The State of Iowa requires each party in a divorce proceeding to disclose all of their assets and debts. Retirement accounts can be one of the largest, and most valuable, asset that a person owns. They may also be one of the more challenging assets to divide.
If you or your spouse has a retirement plan, it may be subject to division in a divorce proceeding. There are very specific guidelines when determining division of retirement accounts such as a 401(k), 403(b), pension plan, or another similar plans.
When determining the division of a retirement account, there are many factors to consider including understanding the tax implications of splitting a particular asset. Most plans require a Qualified Domestic Relations Order (QDRO) to be filed with the plan administrator before any portion of the retirement plan can be distributed to an ex-spouse. It is critical that your settlement agreement states exactly how the asset is being divided and how the funds will be transferred. Seeking the advice of an attorney who understands these factors and implications surrounding retirement accounts in a divorce proceeding is imperative.
If you are concerned about how the court will divide your retirement accounts during your divorce, call Simpson Legal Group, LLC at (712) 256-9899, where experienced attorneys can explain the intricacies of the property distribution process.