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Dividing pension and retirement benefits in a Bellevue high-asset divorce can be a major source of conflict, as these are often some of the largest assets in your household. The nature of these accounts and their holdings can further complicate the division.
Our high-asset divorce lawyers at Twyford Law Office have experience helping clients navigate the end of their marriage with a focus on protecting their rights to property. Learn more below about your rights to retirement assets accumulated in marriage and other issues that can affect their division in a divorce.
Washington is a community property state, which means each spouse has an equal right to the property acquired during the marriage or with the use of marital assets. In a divorce, each spouse has a right to their equal share of community property in a marriage (i.e., 50 percent).
This differs from non-community property states, where a court has greater discretion in determining how to equitably divide marital assets. One Bellevue spouse could be entitled to an equal share of community property, such as the other spouse’s pension, retirement accounts, and other benefits.
Retirement benefits and pensions can come in many different forms depending on a spouse’s employment history. For example, different accounts may apply to the asset division if a spouse works for the state or federal government as opposed to retirement accounts for spouses who work for private companies or are self-employed.
In a Bellevue high-asset divorce, a prerequisite to dividing pension and retirement benefits is providing a disclosure of these assets along with their values. Common examples of retirement accounts that could be subject to division as community property could include the following:
The contributions to these accounts during the marriage will be subject to equitable division as community property. The growth in value of those contributions is also community property.
Determining the amounts within a retirement account that are community property can be difficult in cases where a spouse made contributions before the marriage. Our divorce attorneys work with accountants, financial planners, and other experts to thoroughly review financial disclosures to pursue an equitable division for clients.
Many pensions and retirement benefit accounts have special tax statuses and restrictions that owners must follow. Dividing retirement benefit accounts in a divorce can trigger taxable events and other penalties if not properly transferred under a court’s qualified domestic relations order. For example, 401(k) accounts are tax-deferred, and direct distributions to a spouse could be taxable and result in a 10 percent penalty if the spouse is not yet 59 ½-years old.
In a high-asset divorce, Bellevue spouses will want to take special care in identifying the best method for receiving their share of divided pension and retirement benefits.
With over 40 years of experience in dividing pension and retirement benefits in Bellevue high-asset divorce cases, our lawyers help clients protect their right to valuable property accumulated throughout a marriage. We take a holistic approach to each client’s case, understanding that the outcome of divided pensions and benefit accounts in a divorce is a key part of their retirement.
Contact us today to schedule a consultation with one of our compassionate, capable, and confident divorce attorneys at Twyford Law Office.
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