401(k), IRA & Stock Division

If your 401(k), IRA, or brokerage account grew during the marriage, that growth is a marital asset subject to division — often the most valuable one after the house. Florida does not automatically split these accounts 50/50; the division follows equitable-distribution principles, and the mechanics of the split carry tax consequences that punish careless drafting.

Two legal vehicles — don't confuse them

IRAs divide by a transfer incident to divorce: labeled correctly in the agreement, the transfer itself is tax-free, and the recipient takes over future tax responsibility. Labeled carelessly, the sending spouse can owe tax and early-withdrawal penalties on everything transferred. 401(k)s and other qualified plans divide by a Qualified Domestic Relations Order (QDRO) — a separate order meeting the plan administrator's requirements, federal law, and IRS rules. The receiving spouse can roll QDRO funds into their own plan or IRA tax-free.

Why we do QDROs in-house

Many firms outsource QDROs to specialty vendors that charge heavily and add months. This firm drafts QDROs in-house whenever the settlement structure allows, to the plan administrator's specifications — saving clients money and, more importantly, time. Your divorce doesn't wait on the QDRO; the order is typically executed within weeks after judgment.

Details that decide outcomes

Clear percentage and dollar breakdowns, correct account numbers, the right classification for each account, and coordination with the plan administrator — these unglamorous details are the difference between a clean division and an amended tax return. We sweat them so you don't.