Retirement Plans

[bkpearson]

What is the name of your state?What is the name of your state? Virginia

My husband has retirement plans from several companys. He agrees half is mine, but his lawyer is saying they are worth only 50 percent of face value because the money has not been taxed. I do not think this is right. Even if you do take into concideration the tax factor, when you retire your in the lowest braket far from 50 percent.

 

[LdiJ]

What is the name of your state?What is the name of your state? Virginia

My husband has retirement plans from several companys. He agrees half is mine, but his lawyer is saying they are worth only 50 percent of face value because the money has not been taxed. I do not think this is right. Even if you do take into concideration the tax factor, when you retire your in the lowest braket far from 50 percent.

That is total BS. Retirement monies are divided via QDROs, which means that the accounts are basically divided into two separate accounts, with each party being responsible for paying their own taxes should they choose to withdraw the funds before retirement.

Even IF, he mistakenly withdraws the funds to hand them over to you, if its a division of marital assets he doesn't not have to pay the 10% penalty tax....just regular income taxes.

His attorney is either playing games, or doesn't understand how things work regarding retirement accounts (which would be scary).

 

[nextwife]

Were you married to him during the time all these retirement plans accumulated? Did any predate the marriage?

 

[LdiJ]

Were you married to him during the time all these retirement plans accumulated? Did any predate the marriage?

Apparently the stbx and his attorney already agree that she is entitled to a share of the accounts...they are just trying to cut the value in half by the "tax" argument. Again, that's a bogus argument since the funds are divided, "pre-tax" and each party is then responsible for what they do with the funds.