be given to an "after-tax" calculation.

Our practice centers around alternative dispute resolution methods such as collaborative divorce, cooperative divorce and divorce mediation to help couples come to an agreement on how to separate their lives without going through the adversarial process of court proceedings. Using these methods frequently helps each person to move forward with his or her life more quickly and allows for better communication between them with regard to children and continuing family bonds.

Call us at 239-215-4952 or send us an email to learn more about our problem-solving divorce methods.

Attorneys for Pension and 401(k) Division

We will sit down with you, your spouse, your spouse's lawyer, and when necessary, a neutral certified public accountant (CPA) or financial planner to determine what your retirement assets are worth and how best to divide them. If this includes using a qualified domestic relations order (QDRO) to divide them equally, it will be arranged. Working with a CPA can also assist in tracing the accumulated marital value of a retirement account that one person owned prior to the marriage.

Going through a divorce in Florida is never easy or simple. Once you have tied your lives together, it can be very difficult to extricate yourself from the other person entirely, especially when children are involved. Making the effort to cooperate with your spouse on the divorce will leave you both with a more firm sense of closure and feeling better about yourselves as people for taking the high road.

Contact us at 239-215-4952 to schedule an initial consultation. Our law office is in Fort Myers and we represent clients throughout southwest Florida, including Cape Coral.