Maryland Divorce and Retirement Accounts

Under Maryland divorce law, retirement accounts, such as defined pension plans, IRAs, 401k, 403b, 457b and TSP's are considered martial property unless the contents were acquired prior to the marriage. As marital property it is subject to a division based upon the Maryland divorce law of "equitable distribution". This does not necessarily mean 50-50%. A Maryland court may elect to award more than 50% to one or the other party. The basis upon which such an award would be made includes the relative contributions made by each party to the marriage. These contributions may include income, other financial support, household and child rearing duties and other support for the couple and family. Although the typical split made by Maryland courts is 50-50% we at the Law Office of Nicholas T. Exarhakis have seen splits made by the court in the 30-70% range. The parties, subject to a written Separation Agreement may also agree to a division other than 50-50%. In those situations one party may be receiving a greater share of another asset in exchange for their interest in the retirement accounts. There are substantial tax ramifications of a transfer or withdrawal of funds from a retirement account if not process properly. For more information regarding this, or any other family law matter in Maryland, please contact the Law Office of Nicholas T. Exarhakis

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