For “Silver Divorces,” a Reverse Mortgage Could Be a Solution
Marital Property Division and Retirement Plans
How Are Retirement Plans Divided in a Divorce Case?
One of the largest assets to be divided between divorcing spouses [both genders] is often the retirement plans/ benefits or one or both spouses. Judges may order that the “marital” portion of such retirement benefits be divided between the divorcing spouses and paid, even years in the future.
Divorce, Retirement Plans, and Qualified Domestic Relations Orders (QDROs)
A Qualified Domestic Relations Order (QDRO) is an order that designates that a divorced spouse is to receive all or a portion of the retirement benefits of the participant spouse payable under a qualified retirement plan. In other words, under a QDRO, when a spouse’s eligible retirement benefits begin to be paid in the future, the payment is divided and paid as the Court orders and payments are sent to each spouse in the amounts or portions designated in the QDRO.
A QDRO applies to the retirement benefits of private persons and employers. Congress has enacted laws that provide for the division by a state domestic relations order of federal retirement and pension benefits such as civil service or military retirement benefits.
The division of retirement plans & benefits may have significant tax ramifications that should be identified before a QDRO is entered.
Even if divorcing spouses settle their marital issues, the division of marital retirement benefits must be implemented by the entry of a QDRO. Frequently when granting a divorce, the Court “reserves” jurisdiction to enter a QDRO in the future.
If retirement assets were accrued during your marriage by you or your spouse [either gender] and identification, valuation and division of those benefits are required, be certain to contact an experienced family law attorney at the Coover Law Firm today. A caring and knowledgeable Coover Law Firm family law attorney can help you navigate all of the potential complications of a property settlement incident to separation and divorce.
If you are contemplating divorce and need help understanding your rights and responsibilities, seek out a compassionate and knowledgeable Howard County MD divorce lawyer, such as Fred L. Coover, Esq. of Coover Law Firm, LLC. To schedule a free consultation regarding your specific family law matter at our Columbia MD office, call us today at (410) 995-1100.
Disclaimer: The information in this blog post is provided for general educational & informational purposes only. It is not intended to convey legal advice or serve as a substitute for legal counsel on any subject matter.
Coover Law Firm, LLC serves clients in Howard County, Maryland and beyond, including Columbia MD, Ellicott City MD, Clarksville MD, Laurel MD, Fulton MD, Glenelg MD, Glenwood MD, Woodbine MD, Sykesville MD, Elkridge MD and more.
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