Dividing A 401(k) In Divorce
Things You Should Know About Divorce and Asset Division
A 401(k) plan is one of the most common assets that may be eligible for division in divorce. Many people have them, but few understand the legal process by which they may be divided fairly.
As in any part of the equitable division of assets agreement in divorce, dividing a 401(k) account between spouses should be conducted the right way. Unlike private savings and some other forms of investments and retirement benefits, the division of a 401(k) is governed by federal law and the rules and regulations of the corporation that employs the account holder.
At the Sweeney Law Firm, our divorce and asset division attorneys have extensive experience in the appropriate handling of 401(k) accounts on behalf of clients in the Pittsburgh area and throughout western Pennsylvania. Contact us today to learn more about your rights and options in a confidential consultation with a lawyer at our firm.
The Qualified Domestic Relations Order
The qualified domestic relations order (QDRO) is a form that must be completed and filed appropriately in order to divide assets held in a 401(k) between divorcing parties. The form and the process are somewhat complicated. This is not a situation in which it is appropriate for most people to try to help themselves. Even experienced accountants may benefit from the guidance of a knowledgeable attorney in these matters.
Asset protection is a major concern for many of our clients. They understand that dividing many kinds of assets can result in tax consequences. What most people don’t know is that dividing a 401(k) will not result in additional tax liability or penalties. Done the right way, dividing a 401(k) does not have to be a long or expensive process.
Contact Us Today
To discuss how an experienced attorney at the Sweeney Law Offices can help you in the efficient and cost-effective division of a 401(k) in any western Pennsylvania divorce, contact us today. Our main office is located 20 minutes north of downtown Pittsburgh in Cranberry Township, Pennsylvania. We offer free parking for your convenience. Major credit cards are accepted.