Partner
One of the most important steps that divorcing couples must take is to divide their marital property. While marital property includes many tangible items like real estate, it also includes intangible assets like retirement benefits that are subject to an equitable distribution. Understanding the impact of divorce, and how to protect more of what you have saved for your golden years, is why it’s important to hire experienced legal counsel. LaFountain & Wollman P.C.’s family lawyers take a look at this issue.
How Is Property Divided in Massachusetts Divorces?
Everyone knows that divorce means spouses have to split up their property, but not all states do so in the same manner. Massachusetts is known as an equitable distribution state. This means that a judge will determine which items of property are marital, what their values are, and then distribute them between the spouses in a fair (not necessarily equal)
How Retirement May Be Affected
Retirement, whether in the form of a pension, 401(k), or some other type of benefit, is considered marital property. There are various ways the retirement may be affected, such as:
- Each spouse could keep their own separate retirement accounts, if they both have their own
- If only one spouse has a retirement account, that spouse may be allowed to keep it and distribute another marital asset to the other spouse to offset the retirement
- The retirement account may be divided by way of a qualified domestic relations order (QDRO)
Why It’s Important To Consult An Attorney
An attorney will, first and foremost, understand the equitable distribution process, and the factors that the court will use to divide the marital assets. In reviewing your and your spouse’s unique situations, your attorney can determine which factors are more likely to weigh in your favor to achieve the distribution of retirement and other property that you want. For instance, a longer marriage is more likely to result in the court splitting the account; meanwhile, if both spouses have separate accounts, the judge is more likely to let them keep what they have.
Equitable distribution decisions could be made by a judge or by the parties themselves during mediation. If you have specific equitable distribution goals such as wanting to keep your retirement, it’s a good idea to consider mediation. We can represent you during either process by making the case for your desired distribution and explaining the legal consequences of what is decided in mediation or by the judge.
Lastly, our firm can assist with all paperwork related to the handling of your retirement accounts during divorce. As mentioned above, judges use QDROs to divide retirement accounts. It is critical that you use a properly drafted QDRO for this purpose, rather than take money out of the account on your own and give it to your spouse. Doing the latter could have unintended tax and withdrawal penalties, depending on the type of account it is.
Advocating For You Each Step of Your Divorce
Divorce is complicated, especially when dealing with assets like retirement accounts. We are here to make the process easier and to represent your best interests. Connect with LaFountain & Wollman P.C. by giving us a call today.