Handling Your Retirement in a Divorce

Retirement benefits are one of the many issues that may need to be settled in divorce proceedings. For example, if one spouse participated in a 401K plan through his employer during the marriage, his wife would be entitled to some of the benefits when he retired. But when a couple divorces, it is necessary to plan for the division of the benefits-either immediately or upon the employee spouse's retirement.

This is where a QDRO comes in. The term QDRO, pronounced “quad row,” stands for Qualified Domestic Relations Order. A court will institute this order to divide the benefits of a given retirement plan among spouses when they dissolve their marriage. A QDRO is also important because it recognizes that there will be an alternate payee who can receive a portion of the benefits. This alternate payee can be anyone from a former spouse to a domestic partner to a child. A QDRO will enable any payee to receive a proper share of the retirement benefits. Furthermore, if one spouse already collected retirement benefits during a marriage, the other may be able to collect a share of those funds with a QDRO.

To obtain a QDRO, consult a legal professional in a timely manner. The process of obtaining a legally valid QDRO can take months, and it can take even longer to actually receive any benefits.

Categories: 
Related Posts
  • How Are Partially Vested Interests Divided During Divorce? Read More
  • Parental Alienation in High-Profile Divorces: Recognizing and Addressing the Signs Read More
  • High-Net-Worth Divorces: Protecting Assets and Privacy in the Public Eye Read More
/

Schedule a Divorce & Family Law Consultation

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. Filling out this form does not constitute an attorney-client relationship.

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.