Division of Retirement Benefits
Aside from equity in the parties' home, the biggest asset many divorcing couples have are their retirement benefits.
If a person has been working at Ford, GE, etc. for 20 years, he or she will likely have accumulated a fairly sizeable amount of money in their pension, retirement plan, defined benefit plan, employee stock ownership plan (ESOP), defined contribution plan, savings and security plan, 401(k), annuity, etc.
How much of the retirement is marital?
Marriage during all or part of the employee's tenure likely will make some or all of these retirement funds marital in nature. Portions of the funds may be non-marital. Our family law attorneys at Waters, Tyler, Scott, Hofmann & Doane, LLC can explain to you what portion, if any, of your retirement or your spouse's retirement should be considered as marital.
Are retirement benefits exempt?
Certain retirement benefits may be exempt from division as a marital asset. Again, our family law attorneys can discuss this with you in greater detail.
How are the retirement benefits distributed?
After settlement is reached or a decision is obtained from the Court, it may be necessary for one of the parties' attorneys to draft a Qualified Domestic Relations Order (QDRO), which must be approved by the opposing party, then by the employer's Retirement Plan Administrator and finally, submitted to the Court for approval as an official order. A certified copy of the QDRO then needs to be delivered to the Plan Administrator for implementation and distribution of the benefits to the other party.
Properly drafting a QDRO is a very tricky task and should only be undertaken by a fully qualified family law attorney. The QDRO usually cannot be finalized until after the Court grants the divorce and dissolves the marriage.
You deserve a divorce attorney with the knowledge and experience to protect your interests. Contact the family law attorneys at Waters, Tyler, Scott, Hofmann & Doane -- (812) 949-1114. Weekend and evening appointments available; major credit cards accepted.
