Now that I am a stockholder, and have the same eligibility to gains and losses as former husband, my “dollar amount” that I was awarded can and did change. This is a stock option account and is subject to gains and losses. The dollar amount was converted into shares of stock equaling said dollar amount. I was awarded a dollar amount in the MSA for a portion of the retirement. Different requirements for different states! BUT WHATEVER YOU DO, DON’T JUST FORGET ABOUT IT. Re-marriage does not affect your court ordered QDRO. Simply get your attorney of record, or a new attorney to draw up the QDRO. Meaning, most monies are still held by the fund. But as with most all QDRO’s, it’s paid out in monthly disbursements. and if parts of your monies are paid out to her then I’d have to go after her for those funds. But remember if your ex quits, retires or the like, then most plans allow disbursements set there after. But I learned that unless my wife quit, got fired or retired, then the money was still within the fund. I was nervous that time and other matters, such as my ex’s re-marriage, might void or decrease my rights to the court ordered QDRO. He was paid in full to represent me, and complete all orders of the court. That jogged my memory, and I called my attorney of record who represented me during the divorce. Her attorney completed the QDRO for my 401, but I did not follow through with getting my attorney to complete a QDRO for my ex’s 401 and 403.b. I had my own 401, she had the same, plus a 403B. My facts….I divorced my wife in Nov 2012. However your marital facts mirror my own, and I can address some of your questions. and Delray Family, First let me tell you both that I am not an attorney. If the QDRO doesn’t comply with certain laws, the participant spouse (the one who originally saved the money from his or her income) could be stuck with a tax liability on funds he or she transferred to an ex-spouse. Before the judge signs the QDRO, the plan administrator will actually need to approve the language of the Order to ensure that it meets all of the plan’s requirements. Many attorneys outsource the drafting of the QDRO because of the tedious requirements of federal law and of the various plan administrators. If the participant spouse has his or her retirement savings in a 401(k) plan, a portion of the plan funds will be rolled over into the receiving spouse’s IRA, with no tax and no penalty. If the participant spouse has a traditional pension, the plan administrator will establish a separate pension benefit for the receiving spouse. The receiving spouse will actually end up with his or her own separate account. With the assistance of a valid, approved QDRO, all or a portion of the retirement funds in a pension plan or 401(k) plan can be transferred from the plan participant spouse to the other spouse (now known as the “alternate payee”). If the parties’ retirement savings is held in a traditional pension (or “defined benefit plan”), a Employee Stock Option Plan (ESOP) or a 401(k) plan (or “defined contribution plan”), the law and the plan administrator will require a QDRO to accomplish the division of funds.ĭue to federal regulation of pensions and 401(k)s, there are detailed requirements with which every QDRO must comply to be valid. No QDRO is needed if the retirement savings are deposited in Individual Retirement Accounts (“IRAs”). Likewise, social security benefits, federal railroad retirement benefits, and some government pensions are not considered distributable in a divorce action. Non-marital property will not be divided in a divorce. Generally, unpaid retirement benefits accrued before the date of marriage will be considered non-marital or separate property. If either spouse accumulated retirement benefits during the marriage, those benefits will be considered marital property (unless a valid prenuptial agreement indicates otherwise). The transfer is accomplished without implicating any penalty or tax payment requirement. Specifically, it is a court order signed by a judge, which directs the plan administrator of the husband’s or wife’s pension or 401(k) to distribute a portion of those funds to the other spouse. It is, though, quite common.Ī Qualified Domestic Relations Order or QDRO is a legal tool used to divide retirement accounts. While most people know certain family law terms like “ community property” and “ visitation“, even if they haven’t been involved in a divorce, they generally haven’t heard the acronym “QDRO” before. Home » Community Property » Qualified Domestic Relations Orders (QDRO)
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