David R. Bruegel, P.C.David R. Bruegel, P.C. brandDavid R. Bruegel, P.C.
Call Us Today
Local : 517-833-4196
Our Practice Areas

Retirement accounts must be divided correctly

We All Need A Champion

In Michigan, some couples seek do-it-yourself divorces. While it is fine for people to file for divorces on their own, it is important that they avoid making mistakes when they have retirement accounts or pensions that they need to divide.

Couples who have retirement accounts and pensions cannot simply withdraw the amounts from those accounts and give the money to the spouses that should receive the funds. If they do, they may suffer substantial tax liabilities and be forced to pay early withdrawal penalties. By filing the proper paperwork, it is possible to transfer retirement account funds directly from the paying spouse's account to the recipient spouse's own account. The transfers must comply with the guidelines of the IRS in order to avoid tax liabilities and early withdrawal penalties.

Dividing certain types of retirement accounts and pensions requires that the couples complete qualified domestic relations orders and submit them to the plan administrators. These forms must be completed correctly and comply with state laws. Couples should also not agree to finalize their divorces until the QDROs are in place. If they do, the spouses who should receive money might be left without anything.

Couples who have amassed substantial balances in their retirement accounts and pensions during their marriages may have to split their accounts in the property division portions of their divorces. In addition to these types of accounts, couples who are going through high-asset divorces may need to divide many other asset classes that could potentially result in tax liabilities. Attorneys who are experienced in handling high-net-worth divorces might be able to help their clients save money and preserve their abilities to retire on time. Legal professionals might also be able to help locate any hidden assets so that their clients receive their rightful shares.

No Comments

Leave a comment
Comment Information
  • Expert Network | Distinguished lawyer | David R Bruegel
  • National Association Of Distinguished Counsel | Nation's Top One Percent | NADC
  • This Attorney is Lead Counsel Rated. Click here for more Information.Elder Law & Estate Planning

Share Your Concerns.

The first step toward tackling any legal problem is to talk it over with a trusted professional. Discuss your legal worries with attorney David Bruegel. Call or send an email to get started.

Send Your Information Today

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

David R. Bruegel, P.C.

Attorney Image
Avvo Rating 10.0 Superb Top Attorney General Practice Peer Review Rated For Ethical Standards & Legal Ability AV Preeminent Martindale-Hubbell from LexisNexis

Contact Information

155 W. Maple St.
P.O. Box 316
Mason, MI 48854

Phone: 517-833-4196
Fax: 517-676-6035
Map & Directions

Review Us