What You Need to Know
For many couples, retirement accounts are among the most valuable assets accumulated during a marriage. In a Missouri divorce, Dividing Retirement Accounts in a Missouri Divorce is often subject to division — but the process is not as simple as splitting a checking account in half. Understanding how retirement assets are treated can help protect your financial future and avoid costly mistakes.
If you’re going through a divorce in St. Louis County, it’s especially important to work with an experienced family law attorney who understands both Missouri divorce law and the technical rules governing retirement accounts.
Are Retirement Accounts Considered Marital Property in Missouri?
Missouri is an equitable distribution state, meaning marital property is divided fairly — not necessarily equally. Retirement accounts are often considered marital property, at least in part.
Generally:
- Contributions made during the marriage are marital property and subject to division.
- Contributions made before the marriage are usually considered separate property, though they must be properly documented.
- Any growth or earnings on marital contributions are also typically marital property.
This applies even if the retirement account is in only one spouse’s name.
Types of Retirement Accounts Commonly Divided in Divorce
In St. Louis County divorce cases, courts frequently deal with a variety of retirement assets, including:
- 401(k) and 403(b) plans
- Pensions (private, government, or military)
- IRAs and Roth IRAs
- Thrift Savings Plans (TSPs)
- Deferred compensation plans
Each type of account has different rules for valuation, division, and tax treatment.
How Retirement Accounts Are Divided
Missouri courts may divide retirement accounts in several ways, depending on the circumstances of the marriage and the overall property division.
Offsetting Assets
In some cases, one spouse keeps the retirement account while the other receives a larger share of other marital assets, such as home equity or cash savings. This approach avoids splitting the account but requires careful valuation.
Direct Division
When accounts are divided directly, the court may order that a portion of the account be transferred to the other spouse. This is often done using a Qualified Domestic Relations Order, or QDRO.
What Is a QDRO?
A Qualified Domestic Relations Order (QDRO) is a legal document that allows retirement funds to be transferred to a former spouse without triggering early withdrawal penalties or immediate tax consequences.
QDROs are commonly required for:
- 401(k) plans
- Pension plans
- Employer-sponsored retirement accounts
Without a properly drafted and approved QDRO, a spouse may face:
- Significant tax liability
- Early withdrawal penalties
- Delays or denial of benefits
This is one of the most common and costly mistakes people make during divorce.
Tax Considerations You Should Not Ignore
Dividing retirement assets incorrectly can have serious tax consequences. For example:
- Early withdrawals without a QDRO may result in income taxes and penalties
- Different accounts have different tax treatments (traditional vs. Roth)
- Future tax liability may affect the true value of an asset
A St. Louis County divorce attorney can help ensure retirement assets are divided in a way that is both legally sound and financially responsible.
Pensions and Future Benefits
Pensions can be especially complex because they often involve future payments rather than current account balances. Missouri courts may:
- Award a percentage of future pension payments
- Use a formula based on years of marriage and employment
- Address survivor benefits and cost-of-living adjustments
Proper language in the divorce judgment is critical to protecting these rights.
Why Legal Guidance Matters
Dividing retirement accounts is not just a financial issue — it’s a legal one. Mistakes can be difficult or impossible to correct after a divorce is finalized. An experienced St. Louis County family law attorney can help you:
- Identify which portions of retirement accounts are marital vs. separate
- Ensure proper valuation of retirement assets
- Draft or review QDROs and other required orders
- Protect your long-term financial security
Talk to a St. Louis County Divorce Attorney
If you’re facing a divorce involving retirement accounts in St. Louis County or elsewhere in Missouri, the attorneys at Rogers Sevastianos & Bante LLP can help you navigate the process with confidence. We work closely with financial professionals to ensure retirement assets are divided fairly and correctly under Missouri law.
Contact Rogers Sevastianos & Bante LLP today to schedule a consultation with an experienced St. Louis County divorce lawyer.
Disclaimer: The information in this blog is for general informational purposes only and does not constitute legal advice. Every legal situation is unique, and you should consult an attorney for personalized guidance on your specific circumstances.