Qualified Domestic Relations Order
In most of the states in the United States, the retirement benefits of an individual are considered to be community QDRO attorney property. This means that they should be divided between the husband and the wife in the event of a divorce. Some of the retirement benefits falling under this category are Employee Stock Option Plans, military pension, IRAs, ERISA funds, 401k, 403k plans, etc…. However, some retirement benefits like Worker’s compensation disability awards, compensation for military injuries, social security payment and railroad retirement benefits are not considered as community properties.
Irrespective of the longevity of married life, it is essential that the retirement benefits should be discussed between the man and woman and should be settled on a mutual basis. For instance, the marital settlement agreements, judgement and the petition should be provided either for the division of retirement benefits or the spouse’s waiver of such benefits. An individual can waive the retirement benefits only if his/her share is worth very little.
When the income earning spouse decides to divide the retirement account, he/she must make sure that they do not lose any tax benefits. Here, a QDRO lawyer will be needed for transferring a portion of retirement funds from the 401k divorce account of one spouse to the account of his/her spouse.
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