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Securing Retirement Assets After Divorce
Clients often believe that the divorce decree is the ultimate document needed to finalize their marital transition and distribute all marital assets. However, if you have been awarded any of your former spouse’s retirement assets, a Qualified Domestic Relations Order is necessary to direct the creation of an asset in your own name, separate from your ex-spouse’s interest.
Understanding QDROs Is Critical
A Qualified Domestic Relations Order (“QDRO”) is a separate court order directing when and how a retirement plan administrator should split marital assets such as pensions, 401(k)s, SEP plans, deferred compensation plans, 403(b) plans, etc. Because most retirement plans are governed by ERISA and the Internal Revenue Code, certain language and elections are required to divide these assets once a divorce is finalized.
Understanding the type of retirement account, the way the account can be divided, and the special legal and tax consequences of dividing the account between formerly married parties is critical to ensuring that the intent of the parties is carried through to retirement, and protecting the assets negotiated as part of the underlying divorce.
QDRO Services Offered At The Cavall Law Firm, PLLC
I offer QDRO consultation, preparation, and review for a reasonable flat fee. There may be additional charges if we must go back to Court for any reason or point of clarification other than approval of the proposed QDRO, such as an amendment or modification to the property and settlement agreement.