Can Retirement Plans be Divided?
Like other property, the marital portion of retirement accounts or plans can be divided by agreement between the spouses. If an agreement cannot be reached, a court often has the power to divide the marital portion of retirement plans between the spouses. Retirement plans come in many shapes and sizes (for example, 401(K)s, 403(b)s, IRAs, profit sharing plans, stock options, etc.) Because of built in capital gains, cost-basis, and other issues, the Internal Revenue Code, the Employee Retirement Income Security Act and other laws and regulations that govern retirement plans should be considered prior to any division of retirement.
