Bucks County Equitable Distribution Lawyer

Preserve Your Rights to Retirement Assets in Divorce in Pennsylvania and New Jersey

Retirement benefits are frequently the highest valued assets shared by a couple. When spouses decide to divorce, careful attention must be given to how retirement assets are divided. Otherwise, significant tax consequences and penalties could result.

At Risoldi Law Offices, LLC, we have extensive experience representing clients through the divorce process. Utilizing her nearly 20 years of legal experience, attorney Carla V. Risoldi assists clients in establishing fair property division agreements and carefully constructed Qualified Domestic Relations Orders (QDROs) for clients in Bucks, Montgomery, Philadelphia, Berks and Delaware counties in Pennsylvania and throughout New Jersey.

Division of Retirement Benefits in Pennsylvania and New Jersey

Early distributions from an Employee Retirement Income Security Act (ERISA)-qualified retirement plan can result in significant income tax penalties to the spouse receiving the distribution. This may result in plan penalties or tax penalties to the account holder (the employee). However, a Qualified Domestic Relations Order can be used to divide the retirement assets without subjecting either spouse to tax consequences. The QDRO is a court order that directs the retirement plan administrator to divide the retirement account in accordance with the percentage determined by the court. Depending on the circumstances, the spouse's percentage may be transferred into a separate account with the same company or may be rolled into an IRA for the spouse's benefit.

ERISA-qualified retirement plans — thus, plans that may be divided using a QDRO — can include:

• 401(k) plans
• ERISA-qualified pension plans
• Defined contribution plans
• Keoghs
• Thrift savings plans
• Profit-sharing plans
• Money-purchase plans
• Tax-sheltered plans
• Defined benefit plans

However, non-ERISA-qualified plans, such as IRAs or certain pensions (pension plans for firefighters, police officers, government employees and certain other employees) cannot be distributed through a QDRO. A Domestic Relations Order (DRO) or other strategy may be necessary to minimize the financial consequences of early distribution.

In some cases, the parties to a divorce may negotiate a property settlement agreement in which one spouse surrenders his or her right to a percentage of pension benefits in exchange for an equivalent asset. It is critical to discuss this with an experienced attorney, however, in order to ensure your financial interests are fully preserved.

Two Convenient Office Locations in Bucks County
Langhorne: 215-741-3700 | Buckingham: 215-794-9300

Serving Clients in Pennsylvania and New Jersey

An attorney since 1991, Carla V. Risoldi has the experience, knowledge and skills necessary to create customized and effective Qualified Domestic Relations Orders for clients in Pennsylvania and New Jersey. When representing you in divorce, she ensures that you are informed of your rights, any progress in your case and what to expect moving forward. Call or contact us online to arrange an initial consultation with an experienced property division lawyer.

Our law firm represents clients in Bucks, Montgomery, Philadelphia, Berks and Delaware counties in Pennsylvania and beyond, and throughout New Jersey.

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