Answers You Need For Your Questions About QDROs
Qualified domestic relations orders, or QDROs, are immensely complicated. At Leblanc Legal, LLC, I have handled hundreds of divorces and QDROs for people who needed to divide their retirement assets.
My name is Lynda LeBlanc. If you are going through a divorce in Indiana and are interested in a QDRO, you can read the information on this page to learn a little bit more about them and how they work.
What is a qualified domestic relations order?
A QDRO is a type of court order that addresses how a couple will divide employer-sponsored retirement plans in a divorce. It stipulates that a predefined portion of the retirement assets will go to the alternate payee or the spouse whose name is not on the retirement plan.
Which retirement plans can I divide using a QDRO?
You can use QDROs for 403(b)s, individual retirement accounts (IRAs), 401(k)s and other qualified plans.
Why should I use a QDRO?
Many people choose to use QDROs because they are very efficient and they do not have a tax penalty for the funds withdrawn. With a QDRO, there is little to no dispute over the amount of assets that will be transferred to the other spouse. The paying spouse will not have to pay any taxes on the assets that they remove.
Are there drawbacks to a QDRO?
However, QDROs can also have downsides. They apply only to the existing retirement benefits in a plan, not any new benefits added in the future. If the funds in a retirement account have already been promised to another alternate payee – say, a first spouse – then they cannot be transferred to another alternate payee.
Why should I hire a lawyer?
The administrative process surrounding QDROs is very complicated. Even a small mistake on the paperwork can end up costing you more time and money than if you hired a divorce attorney the first time around. It is also wise to have an attorney to uphold your rights so your ex does not take advantage of you or you do not lose out on the financial arrangement you deserve.
Ask Whether A QDRO Is Right For You – FREE Consults
I am prepared to explore your options when it comes to dividing retirement assets in a divorce. To request a free 30-minute phone consultation with me, please call my Merrillville office at 219-733-8556 or send me an email today.