Qualified Domestic Relations Order Services
When negotiating a property settlement, a QDRO (qualified domestic relations order) will likely be an important consideration. If either client has a retirement account or pension plan that they have contributed to over the course of their marriage, then a QDRO will be the legal judgment that dictates that the plan must begin paying a portion of the benefits to the designated payee (i.e., the employee’s former spouse) upon the employee’s retirement. In addition to ordering plans to pay benefits to a new payee, a QDRO also ensures that neither party is disproportionately impacted by taxes by allocating taxes either at the time of settlement or after.
To help you navigate the complexities of a Maryland QDRO, you’ll need an experienced certified divorce financial analyst by your side. Because a qualified domestic relations order is such an important document during divorce proceedings, it should be prepared by a knowledgeable and experienced divorce attorney. A CDFA will be able to assist your legal team by adding the financial expertise required to compliment the prepared Order. What sets Maryland QDRO Solutions Group apart from the rest is that we work with the Alternate Payee to assure that the retirement funds land exactly where they are supposed to, such as to an IRA, 401(k) and other defined contribution plans, for example. In other words, we offer our guidance from the beginning all the way through to the end of the process.
At Divorce Financial Solutions, we offer QDRO services to clients in Garrett County, Carroll County, Montgomery County, Howard County, Frederick County, and Washington County. Our CDFA, Veralynn Morris, has extensive experience in financial planning, investments, and QDROs. Our CDFA, Veralynn Morris, has extensive experience in financial planning, investments, and QDROs. In fact, Veralynn is a qualified expert witness in the area of QDRO and retirement plans.
Why types of retirement accounts are governed by QDROs?
A QDRO oversees all types of retirement accounts, from employee-sponsored pension plans to a 401(k) and 403(b) to TIAA/CREFs. In addition, State and Federal civil severance plans, IRAs, and military retirement pay are governed by similar Orders.
Why do I need to obtain a QDRO before my spouse has started receiving benefits?
Though it may seem to make sense to delay pursuing a QDRO until your ex begins receiving their benefits, this is a mistake that could cost you the right to your portion of their benefits. If your ex experiences certain life events before you obtain a QDRO then you may lose all of your rights to receive benefits from their plan. These life events include:
- Quitting/getting fired
You should always pursue a QDRO expediently during your divorce proceedings in order to ensure that you receive the benefits to which you are entitled.