We are a firm specializing in drafting very complex and specific Court Orders that divide all types of retirement plans for couples who are dividing their property as a result of a divorce or legally recognized separation. The primary goals of QDROs are to insure that the division of retirements is not taxable to either party, are consistent with applicable federal laws and reflect agreements of couples as to how they want to divide retirements or reflect the intent of the trial judge in contested cases.
There are many types of retirement plans which may be divided:
- 401Ks
- 403Bs
- Military Retirements
- Civil Service Retirement System (CSRS)
- Federal Employee Retirement Systems (FERS)
- Thrift Savings Plans
- IRAs
- Self-Employed Plans (SEPs)
- State and Local Government Retirement Plans
- Railroad Plans
- Defined Benefit Plans
For simplicity sake, we will refer to the Orders we draft as "QDRO's" (Qualified Domestic Relations Orders) although, depending on the type of retirement plan, they may be called by other names.
There are two reasons for QDRO's:
- AVOIDING TAXES: Under ordinary circumstances, if a person has a retirement plan and takes money out of the plan, taxes are going to have to be paid on the amount taken out. When an owner of a retirement plan agrees as part of a divorce settlement to transfer part of a retirement to his or her spouse or a state court orders the same in a contested case, a properly written QDRO will eliminate the requirement for the owner to pay taxes on the money transferred to the awarded spouse.
- THE SPOUSE TO WHOM THE TRANSFER IS MADE GETS HIS OR HER MONEY: Retirement plans are administered by plan administrators. Unless the plan administrator receives a properly drafted QDRO, they will not transfer the money.
QDRO Solutions works with attorneys who represent individuals in need of a Qualified Domestic Relations Order (QDRO) or with lay people who are no longer using the services of an attorney. Our firm drafts QDRO's nationally.
We also offer our services in assisting attorneys with the proper language to be included in an agreement or Court Order regarding the division of the retirement plan for their client which will be consistent with the retirement plan's regulations. Example: we received a Court Order which incorporated an agreement by the parties that a wife would get a one time lump sum cash payment from her former husband's state retirement. The state retirement plan does not allow such payments. We informed the lawyers of this unfortunate news. The lawyers faced telling their clients that they had to come up with another way to divide the marital estate which must have been unpleasant conversations. A phone call to QDRO Solutions would have avoided this quandary.
A QDRO requires extensive and complicated paperwork that should only be delegated to an experienced family law and QDRO attorney. Michael P. O'Connell is the owner of QDRO Solutions and an attorney with many years of experience in complex family law cases, as well as extensive knowledge regarding QDRO's. When you work with QDRO Solutions, you will not only receive thorough and professional assistance, but, also our undivided attention to you.
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