Divorce & Deferred Compensation
Skilled Denver Divorce Lawyers Addresses Deferred Compensation
A marriage involves the investment of your time, efforts, and money. You may have envisioned growing old alongside your spouse, centering your future plans on the mutual assets you have accumulated together. Unfortunately, going through a divorce can be devastating both emotionally and financially. It is important to make sure all sources of income are disclosed, including deferred compensation, so it can be included in any settlements and court orders. At Nicholas Family Law, our Denver divorce attorney works aggressively to uncover current and potential future assets you and your spouse possess, so they can be divided fairly in your divorce proceedings. With over 30 years experience in representing people in these situations, we work hard to ensure your financial security is protected, now and in the years to come.
Your Rights to Deferred Compensation in Denver Divorce Proceedings
In Denver divorce cases, any property and assets earned, accumulated, or otherwise acquired by the couple are subject to the rules of equitable division. This means that rather than a straight down the middle, 50/50 split, marital property and assets are divided in a way that is considered as fair to both parties. Under the Colorado Dissolution of Marriage Act (C.R.S. 14-10-113), this includes any money in financial accounts, as well as pensions and retirement funds.
At Nicholas Family Law, we understand the important role deferred compensation plays in these proceedings. These represent investments you and your spouse may have made over the course of your marriage in any of the following:
- Private industry and government pension plans;
- Fixed, variable, and indexed annuities;
- Profit sharing plans through businesses and employers;
- Keogh plans, IRAs, and various 401(k) plans.
You may have earned money over the course of your marriage that went directly in these accounts, or you may have contributed to these assets by sacrificing your own career or education for the sake of your spouse or your children. In either case, you are entitled to a portion of the proceeds, and our Denver divorce attorney is here to help ensure you get your fair share.
Dividing Deferred Compensation as Part of Your Divorce
When dividing deferred compensation in a Denver divorce, you may be entitled to a lump sum share, or a percentage of the total account. You will also want to consider taking a deferred distribution, or whether to roll funds into another 401(k) or similar accounts. Under Internal Revenue Service (IRS) guidelines, there are potential tax ramifications depending on how you take distributions from deferred compensation plans, and you will need a Qualified Domestic Relations Order (QDRO) in order for the account administrator to disperse your share of the funds.
At Nicholas Family Law, our Denver divorce attorney can help ensure all of these issues are addressed, and in a way that protects your best interests. We provide experienced, professional legal representation you can trust to guide you through every aspect of your high asset divorce case. Reach out and call or email our office today and request a consultation to discuss your situation and how we can assist you.