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(801) 254-9450 (801) 254-9450 In Utah, divorcing your spouse can have an impact beyond your shared bank accounts or real property. In addition to the traditional division of marital assets, the courts could also have jurisdiction over the benefits you earned throughout your career.
If you have questions about obtaining or terminating benefits after a South Jordan divorce, now is the right time to ask. At Carr | Woodall, our compassionate divorce attorneys are here to help you navigate these issues.
The state generally considers retirement accounts accumulated during the course of a marriage to be marital property. This means that even if only one spouse earned an income and contributed directly to an account, both spouses may be entitled to a share of those funds. Courts strive for equitable division during divorce, which does not always mean a 50-50 split. Instead, judges consider factors such as the length of the marriage, the earning capacity of each spouse, and other financial resources. This can complicate issues when it comes to obtaining or terminating benefits in a South Jordan divorce.
Dividing retirement accounts requires more than a divorce decree signed by a judge—there are procedural steps you will need to take to actually secure those benefits. In most cases, you will need a Qualified Domestic Relations Order (QDRO) from the court to request that the benefit plan administrator divide the account between the former spouses.
The QDRO protects the receiving spouse by allowing the transfer without triggering immediate, heavy-handed tax consequences or early withdrawal penalties. It also bars the account holder from depleting the account in a way that could harm their spouse’s share. A South Jordan lawyer could further explain the role of the QDRO and answer any questions you have about obtaining or terminating benefits after divorce at an initial consultation.
Not all retirement accounts are divided in the same way. Defined contribution plans, such as 401(k)s, are relatively straightforward to divide because they consist of an identifiable balance that can be split according to the terms of the QDRO. The funds can then be rolled into a separate account for the receiving spouse, and this requires little more than splitting the existing balance.
Defined benefit plans, such as pensions, are more complex. These accounts provide a steady stream of income upon retirement, as opposed to a lump sum. It is more difficult to determine how to split up the benefits between parties over the course of many years, so courts can draft a QDRO that explains how the account should be split. If you have further questions about these plans or how the process of obtaining and terminating divorce benefits works, our South Jordan attorneys are available to help.
In addition to obtaining benefits, termination of benefits may also be needed after a South Jordan divorce. In some cases, the spouse who is awarded the account may choose to cash out or reallocate funds. While this is possible, it often triggers tax obligations or penalties unless done through a properly structured transfer. Similarly, certain survivor benefits or spousal entitlements linked to pensions may need to be formally terminated through the divorce process to prevent ongoing obligations.
Whether you are obtaining or terminating benefits after a South Jordan divorce, you should rely on the guidance of experienced legal counsel. At Carr | Woodall, our attorneys are prepared to help you get the answers you need. While there are challenges that come with benefit and retirement accounts during the divorce process, our team is here to ensure you do not face them alone. Contact us to discuss your options.