Last Updated: Aug 10, 2026
Read Time: 3 mins
Dividing property during a divorce can feel overwhelming, especially when retirement accounts are involved. These accounts often represent years of hard work and careful planning, so we want to handle them in a way that protects both value and future security. In Tennessee, we focus on evaluating all marital assets as a whole and then determining a fair division, which may not always mean splitting each asset exactly down the middle. This approach often helps us preserve retirement accounts whenever possible.
How Marital Assets Are Valued In Tennessee
When dividing property, the first step is to determine the total value of all marital assets. Let’s say the combined value of everything is $100,000. While it might seem like each spouse would automatically receive $50,000 in value, there’s often some flexibility in how that division looks. This is because we can offset certain assets against others. For example, instead of splitting a retirement account in half, one spouse might receive other assets that match their share in value.
By taking this route, we can avoid unnecessary complications, fees, and tax consequences that can come with dividing certain retirement accounts. This method works especially well when there are enough non-retirement assets available to balance the division.
Why Preserving Retirement Accounts Can Be Better
We often recommend leaving retirement accounts untouched when possible. Retirement savings are meant for the future, and dividing them during divorce can trigger unintended consequences. By reallocating other marital assets, we can meet the division requirements without reducing the long-term growth of those funds.
If both spouses agree, we can structure the property division so that one person keeps their retirement accounts intact while the other receives a comparable share in other property, such as home equity, vehicles, or cash savings.
When Retirement Accounts Must Be Divided
There are situations where splitting a retirement account is necessary. The process depends on the type of account. For IRAs, the division is relatively straightforward. We can work directly with the financial institution to roll over the agreed-upon portion to the other spouse’s IRA. This is done with the final divorce decree and avoids taxes or penalties.
For employer-sponsored plans such as a 401(k), we use a Qualified Domestic Relations Order, or QDRO. This legal order allows us to divide the account without triggering early withdrawal penalties or immediate tax liabilities. It’s a precise process that protects both parties from unnecessary financial setbacks.
Our Goal In Property Division
Our priority is to make property division as efficient and fair as possible while protecting valuable assets like retirement accounts. We look at the whole picture, assigning values to all marital property, then making adjustments to reach a balanced outcome. In many cases, that means moving other assets around so that retirement funds remain untouched.
At Patterson Bray PLLC, we help clients throughout Tennessee take a thoughtful approach to property division that keeps their long-term financial well-being in mind. Working with our Memphis, TN divorce lawyer can make a significant difference in protecting your retirement savings and securing a fair settlement.
If you are going through a divorce and need guidance on dividing retirement accounts or other marital assets, we are here to help. Contact us today to discuss your situation and find the best way forward.
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We loved the staff at Patterson Bray. Everyone was very professional. Judith was very thorough and explained everything extremely well. We would recommend Patterson Bray to anyone.Posted on Google![]()
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My experience with this firm, particularly Judith Denham has been truly exceptional. From the consultation to the finish, the attention to detail, listening and responding to my needs. My documents were completed timely and professionally. I highly recommend Patterson Bray.Posted on Google![]()
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PattersonBray Estate Planning was an incredible firm to work with setting up our Trust. Judith Denham was thorough, very smart, and personable as she patiently explained each part. Gabby put together a very professional beautiful binder for us to have, and has answered questions we have had since then. I am so glad they were recommended to us, and we had them to walk us through this procedure.Posted on Google![]()
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Heath Taylor was a genuine joy to work with during my divorce: straight forward, professional, and knowledgeable. I do hope I never have the need to acquire more legal help, but if I do, he'll be my first call. Thank you for everything, Heath!!Posted on Google![]()
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I FOUND PATTERSON BRAY AND JUDITH DENHAM TO BE PROFESSIONAL, VERY THOROUGH, AND PERSONAL. I DID NOT FEEL LIKE A CLIENT, BUT A PERSON. I AM SO IMPRESSED WITH THEM, ESPECIALLY JUDITH AND GABBY. VERY GRATEFUL FOR ASSISTANCE. M.JOHNSONPosted on Google![]()
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We set up a trust with Judith, at Patterson Bray and we received excellent service. Everything was explained thoroughly and everyone was very friendly and professional. I would definitely use her and the firm again, if needed.Posted on Google![]()
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