If you have any retirement assets and are in the process of getting a divorce, chances are you have heard of a qualified domestic relations order (QDRO). Unless you and your spouse can work out an arrangement where you keep your respective retirement plans and offer other marital assets in their place during the asset division process, you will need a QDRO. Moreover, given the complexities you will face during this process, it is also crucial that you hire an attorney with extensive experience in handling such cases.
A QDRO allows spouses to divide assets held in retirement plans, including 401(k) plans or pension plans, without incurring an early withdrawal fee. Only the assets you accumulated in your retirement plan during your marriage is subject to division. Anything you earned or contributed before tying the knot is considered separate property and will not end up on the chopping block.
A QDRO is only applicable if the is covered by the Employee Retirement Income Security Act of 1974 (ERISA) since, under this act, a participant cannot legally assign a portion of his or her plan to another individual.
After a judge awards you a portion of your spouse’s retirement assets, you can decide how you choose to receive these assets. It is crucial to understand the consequences of your choice, so you do not end up finding yourself in a financial predicament.
Here are some of your options:
If you are getting a divorce, you and your spouse must divide all marital assets, including retirement plans. Given the difficulties of this process, it is imperative to hire an experienced legal advocate to help you navigate the process. At Dale L. Bernstein, Chartered Law Office, our knowledgeable family law attorney will guide you through every step and help ensure your interests are protected. Our attorney has provided exceptional legal representation for countless clients for more than 33 years and is backed by a proven history of success.
Call our law office today at (727) 312-1112 to set up an initial consultation.