Practice Area
QDRO's
Qualified Domestic Relations Orders — Pensions, Retirement, and Investment Accounts in Divorce
For many divorcing individuals, the most substantial assets up for negotiation will be retirement and investment accounts of various kinds. Under some circumstances, these can be relatively simple to identify as marital property — no matter how large the portfolio balances might be — and they can be liquidated and divided, bought out, or settled through the use of Qualified Domestic Relations Orders (QDROs).
In other cases, the division of investments and pension accounts is complicated by characterization issues, valuation problems, or the vague terms of an old prenuptial agreement. Some 401(k) accounts or defined benefit pensions are difficult to value or divide if part of their value existed prior to the marriage.
What Is a QDRO?
A QDRO is a court order given to the administrator of a retirement plan directing it to make payments to both ex-spouses. For example, if the 401(k) is in the ex-husband's name and there is a valid QDRO entered directing the plan administrator to pay fifty percent of the payments to the ex-wife, once the ex-husband begins receiving payments (after his retirement) the administrator must remit half of each payment to the ex-wife.
This special exemption regarding obtaining cash without penalty only applies to a 401(k) pursuant to the terms of a QDRO; it does not apply to IRAs.
Complex Characterization Issues
Retirement and investment accounts often raise complex characterization questions — particularly when a portion of the account's value existed before the marriage. Barbra Amron Weisberg, P.A. has the experience to navigate these issues and ensure that the division of retirement assets is handled accurately and fairly.
See also: Asset Valuation & Characterization and Retirement & Investments.
Questions About Retirement Assets in Your Divorce?
Contact Barbra Amron Weisberg, PA in Boca Raton for a private consultation.