Don’t Miss Out On Retirement Benefits With A QDRO
A retirement plan is often the most substantial asset in a marriage. Nevertheless, spouses often overlook retirement plans during a divorce. However, if you’re going through a divorce and fail to get the appropriate court order, you’re neglecting a significant portion of your marital assets. A qualified domestic relations order (QDRO) is a court order for a retirement plan to pay alimony, child support, or marital property rights to a child, spouse, former spouse, or other dependents. In a QDRO, the individual who earned retirement benefits is referred to as the “participant.” The person designated to get a portion of the benefit is called the “alternate payee.” The alternate payee can receive benefits whether the participant is alive or deceased. However, to receive retirement benefits from a former spouse, federal law states that there must be a QDRO. A state-issued divorce decree is not enough, even if the divorce decree states that retirement benefits should be divided. QDROs are usually prepared during divorce proceedings, but they can be filed years after a divorce as well. However, if you choose to file the QDRO later and the participant retires before the QDRO is filed, the retiree will start receiving benefits. The alternate payee will not receive back payments. They will only receive benefits after the QDRO is filed. When you need assistance with a qualified domestic relations order service in Philadelphia, PA contact People's Justice LLC with 855-577-7673.
Consider These Points
Many spouses going through a divorce choose to hire a lawyer for qualified domestic relations order service. However, preparing your own QDRO is possible. The first thing you should do is reach out to the company issuing the retirement plan and see what information should be included in the QDRO. Though necessary information varies slightly by the company, there are a few basics that must be included in all QDROs.
- The full legal names and last known mailing addresses of the participant and the alternate payee
- The name of each retirement plan to which the order applies
- The dollar amount or percentage (or method for determining the amount or percentage) of the benefit to be paid to the alternate payee
- The number of payments or time frame for which the order applies.
Once you have completed a draft of the order, submit it to the retirement plan immediately. And keep in mind that a domestic relations order becomes “qualified” only once it has been approved by the retirement plan sponsored by a private employer. If the plan accepts it, no additional steps are required. If it is rejected, the retirement plan needs to provide a clear explanation as to why it was denied. They should also give information on what you should do to improve the document so that the plan can accept it. When you require help with qualified domestic relations order service in Philadelphia, PA, be sure to give us a call at 855-577-7673.
Get In Touch With Us Today
If you live in the area, and need qualified domestic relations order service in Philadelphia, PA, reach out to People's Justice LLC at 855-577-7673. Bear in mind that retirement plans are obligated to provide QDRO-related information to all people who may be entitled to benefits, so feel free to reach out to them as well.