Raleigh Division of Retirement and Pension Plan Lawyers
Divorcing couples deal with enough stress and worry when dividing up their property and agreeing on child custody without having to decide how to split up retirement and pension plans. Often, a couple’s nest egg is the largest asset in a divorce. If the process for the division of 401(k)s or other types of pension plans is not done properly, you may end up paying more in taxes and penalties or losing a good portion of your retirement assets to an ex-spouse.
If you are going through a divorce and expect to be dividing your retirement assets, you need to contact an experienced retirement and pension plan division lawyer. A lawyer can ensure that your retirement funds are properly valued and equitably distributed between you and your ex spouse. The lawyers at the firm of Marshall & Taylor PLLC are here to help you find the right way to split up retirement assets when a marriage comes to an end. To discuss your legal options, contact our office at 919-833-1040 for a consultation.
Do I Need a Division of Retirement and Pension Plan Lawyer?
The state of North Carolina is an equitable distribution state for divorce, but it is important to note that equitable does not always mean 50-50. This means that an ex-spouse may end up with more of your retirement or pension plan if the contribution and needs of both spouses, as well as the value of retirement benefits, are not assessed accurately. An experienced lawyer with 401(k) and pension plan knowledge can help you to keep and protect your retirement interests. A divorce attorney can oversee that your assets are divided fairly and equally when you are facing the dissolution of a marriage.
Why Choose Marshall & Taylor PLLC?
Jeff Marshall and Travis Taylor of Marshall & Taylor PLLC are experienced attorneys who concentrate on all aspects of divorce, including the division of retirement and pension plan assets. Mr. Marshall is a member of the North Carolina Bar Association, the Wake County Bar Association, and the North Carolina State Bar, and is a North Carolina board-certified Family Law Specialist. Mr. Taylor is a member of the NC State Bar, the Wake County Bar, the NC Academy of Trial Lawyers, the 10th Judicial District, and the American Bar Association.
Marshall & Taylor PLLC has many years of experience handling divorces in the community of Raleigh and the surrounding areas of Wake County, North Carolina. Our attorneys have assisted many clients with the division of assets during a divorce, with most of our new clients coming from referrals that result from glowing reviews from our past clients.
Retirement and Pension Plan Division in North Carolina
In North Carolina, divorce law states that any retirement or pension benefits are considered assets in a marriage. These assets are subject to equitable distribution during divorce, meaning distribution that is deemed “fair.” It is possible to avoid getting the court involved if you can come to an agreement with your ex spouse, usually with the assistance of a lawyer.
Retirement assets can vary, but they are generally categorized into two groups:
- Benefit Plans: A defined benefit plan is a promise by an employer to pay a benefit to an employee in the future. This is a calculated formula based on the salary of an employee when they are ready to retire. It is complicated to estimate the value of a benefit plan and may require the professional evaluation of an accountant or actuary to determine its value.
- Contribution Plans: This type of plan is a defined amount of money that belongs to an employee, with the employee and/or the employer making defined contributions. Profit-sharing plans, 401(k)s, and 403(b)s fall into this category.
To determine how a retirement or pension is divided, the state uses a formula that divides the length of time a person was married (up to the date of separation) while they were employed by the total time of employment. One spouse does not usually receive more than half of another spouse’s retirement plan. However, the state of North Carolina can allow an ex-spouse to receive more than 50 percent under certain conditions.
In order to establish an ex-spouse’s right to a portion of the other spouse’s pension, the court will enter a QDRO (qualified domestic relations order). This is important for tax purposes because without it, all the pension income is attributed to the employee-spouse and the ex-spouse is liable for taxes on their share of the plan.
Contact a Division of Retirement and Pension Plan Lawyer Today
Our experienced division of asset lawyers are dedicated to helping clients navigate through their divorce. We assist clients in the Raleigh and Wake County areas by providing legal options for the division of retirement assets. Contact Marshall & Taylor PLLC to discuss your legal options at 919-833-1040 today.