DIVISION OF RETIREMENT ASSETS
BOTH SPOUSES OWN THE INVESTMENT PORTFOLIO
Retirement savings often represent the largest share of a couple’s marital estate. In divorce, these assets become a lightning rod for conflict, especially if a high-earning spouse feels the other does not deserve to share the fruits of his or her lifelong labors.
Under Michigan’s equitable distribution law, retirement assets accumulated during marriage are to be divided, no matter who earned the paychecks. However, these assets are not necessarily split 50-50, and there are many complex calculations and considerations.
The divorce lawyers at the Law Offices of Harris & Literski are highly knowledgeable about dividing retirement assets, from defined benefit plans to individual investments. We aim to clarify disputes over retirement funds to streamline the broader property settlement.
QDROS, PENSIONS, & OTHER ‘NEST EGG’ ASSETS
Our attorneys represent many high net worth clients who have accumulated substantial retirement portfolios, ranging from corporate executives and entrepreneurs to auto workers, military officers and government employees. We are familiar with the legal issues and tax considerations relating to different types of retirement assets such as:
Private pensions
Military and government pensions
Stock options and deferred compensation
401(k), IRA and other qualified plans
Stocks, bonds and mutual funds
Trust funds, gifts and inherited money
In general, investments and contributions prior to marriage are the property of the individual and subsequent contributions are marital property. But what about accrued interest or increase in the value of securities over time? What about present value versus future value?
Our attorneys work with outside experts to address these issues in a qualified domestic relations order (QDRO). The QDRO assigns each spouse a proportional share of the retirement portfolio, which in turn can be traded for other considerations in other marital assets. Our experts can also divide military pensions and other assets not assignable in a QDRO.
DO YOU HAVE LEGAL QUESTIONS ABOUT GIFTS, INHERITANCE AND PREMARITAL PROPERTY IN MICHIGAN?
Our firm’s family law attorneys can answer your questions about Michigan equitable distribution law and make sure you are treated fairly in the division of assets.
Contact us for a free consultation with a knowledgeable property division lawyer.