CHRISTIAN D. SMED, P.A. Marital and Family LaW TYPES of Retirement accounts
Understanding Retirement Plans in Divorce
There are nearly countless types of retirement funds and employment benefits that must be identified, valued, and divided during your divorce. In most cases, retirement assets cannot be divided by agreement alone--a separate court order called a Qualified Domestic Relations Order (QDRO) is required to legally split most retirement plans. One spouse cannot simply write a check to the other.
Defined Contribution Plans – These are tax-deferred accounts where employees contribute a fixed amount or percentage of income, often with employer matching. A QDRO is typically required to divide these:
401(k), 403(b), and 457(b) savings plans
Profit sharing plans
Stock bonus plans
Thrift savings plans
Cash/deferred salary reduction plans
Employee stock options (ESOPs)
Federal Employees Retirement System (FERS)
Thrift Savings Plan (TSP)
Individual Retirement Accounts (IRAs) – IRAs are personal retirement savings accounts. While a QDRO usually isn’t required to divide an IRA, the process still needs to be handled carefully. Each account is different Dividing an IRA in divorce should be done through a court order that clearly states how the funds are to be split. If not done correctly, there may be tax penalties or delays. Common IRA types include:
Traditional IRAs
Roth IRAs
SEP IRAs
SIMPLE IRAs
Defined Benefit Plans (Pensions) – These employer-sponsored plans calculate retirement benefits based on years of service and salary history. They often restrict immediate access, even with a QDRO, and benefits are typically paid at retirement age.
Traditional pension plans
Joint and survivor annuities
Qualified retirement benefit plans
Bottom Line:Work with an experienced attorney who understands how each type of plan operates. Florida family law attorney Christian D. Smed, Esq. has the legal and practical knowledge to help ensure retirement assets are divided correctly—preserving your rights and avoiding costly mistakes.
At Christian D. Smed, P.A., we focus exclusively on Florida family law. Attorney Christian D. Smed is licensed in Florida and provides full-service QDRO preparation—not just drafting, but also the legal review, plan compliance, and court coordination required to secure your benefits.