What is a Qualified Domestic Relations Order?

If you have recently filed for divorce and are concerned about division of property or assets, you are not alone. This is one of the most common issues brought to a Coral Gables divorce attorney. The order behind the division of assets is also known as a qualified domestic relations order (QDRO). Read more about QDROs here.

Visit here to read more about the division of property and assets with a Coral Gables divorce attorney.

How Retirement Accounts Are Divided in a Divorce

In the event that there are retirement benefits that have accumulated over the course of the marriage, a judge may divide these benefits in the final divorce decree. This decree alone, however, is not enough to warrant the retirement plan company to give an alternate payee access to funds. This is where a QDRO comes in… This gives an alternate payee access to funds that have been stipulated by a divorce court.

How a QDRO Protects You

Without a QDRO, there is no guarantee that you will actually receive access to funds promised to you during the divorce. You need to be clear about having these materials in order before the divorce is finalized so that you are confident  about the future. Having the rug pulled out from under you down the line when you don’t have access to funds you were counting on can be devastating, so you should do everything in your power to avoid this situation.

Learn more about the FAQS of QDROs here.

Why is a QDRO Required? Isn’t the Decree Enough?

It is imperative that you understand how a qualified domestic relations order is necessary. There are more than 100,000 retirement plans across the country. Some have formal qualified domestic relations order procedures and others do not.

Plan Administrator Approval is Not Only Suggested, but Mandatory

One of the most important things you need to know is that the qualified domestic relations order is NOT active until it has been accepted by the plan administrator as well as the judge. Speaking with a Coral Gables divorce attorney who is knowledgeable about qualified domestic relations orders and understands how the wording of such orders can impact your future significantly can make all the difference in your financial future long after your divorce is final. Each plan may have individual requirements that need to be met with regards to submission.

Little Mistakes Can Mean Big Problems…

Small mistakes in a qualified domestic relations order could lead to big problems down the line. If you discover them later, then it may be too late or too difficult to change them. As an example, if your qualified domestic relations order does not stipulate what will happen if the plan participant’s spouse passes away before you receive benefits, then you may lose out on vital funds to which you would have otherwise been entitled. Ensuring that your QDRO is drafted correctly and appropriately from the beginning will help avoid big problems later.

Speak with a Coral Gables Divorce Attorney

A Coral Gables divorce attorney who is familiar and experienced with the division of property and assets during a divorce should also be familiar with the QDRO process. Do not hesitate to ask your attorney more about this. Having a properly written QDRO is the first step towards protecting what may be one of the biggest assets in your divorce.

Whether or not you will be getting these benefits right away or down the line, it goes without saying how important it is to protect your interests by sharing these concerns with your attorney and by having a properly written QDRO.

Visit here to get started with a Coral Gables divorce attorney today.