401K distribution

North Carolina Divorce Law Divorce and Separation Answers
1

Dear confusedandlonely:

Greetings. I am sorry to hear about your situation. Yes, both spouses are entitled to half of all the marital assets, including each other’s retirement plans, stock options, and stock holdings. Remember that it is a split of equity though, not just assets. All transfers pursuant to separation and divorce are supposed to be tax free - so for retirement assets you must use a form called a Qualified Domestic Relations Order (QDRO)which I would highly recommend you have an attorney handle for you. Also, you will want to ensure that you do not lose any of your future benefits, so the language in your separation agreement needs to be correct concerning the transfers.

Good luck.

Janet L. Fritts
Attorney with Rosen Divorce
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
RosenDivorce.com
919-787-6668

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.

2

Hi -

We have a 3 year old child, and my husband recently had an affair. He moved out last week, and we split our physical belongings equally. There was no paperwork in regards to the move - we just worked it out how it seemed fair.

My question is in regards to 401K, and other work benefits - stock grants, etc. We do not have much in the way of liquid assets, but our retirement dollars / stock add up to a great deal - with mine being much greater than his, all collected during the course of our marriage. There are also several worthless stock options (based on current prices) in the mix.

Under NC law - does my husband have a right to the retirement / stock options as we work through our finances ? If so, how is the transfer handled so we don’t get killed with taxes?

Thank you for helping.

Do these other financial