When you’re facing divorce, there’s uncertainty and stress about the future. It can be hard to keep track of every aspect of the process, which is why it’s so important to work with an experienced attorney to handle the dissolution of your marriage.
Understanding qualified domestic relationship orders (QDROs) can give you insight into the process and peace of mind about dividing assets from the marriage. While a family court in Michigan equitably dissolves most marital property, a QDRO addresses the more complicated assets that impact your long-term financial security after you leave the workforce.
A QDRO is drafted after a court order to use retirement accounts to pay:
The QDRO is an essential part of the equitable division of property. In family court, equitable doesn’t necessarily mean assets are divided into two equal portions. Instead, it takes into account the property brought into the marriage, the salaries of both individuals, savings, and any support provided during the relationship.
A QDRO describes what will happen to retirement accounts while considering the following:
Retirement accounts can only be divided with a QDRO, which takes a specialist to draft.
Not every divorce involves an individual’s retirement accounts. In situations where neither spouse has substantial savings or uncontested divorces, pensions and 401(k)s may not come into the division of property.
When one spouse has significant retirement benefits they need to pay alimony or child support, a QDRO enables the account manager to access the funds and avoid tax consequences for early withdrawal.
For the most part, clients don’t have to get their QDRO during a divorce. Your attorney most likely already has a relationship with a QDRO firm and, following a judgment in your case, will be able to get the appropriate document.
It’s not uncommon for retirement accounts not to be included in a divorce settlement and then one spouse to later decide they want access to the benefits. As a general rule, it’s better to address all marital property in the divorce settlement to avoid one spouse later reopening the case.
Wanting to get a divorce over as fast as possible to minimize the emotional toll and stress is normal. However, avoiding dealing with certain assets can end up prolonging the experience.
Get a QDRO as early as possible to file with the court. You can incorporate the document into the settlement as early as you like, and being proactive about the division of your retirement accounts may even save you time and stress down the road.
I come from years of experience in both family law and QDRO drafting. Following the coronavirus pandemic, I launched my own firm to provide Michigan family attorneys with high-quality documents pursuant to judgments. Bringing a full understanding of pension plan complexities and Michigan family lawn, I’m able to draft accurate, fast documents for my clients.
As a virtual legal service, I work to meet the needs of my clients, including nights and weekends. The reputation I’ve built is one of being a responsive and dedicated problem solver. My priority is building longstanding relationships with attorneys to deliver QDROs that meet the demands of even the most complicated financial situations.
