What Happens to Our Retirement Accounts During a Washington State Divorce?

A: Next to your home, your retirement accounts may likely be the second largest and second most complicated asset to divide during your Washington State divorce. No matter what combinations of 401(k)s, IRAs, and other retirement plans you have, it can be difficult to find a fair and easy way to distribute the money between you and your ex. Luckily, although there are heavy penalties for those who access their retirement funds early, there are specific laws that allow divorcing couples some leeway when dividing these accounts.

Most retirement plans are distributed using a qualified domestic relations order (QDRO). This action creates an alternate payee to the retirement account and gives that payee several options for either investing or cashing out their portion of the funds they receive. While one person in need of extra cash may choose to take a lump sum of their funds or cash out completely, another person may choose to keep their funds in the original 401(k) or roll the funds over into their own IRA.

It is vital that you receive your fair share of funds when dividing the shared retirement plans of you and your spouse. A Seattle family law attorney can help ensure that your accounts are divided fairly and that your plans for retirement are not dashed by divorce.