We ‘Wrote The Book’ On Divorce In Hawaii
Retirement Account Division In Divorce Can Be Complicated
If you are going through a divorce, you may find it surprising to learn that all or a portion of your retirement accounts is marital property. Most people believe these accounts to be their separate property. However, any funds placed in the accounts during the marriage are marital property, regardless of whose name is on the account. Any funds placed in the accounts before your marriage are yours to keep.
Obtaining An Equitable Split Of Retirement Accounts
If you and your spouse have retirement accounts to split as part of your divorce, there are a number of ways to do it. Hawaii is an equitable distribution state, but that does not mean that every asset must be divided 50-50.
To obtain an equitable split of marital property, you and your spouse should look at all of your assets, including your retirement accounts. To obtain a fair division, you could swap assets of equal value. When valuing retirement accounts, however, it’s important to consider that the distribution will be taxable as ordinary income. Other assets may not be subject to taxes or may be taxed at a lower rate. Our lawyers will use experts to help us protect your financial interests in divorce.
Pensions and retirement accounts are divided using a qualified domestic relations order. The QDRO is a judgment issued in court that states how much of a retirement account the receiving party should get and where the funds should be transferred.
Contact Our Attorneys For More Information About Division Of Retirement Accounts
If you have questions about retirement account division or any other concerns about your upcoming divorce, please contact Coates Frey Tanimoto & Gibson for a free consultation. You can reach us at 808-524-4854 or by filling out our contact form. From our office in Honolulu, we serve clients on all islands of Hawaii, including Oahu, Kauai, Molokai, Lanai, Maui and the Big Island.