Towson Divorce Lawyer | Marital Property | Retirement Interensts
Amar S. Weisman Has A Track Record of Protecting Clients
Amar S. Weisman is distinguished by Expertise.Com as one of the 21 Best Divorce Lawyers in Baltimore for 2020 and recognized as one of the Top 10 Family Law Attorneys in Maryland by Attorney And Practice Magazine. He has also been recognized since 2016 as one of the top 10 lawyers for client service by the American Institute of Family Law Attorneys: Mr. Weisman is a graduate of Georgetown University and the Peter Angelos School of Law.
Retirement Assets Are Subject to Equitable Distribution
Retirement assets that were acquired during the marriage by either or both spouses are subject to equitable division under the Marital Property Act when a marriage is dissolved. If part of the retirement asset was acquired before the date of marriage and part of the retirement interest was acquired after the date of the marriage, then the Court may apply the Bangs Formula originating in a 1984 Court of Appeals case captioned as Bangs v. Bangs. The formula allocates the retirement proportionally. Special rules may apply to military Retirement assets as well as deferred compensation.
Qualified Domestic Relations Orders (QDROs)
During the divorce process, certain retirement assets are divided through a device called a Qualified Domestic Relations Order (QDRO). These orders must be perfectly precise in order to ensure money is divided in accordance with the final divorce judgment and/or Marital Settlement Agreement.
Types of Retirement Assets Divisible In Divorce
Marital property includes all property acquired during the marriage however titled meaning. Unless there is a prenuptial agreement, all retirement earned by either party during the marriage is marital property subject to equitable distribution. Divisible assets include but are not limited to:
- Traditional pensions like those municipalities maintain for police officers.
- Military Retirement benefits
- Individual Retirement Accounts
- Roth IRA accounts.
- Federal Thrift Savings Plans.
- Restricted Stock Options
- 401(k) plans managed by financial institutions.
- 503(b) retirement plans.
Early Retirement Penalties
Early retirement penalties are not typically considered on an economic basis unless the early retirement is actually going to occur. Maryland has certain rules concerning the consideration of these penalties during the divorce process. In any case, your attorney can pursue establishing the handling of such penalties before valuation procedures take place.
Math, Computation & Valuation
It is not unusual for employers, especially governmental agencies, to require employees to make contributions to a pension plan as a condition of employment. Employers typically make contributions to the plan as well. These contributions accumulate, along with any earnings, in an account established for the employee. In some instances, as soon as vesting has been completed, the employee is free to withdraw the funds upon termination of employment.However, individuals should use caution in such situations because the cash-out value of the plan might be very small in relation to the present value of the future benefits. This is especially true in the case of long-term employees. Accordingly, it would be prudent for divorcing individuals to utilize the services of a skilled divorce lawyer to ensure that a proper valuation is made.
Call (410) 321-4994 For Consultation
Please Call (410) 321-4994 during business hours to schedule a free consultation for the purpose of deciding whether you want to retain Amar S. Weisman. The firm does not accept pro bono clients at this time. To retain legal services and advice, you must pay a retainer, See Policy on Fees/Costs. The law firm is located in the heart of Towson near The Circuit Court For Baltimore County, Towson Town Center, Goucher College and Towson University, at 1018 Dulaney Valley Road (MD-146), Second Floor Towson, MD 21204. We represent clients throughout the Baltimore area including Aberdeen, Abingdon, Baldwin, Bel Air, Bowleys Quarters, Brooklandville, Carney, Catonsville, Cockeysville, Edgewood, Essex, Garrison, Glen Arm, Greenspring Valley, Homeland, Hunt Valley, Hydes, the Joppa Road Corridor, Kingsville, Long Green, Lutherville, Middle River, Nottingham, Owings Mills, Parkville, Pikesville, Perry Hall, Reisterstown, Riderwood, Rodgers Forge, Rosedale, Ruxton, Sparks, Sparrows Point, Stoneleigh, Timonium, Towson, West Towson, White Hall, White Marsh, and the York Road corridor. We have also represented a number of out-of-state clients. The law firm does not guarantee the results in any matter.