Working to make York, Lancaster, and Chester Counties asset transfers swift and efficient
Determining a fair division of retirement accounts can be a difficult task to undertake during the divorce process. Often there are multiple steps to complete the transfer of assets, which sometimes includes executing a QDRO.
As the former General Counsel for American Pensions, Inc., I have an extensive background in handling QDROs, and ensuring DoL and IRS compliance. Whether you have a substantial, personal retirement account, or are dealing with a divorce that could affect the valuation of your business assets, my particular experience will be beneficial to you. Contact Holland Law in Fort Mill or Rock Hill today to learn more about these services.
What is a QDRO, and how does it work?
QDRO stands for Qualified Domestic Relations Order. It's a court order which grants permission to access particular retirement funds or pension plans belonging to one party when the other party was awarded a portion. QDROs are not automatically issued, so it's important that your divorce attorney have a complete understanding of the assets owned by both parties. These assets can be used to satisfy equitable distribution, or to meet child support or alimony obligations.
Every employer has different requirements and procedures for processing a QDRO, but they all require some of the same basic information: names, addresses, and other personal data, as well as the date of your marriage and the expected date of your divorce, etc. Understand that if errors occur during the approval process, the transfer of funds will inevitably be delayed.
How is a QDRO paid out?
Once a QDRO is approved, the retirement account funds can be separated, withdrawn, and deposited into the retirement account of the alternate payee (spouse receiving a share of the plan). The alternate payee may roll over his or her share tax-free without penalty, to an IRA. The alternate payee can take distribution in cash; however, this distribution will be treated as ordinary income and will be taxed.
Experience that will save Fort Mill and Rock Hill clients time and money
There are several complications that can arise when going through the process of obtaining access to a retirement account by court order. I know how to avoid them because I've worked both sides of the procedure.
QDROs can be complex, and few family law attorneys can offer the same type and depth of experience that I can. I “speak” the language of these accounts and of the people who create them, and am able to avoid the types of common errors that can lead to an order being delayed or denied. Delays can be deadly when dealing with retirement plan transfers. If the market is strong when the transfer is initiated, but the QDRO gets held up for months because of avoidable errors, it can result in a substantial financial loss for you.
Once you finally have an order to divide retirement plan assets, many attorneys hire an outside company, at added expense to you, to handle the drafting and administration of the QDRO. When you work with Holland Law, everything stays in-house, streamlining the process and leading to significant savings, in time and money, for you.
Helping Fort Mill and Rock Hill clients finalize financial matters beyond divorce
Dividing retirement accounts is a necessary part of divorce. My background with complex retirement plans provides me the ability to offer a more personalized level of service to my clients. Holland Law can make the process as seamless as possible for clients in York, Lancaster, or Chester County during a stressful time. For legal guidance you can count on, schedule your consultation in either my Fort Mill office on Gold Hill Road, or in my Rock Hill office on Oakland Avenue, call 803-590-6725, or feel free to reach out to me through my contact page.