Dividing Retirement Benefits in a North Carolina Divorce

As a person undergoes a divorce, they need to consider all of their retirement safety nets as shared marital property. This is the case even if one partner worked while their spouse did not. In most divorces, North Carolina courts consider all of the following assets to be available to both parties in a relationship:

• 401(k)
• Pension plans
• 403(b)
• Work-related retirement programs
• Tax-deferred saving programs

To distribute these funds between two interested parties, attorneys recommend turning to a Qualified Domestic Relations Order, or QDRO. This document helps each divorcee calculate how much they should receive from the aforementioned assets, thereby limiting the arguments that might otherwise exacerbate the divorce proceedings.

While determining whether or not a person has any of the aforementioned networks in place is straightforward, assessing those assets’ values is not. Fortunately, North Carolina courts have a system in place to simplify these calculations. When assessing the value of retirement funds in a divorce, North Carolina divorce lawyers must assess:

• The age of the divorcees
• The age at which the holding divorcee intends to retire
• The life expectancy of both parties
• The impact of the divorce on an asset’s value
• Contingencies and earliest-possible retirement dates

Interested parties must also consider whether or not the division of these assets may result in abrupt taxation come the next tax year.

Finally, divorces often see the two parties remove one another from their wills. Any parties interested in altering their assigned beneficiaries, especially when retirement funds are involved, need to contact either a divorce or trusts lawyer working in North Carolina. The right attorney can not only ease a person through a divorce; these parties can also provide divorcees with the forms and advice needed to secure a happier, financially-sound future.