Property division is often a contentious issue in divorce cases. When you consult your divorce lawyer in Owings Mills , be sure to bring along a complete list of all of your assets, including retirement accounts. Every divorce is different, depending on the exact types of retirement accounts that are involved. For example, if you and your spouse have an IRA, then you should be able to transfer some of the funds into a new account for one of the spouses. If done properly, no taxes should be assessed; change in fund ownership will be treated as an IRA rollover or transfer by the IRA custodian. Your family lawyer will ensure that the transfer is handled correctly to avoid tax assessments and early withdrawal penalties.
Qualified retirement plans are handled differently from IRAs during a divorce. Spouses must use a Qualified Domestic Relations Order (QDRO) to divide the assets in the account between the account owner and the current spouse, ex-spouse, child, or other dependent.