My husband's attorney is proposing that his retirement plan be divided other than straight down the middle. Why do some retirements have to be divided differently?

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Divorce and other Legal topics.

My husband’s attorney is proposing that his retirement plan be divided other than straight down the middle. Why do some retirements have to be divide

My husband's attorney is proposing that his retirement plan be divided other than straight down the middle. Why do some retirements have to be divided differently?

The laws of the federal government prevail over most retirement plans. There are usually laws set up which allow the plans to receive special tax treatment, allowing contributions to go to the plan to be made before taxes are paid and also allowing the income on the money in the plan to build up without current tax consequences.

Upon a divorce, these types of retirement plans must be divided by a special order called a “Qualified Domestic Relations Order” or QDRO. This order will determine how much of each payment should go to the spouse.

Be sure your divorce attorney is aware of how contributions are made to the plan so that he/she can adequately protect your rights with regard to what share of his retirement you're entitled to.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Legal Tip Site? Request a Tip Now!


Guru Spotlight
Candi Wingate