The division of the retirement plan is undeniably one of the first things that come to mind in a divorce. It’s only normal to raise a lot of questions regarding a couple’s retirement accounts considering the years spent working for this “future nest egg.” But a retirement plan is so much more than that. To couples going through a divorce, the retirement plan is now “the money for tomorrow’s bill payments,” according to an article from Kaspar & Lugay.
Perhaps you’ve already heard of QDRO. It stands for Qualified Domestic Relations Order. It’s basically a court order that is referred to and used in matters concerning the division of retirement plans. The QDRO is extremely important because if filed properly, it will allow the person not contributing financially or paying into the plan to still get a fraction of the retirement plan when the divorce takes effect. One thing you have to remember about the QDRO though is that this form doesn’t guarantee that you will receive money immediately if your ex-spouse is yet to retire. What the QDRO does instead is that it “reserves a fair share of the investment portfolio in your name for when retirement commences,” according to expert divorce and family law firm Kaspar & Lugay. The best thing to do is to consult with your family law attorney regarding this step.
One more thing you need to bear in mind when dealing with the process of splitting retirement accounts is having a clear idea of which retirement accounts are on the line. It also helps to know the laws related to retirement accounts to better navigate your way through the entire process.
All this might seem overwhelming but you don’t have to go through the process alone. The first step is to seek professional legal representation and counsel from a family law attorney from Kaspar & Lugay who will walk you through the entire process.