The division of pension and retirement benefits can be complex when high-net-worth spouses divorce, requiring consideration of both federal and state law. The process ultimately requires a Qualified Domestic Relations Order (QDRO) to ensure compliance with the Employee Retirement Income Security Act (ERISA) and Internal Revenue Service (IRS) regulations.
Our seasoned high-asset divorce attorneys have in-depth knowledge and substantial experience in dividing pension and retirement benefits in The Colony high-asset divorces. At Towson Law Firm, PLLC, our team focuses on achieving an optimum allocation of benefits that is fully compliant with federal and state tax and retirement laws.
When dividing pension and retirement benefits during a divorce, high-asset couples in The Colony should first conduct an inventory of the contributions each spouse made into their accounts during the marriage. However, high-net-worth individuals often have more complex assets in their accounts, meaning the fair market valuation of their wealth may not be apparent.
Our lawyers could retain an accountant or other valuation specialist to assess the value of your assets, including the following:
The current value of pension benefits will be affected by a spouse’s life expectancy, potential for future contributions to pension plans, interest rates, and inflation projections.
Executives and key employees frequently receive deferred bonuses, stock options, or other equity incentives as part of their compensation.
An executive’s employment agreement might include provisions that give them a substantial pay package upon departure from an employer.
High-net-worth individuals often keep a portion of their wealth in stocks, bonds, real estate, fine art, and other collectibles, precious metals, or cryptocurrencies.
Your attorney could thoroughly appraise your capital to ensure a just division of benefits in your divorce proceedings.
Unlike many other states that adhere to the equitable distribution of assets, Texas is a marital property state. With marital property laws, divorcing couples in The Colony typically divide their pension and retirement benefits equally.
The situation may become complicated if a spouse co-mingled a separate property owned before the marriage with assets contributed to a pension or retirement account. Identifying and separating such assets could change the final pension and retirement division.
In The Colony, the QDRO defines each divorcing party’s rights to the amounts of pension and retirement benefits they receive from the assets and accounts that have been identified and valued in their high-net-worth divorce process. All QDROs must properly qualify to comply with ERISA and all other federal retirement and tax laws and regulations.
The court retains jurisdiction to modify a QDRO with changes in the parties’ circumstances or any material positive or negative effects on the valuations of assets in the relevant accounts. At Towson Law Firm, PLLC, we could assist you in understanding this complex process.
Dividing pension and retirement benefits in The Colony high-asset divorces requires the knowledge and skills of an attorney who is thoroughly proficient in federal and state retirement laws. Contact our office to schedule a free consultation with our attorney. Benefit divisions in high-asset divorce cases may require extra time for proper analysis and asset valuation. Acting immediately gives you the best opportunity for a fair and sound division of assets. Contact us today to learn more.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.
