Qualified Domestic Relations Order (QDRO)
Seek Assistance from Dedicated Retirement Asset Division Lawyers in Fairfax
Retirement interests (and determining what you and your spouse are entitled to in each other’s respective retirement accounts) are often a significant issue in divorce settlements. Retirement interests are governed by state and federal laws and can be a complicated asset to divide. Your attorney can help you identify what interest you may be entitled to and how to accomplish the transfer of that interest in the most beneficial (and simplest) way.
Contact Keithley Law, PLLC today to find out how we can help you handle complex financial matters.
Understanding Your Options for Your Type of Retirement Account
Most retirement accounts fall into two main types. A defined contribution plan where the employee (and possibly employer) contribute a monthly amount into a qualified plan (like IRAs, 401(K)s, or TSPs). A defined benefit plan is pension that the employee accrues an interest to be paid monthly on retirement according to time invested in the employment and some set formula (like FERS, CSRS, or VRS). Each retirement plan has complicated rules and procedures addressing division on divorce, so understanding the asset and working with an attorney to protect your interest will be an important component of your divorce.
Even if you and your spouse agree on how retirement assets should be divided, you will typically need your attorney to prepare a Court Order to accomplish the transfer. This is typically done at the time of divorce, or shortly afterward. A “Qualified Domestic Relations Order,” or “QDRO” for short, or “Court Order Acceptable for Processing,” or “COAP” for short, directs the retirement plan administrator of the account to divide the asset in accordance with your agreement or the Court’s ruling. Seeking an attorney experienced with retirement assets division will be an important piece of your financial plan as move forward after the divorce, as even small wording issues can make a huge difference.
The attorneys at Keithley Law, PLLC can help you understand these, and other issues in your family law case. Do not hesitate to reach out to us today at (703) 454-5147 for representation.