A Qualified Domestic Relations Order (QDRO) is a legal document that is used to divide retirement assets between spouses during a divorce. A QDRO can be used for both public and private retirement plans, such as 401(k)s, pensions, and IRAs. If you are going through a divorce, it is important to have an experienced attorney on your side who can help you understand your rights and options.
Our firm has extensive experience handling complex divorces and property division cases. We will work closely with you to make sure that your interests are protected every step of the way.
Can a QDRO Affect a Retirement Plan?
A QDRO can have an impact on a retirement plan, but it is important to understand how and why this may happen. QDRO is a court order that recognizes the existence of an alternate payee’s right to receive all or part of the benefits payable under a retirement plan. The order must meet certain requirements to be “qualified.”
The funds in a retirement plan can be affected by a QDRO in a few different ways. One of the most common ways is that the funds can be transferred from the account of the plan sponsor to the account of the alternate payee. This transfer can happen either through direct payment or by means of a rollover. In some cases, the order may also require the plan sponsor to make payments to the alternate payee on a regular basis. Finally, a QDRO may also affect how distributions from the plan are made. Generally, distributions will be made to the alternate payee first, and then to any other beneficiaries.
How Long Does It Take to Receive Funds from a QDRO?
The time frame for receiving funds from a QDRO can vary depending on the type of retirement plan involved. For example, if you have a 401(k) plan, the process may take a few weeks. If you have an IRA, the process may take a bit longer. In any case, it is important to work with an experienced attorney who can help ensure that the process goes as smoothly as possible.
If you are going through a divorce and need help dividing your assets, our firm can help. We will work closely with you to make sure that your rights are protected every step of the way. Contact our office today to schedule a consultation.
When Should I Hire a Lawyer?
The sooner you contact a lawyer, the better. An experienced lawyer may be able to assist you in determining your rights and alternatives. You may miss crucial deadlines or make other mistakes that might have a detrimental impact on your case if you wait too long.
If you are going through a divorce, contact our office today at (508) 571-5452 to schedule a consultation with an experienced attorney. An initial consultation is always free and there is no obligation to hire us. We represent clients in Worcester and the greater commonwealth area.