People who divorce and have been putting money aside in a 401(k) plan through their employment may be surprised to learn that dividing these familiar retirement saving accounts can be very challenging. Division of these instruments requires the creation of a qualified domestic relations order, or QDRO. QDROs have a minimum of 11 legal requirements.

Many lawyers refuse to do QDROs because they are difficult, and cause attorneys to run the risk of liability if their calculations turn out to be wrong. Christian D. Smed, P.A., is experienced in the world of QDROs, and he has never made these common, and very expensive, mistakes.

Another complicating factor with QDROs is separating premarital retirement savings from marital savings. If you worked at your job prior to marrying, some of your savings will be classified as separate, and some as marital.

Advanced Division Of Retirement Savings Requirements

The rules underlying 401(k)s require that penalties be paid if cased prior to actual retirement. So 401(k) owners must negotiate problems of fees and taxation, and it must be done right the first time.

QDROs don't just apply to 401(k)s. They are also required with other retirement plans: other corporate pension plans such as 403(b) and 457, defined-benefit monthly payment plans, military retirement savings, and federal and state employee plans. Certain kinds of IRAs may also be divided by comparable court orders.

If you have any of these retirement plans, you should sit with a qualified QDRO attorney and discuss what is required.

Contact the Orlando, Florida, QDRO lawyers at Christian D. Smed, P.A., in Winter Park at 407-901-4750.

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