Today, retirement accounts are often the largest asset divided in a divorce. 401ks, IRAs, and pensions often exceed the value of the family home. That’s why it’s critical to protect yourself with proper legal guidance during the division of assets in a divorce. Otherwise, you could end up paying taxes and penalty fees when your former spouse takes his/her share of the retirement out early. Contact the Denton Law Firm today for assistance with your Tulsa Divorce and QDRO. (918) 221-3999.
“QDRO” (pronounced quadro) stands for a qualified domestic relations order. During a divorce, it allows you to assign a percentage of your retirement account to your former spouse or vice versa. It is available for 3 reasons: dividing assets in a divorce, paying alimony, or for child support.
The QDRO is an essential component of most divorces in Tulsa because Oklahoma is an equitable distribution state. Equitable distribution means that each person will receive a percentage of the marital property based on contribution, future earnings, and other components the judge may use to create a fair division. However, fair does not necessarily mean 50:50. It is up to a Tulsa judge to define what “fair” means in your divorce. That’s why you need an experience trial attorney to assist you in persuading the judge treat you fairly during your Tulsa Divorce.
If you receive money via a QDRO, you can typically roll it into an IRA. If you receive retirement money and decide to withdraw it, the taxes and penalty fees are your responsibility. The exception to the rule is child support. If a parent must pay child support from a retirement account, the parent must still pay taxes. However, the language in the order must also set aside money to cover those taxes.
There is a lot to consider when splitting assets during a divorce. Correctly splitting the retirement accounts is one of the most important financial decisions in a Tulsa divorce. It will have long term consequences for both sides. It can change how long you have to work before you can retire.
Picking the right lawyer to represent you is essential. The Denton Law Firm is prepared to assist you with your QDROs and other aspects of your Tulsa Divorce. Let us help you sift through the financial details and protect you from tax or fee trouble in the future. Divorce is hard enough. Let us deal with the red tape so you can get on with your life. Call today for your free consultation relating to your QDRO and your Tulsa Divorce: (918) 221-3999.
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