The division of retirement accounts is commonplace in Oklahoma divorces. The idea is easy to understand, however, the actual division of retirement accounts is a very specific process. There are very specific tax consequences if it is done incorrectly. With her experience as a CPA, Sara Schmook has developed proven processes to make this as seamless as possible. If you have specific questions about this please do not hesitate to contact us and ask for Jennifer.
In general, retirement accounts include the following:
Generally, any of these types of accounts are potentially going to be divided when parties divorce. This is done by submitting a Qualified Domestic Relations Order, or QDRO, to the Court for approval. It is important that you understand how much of the accounts accumulated during your marriage are considered marital property versus separate property. It is also important that you understand this is not likely to be cash money awarded to you, which is very different from splitting your bank accounts. Withdrawing funds from a retirement account before you are 59 ½ will likely subject you to a tax penalty and we do not advise it.
Each of these types of accounts is managed by a Plan Administrator. And each Plan Administrator may have very specific requirements for the division of the accounts. In general, it is important to gather the following information to expedite the division of the accounts:
