How are retirement funds divided?
Distribution of retirement funds requires special attention so that the tax advantages associated with such funds will not be inadvertently lost. If a retirement fund has to be distrusted it is recommended that you consult with an attorney. In these cases a Qualified Domestic Relations Order, or QDRO, is required. A QDRO is a document which transfers a share of retirement funds from the spouse participating in the retirement plan to the nonparticipating spouse. A QDRO is intended to transfer the agreed upon portion of the fund to the nonparticipating spouse while protecting the tax benefits which make these funds such attractive investments.
Distribution of retirement funds requires special attention so that the tax advantages associated with such funds will not be inadvertently lost. A Qualified Domestic Relations Order, or QDRO, is a document that transfers a share of retirement funds from the spouse participating in the retirement plan to the nonparticipating spouse. A QDRO is intended to transfer the agreed upon portion of the fund to the nonparticipating spouse while protecting the tax benefits which make these funds such attractive investments. Typically, QDROs are drafted after the divorce has been concluded. The QDRO must be approved by the fund administrator, signed by the parties, and entered by the Court as an order. The order is then registered with the plan administrator. If your situation requires a distribution of assets through a QDRO, contact the pension or retirement plan administrator for plan requirements and forms. Most administrators have these forms available for their members, and they are happy to
