Are you concerned about ensuring high-value retirement benefits are divided equally after a divorce? A QDRO is a court-ordered requirement to divide retirement benefits as part of a divorce settlement. This type of asset division is primarily a focus of ‘gray divorce’, a term used to describe divorce for individuals over the age of 50. Read on to find out more about the QDRO and when the best time to file is.
When Should I File A QDRO?
Technically you can file a QDRO at any time during or after the divorce process. However, logically, the sooner you file it the better. The quicker you file a QDRO, the sooner it can be qualified by the retirement plan where the benefits are held. Due to the complexities of filing a QDRO, it is recommended that you work with a qualified QDRO attorney like Adria S. Hillman for guidance throughout the process.
Are You Automatically Entitled To Retirement Benefits As Part Of A Divorce Settlement?
It is often the case in divorce law that both ex-spouses are entitled to an equal share of the retirement benefits earned over the course of their marriage. However, in order to be entitled to any benefits, the individual must also comply with a federal law known as the Employee Retirement Income Security Act (ERISA) of 1974, and the Internal Revenue Code (IRA) of 1986. ERISA sets basic standards for individuals involved in a pension plan, while IRA governs federal tax law.
These two laws stipulate that retirement assets can only be assigned if the judgment, order, or decree recognizing the former spouse’s interest involves a QDRO. You can also file a QDRO on behalf of other dependents, like children, with an interest in the retirement benefits. Without a QDRO you will not be able to have retirement benefits divided up after divorce proceedings.
Do I Need To Be Divorced To File A QDRO?
You do not need to have a ‘judgment of divorce’ to file a QDRO. A divorce settlement can also act as the basis for a QDRO if it meets the requirements of ERISA. In order to complete a QDRO an attorney must:
- Have all the details about the retirement plan and retirement benefits
- Review the details of the settlement plan to divide the assets
- Draft a domestic relations order (DRO) and send it to the retirement plan, and the ex-spouse’s attorney
- Once pre-approved by the retirement provider, send it to the court for signature and the ex-spouse’s attorney
- Get the order ‘qualified’ by the retirement plan, which moves it from a DRO to a QDRO.
The order must be qualified in order to receive any of the stipulated benefits.
How Long After A Divorce Can I File A QDRO?
Technically you can file a QDRO at any point after a divorce, but you should consider the following obstacles beforehand.
Proving You’re Entitled To Pension Information
After a divorce, you are legally no longer married. Your surname may change, documents might go missing, and it may be increasingly more difficult to prove your identity with the pension provider. Legally you are entitled to the information needed to draft a QDRO, but you may need to jump through extra verification steps before you receive the needed information.
Diminished Benefits
If a QDRO was never filed, and your assets already divided, the other ex-spouse may have started to draw from the pension early. This could mean that your retirement benefits are already significantly diminished at the time you begin to file your QDRO. Therefore, ensuring that your QDRO attorney files the documents as soon as possible could be vital for protecting finances drawn at pension age.
Complexities Over Time
Over time, your retirement benefits might increase. However, the separation draft may not be specific enough to clarify what you are entitled to years later. Any additional complexities combined with an uncooperative ex-spouse could lead to more obstacles, and even court time. The sooner you file a QDRO, the less complexities will arise in dividing up retirement benefits.
Get Help From An Experienced QDRO Attorney
Adria S. Hillman is an expert in divorce at an older age. We can help you navigate the complexities of a QDRO with ease. Reduce the negative impact of filing for a QDRO long after a divorce.
Contact us today for expert advice in ensuring you receive the retirement benefits you are entitled to today.
