Your individual retirement benefits can be divided as part of your final divorce. In most cases, you will pay no tax at the time of transfer. Instead, you will recognize any income or benefits you receive from the plan when you receive a distribution.

If you have a qualified retirement plan, such as a pension plan or 401(k) account through your employer, your plan/account would be divided by a qualified domestic relations order (“QDRO”). A QDRO is a court order which instructs the plan to divide the benefit and ensure that the recipient spouse will pay taxes on any distributions.

If you have an Individual Retirement Plan (“IRA”), you can divide it tax free in your divorce by using an IRA Transfer Order. After transfer, the IRA is treated as the recipients’ own IRA account with all the resultant tax benefits and consequences.

Learn more about Minneapolis, MN divorce attorney Jonathan Fogel: Mr. Fogel has extensive experience handling complex divorces and other family law matters, including spousal maintenance, custody disputes, post decree matters, paternity, and domestic abuse. Mr. Fogel has appeared numerous times as a guest on radio and television programs, both locally and nationally, to discuss issues related to divorce. He is the author of the book Preparing for Divorce While Happily Married and he has been recognized by Mpls. St. Paul Magazine, Twin Cities Business Monthly, and Minnesota Law & Politics as a “Super Lawyer” and a member of the top 6% of attorneys in Minnesota.