When it comes to property division in Divorce, the court will look to the term of the marriage. Whatever property, real or personal that has been acquired during the term of the marriage will be divided equally. Exceptions to this rule would be inheritance or personal injury awards that affect only one party. In addition to this, if the parties can prove that only one of them was gifted the property that would stay out of the marital pot.
When it comes to retirement plans pensions or IRAs, the court will again look to the term of the marriage. The court will divide the portion of the retirement property that was earned during the course of the marriage and give the other spouse 1/2 of that percentage of that property. Typically the court will order what is known as a QDRO to divide the retirement property. This means that the spouse who retires can begin taking the money at the age of retirement and this applies equally to the other spouse.
If the other spouse takes the money out before the beneficiary spouse is eligible without rolling it over into another retirement plan, that spouse will have to pay income tax and penalties on that money.
Please feel free to contact our offices for further guidance when it comes to division of property. We can help you get the fair and equitable distribution of property you deserve.