It could be a problem if it isn’t. Unfortunately, it is not uncommon to have cases where years have gone by and the QDROs have not been entered. It’s one of those things that can fall through the cracks once you’re divorced. You think everything has been done, but the division of these retirement accounts […]
Pensions, Retirement Plans, QDROs
Once a divorce is complete, is there anything else that needs to be done with regards to retirement accounts?
It is very important to follow through with the division of the retirement accounts. The QDRO, which hopefully was entered the same day of the divorce with the judgment, needs to be submitted to the plan administrator for approval. Additionally recent cases have made it very clear that when it comes to federal retirement plans […]
Is there a way to gain access to retirement funds without incurring the 10% penalty for early withdrawal?
There is. With a QDRO this can allow a divorcing spouse under the age of 59-and-a-half a one-time withdrawal of money from certain accounts without incurring that standard 10% early withdrawal penalty. The catch to this is that this withdrawal must be performed through a QDRO. But it can be very useful when needing to […]
Can Social Security benefits be divided on divorce?
The actual Social Security benefits cannot be divided. This is because the Social Security benefits are regulated by the federal government and there is really no way to divide them and effectuate that through those regulations. However, this does not mean that a former spouse is not entitled to a portion of their spouse’s Social […]
Is a spouse who never worked entitled to a share of their working spouse’s pension or retirement accounts?
A spouse who has never worked is absolutely entitled to a portion of their spouse’s marital retirement accounts. All money earned during the marriage is marital money which is subject to division in a divorce. Arin Fife is a family lawyer at Boyle Feinberg, P.C. in Illinois. To learn more about the firm, visit www.bffamlaw.com. […]
Is a military spouse’s pension divided like other marital assets?
The Uniformed Services Former Spouses Protection Act allows states to treat a service member’s military pension accrued during marriage as a marital asset. But both the rules and the mechanics of distribution are different from those applying to civilian pensions and retirement accounts. For example, under the 10/10 rule, if a couple has been married […]
What happens if it’s not possible to determine the balance of a retirement account at the time of marriage?
If this is the case, a formula can be used to determine the non-marital portion of that account. You can simply multiply the average yearly contribution times the number of years worked prior to the marriage. The problem with doing this is that it really is an imperfect method. The premarital portion can easily be […]
Can a retirement account be both marital and non-marital property?
It absolutely can. When an account was in existence before the marriage, a portion of it may be non-marital. That portion will not be subject to division in the divorce. With a prime contribution plan, it’s also impossible to determine the account balance as of the time of the marriage. A good piece of advice […]
What is a QDRO and when is it used?
If you’re dividing a retirement account that is qualified, such as a 401(k) or a pension, your attorney will need to prepare a QDRO, which is a qualified domestic relations order. This is an order that will be entered with the courts that is then sent to the planned administer of the retirement account to […]
How is a retirement account divided?
When dividing assets the client must really consider whether to divide the retirement account either by dollar amount or percentage or to negotiate a trade-off of the types of assets such as the marital home. However, the client must really be cautious when contemplating a trade-off of this type. Considerations should be made for things […]
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