By Pierce Blitch
When a couple decides to divorce, one of the biggest hurdles can be splitting up retirement accounts. Often, these accounts represent the largest shared asset. Figuring out how to divide them fairly and without penalties can be tough, but there are solutions. Georgia residents can rely on their divorce attorneys to navigate these tricky waters.
Three Ways to Handle an IRA in Divorce
Leave it Alone
One way to handle an IRA during divorce is simply to leave it untouched. The account owner keeps the IRA, while the other spouse receives a larger share of other assets. This method avoids the complexity of dividing the account but requires a fair balancing of other marital assets.
Split the IRA
Another option is to split the IRA, allowing each spouse to reinvest their portion into their own accounts. This requires only the official divorce decree. It’s a straightforward approach that ensures both parties walk away with a portion of the retirement savings.
Use the Funds for Support
The third method involves using the IRA funds to pay child or spousal support or to provide a lump sum cash payment to the receiving spouse. For this, a judge must approve a domestic relations order. Without this order, any early distribution from the IRA can result in hefty tax penalties and fees for both parties.
Accessing Retirement Accounts Without Penalties
It’s possible to access these retirement accounts without significant penalties, but it must be done correctly. Georgia couples going through a divorce should work with their attorneys to handle property division. With legal guidance, both parties can achieve settlement terms that best serve their interests.
Divorce can be a challenging process, but with the right strategies and legal help, dividing retirement accounts doesn’t have to be a source of added stress.
CALL THE Blitch Law Firm ATTORNEYS AT LAW TODAY TO DISCUSS YOUR FAMILY LAW MATTER
We fight for you, and we don’t back down. Every family law case has potentially life-altering consequences. We don’t hold back on providing our clients with the best possible representation. At The Blitch Law Firm, we understand the emotional and financial toll a family law case can take. If you, a family member, or a close friend are facing a divorce, child custody dispute, or any other family law issue, contact The Blitch Law Firm today at 706-434-8770 or visit us at 7004 Evans Town Center Blvd., Third Floor, Evans, Georgia 30809 to discuss your unique case and our dedicated family law strategies with one of our compassionate and experienced attorneys.
DISCLAIMER: The content on this site is offered solely for informational purposes and might not represent the current law in your jurisdiction. None of the details provided here should be interpreted as legal advice from The Blitch Law Firm or from the individual writer. Additionally, it is not meant to replace professional legal advice. Readers should not base their actions or decisions to abstain from actions solely on the information found in or available through this site. Instead, they should seek tailored legal or other expert counsel regarding their specific situation from an attorney or other professional authorized to practice in the reader’s state, nation, or other relevant licensing area.