Helping Our Clients Maintain Financial Security After Divorce
Even if you and your spouse agree to a 50/50 split of marital assets during your divorce, retirement accounts like 403(b)s and 401(k)s are not automatically subject to the same division. A common solution to this problem is to seek a court order for a Qualified Domestic Relations Order, or QDRO.
Unfortunately, one mistake or omission in a QDRO can have serious financial consequences for both parties, so it is important to discuss retirement asset division in consultation with a knowledgeable divorce attorney. Greenwood Law has extensive experience handling all aspects of divorce proceedings, and we are committed to helping our clients ensure that all assets are divided fairly — now and in the future. Our team of caring, compassionate attorneys are committed to protecting the financial security of you and your family.
What is a Qualified Domestic Relations Order?
A Qualified Domestic Relations Order, or QDRO, is court-issued documentation that establishes the rights of a spouse, former spouse, child, or other dependent to receive benefits from a retirement plan. A QDRO can be used to allocate assets such as retirement benefits, life insurance policies, and pension plans. It can also be used to establish child support or alimony payments from a retirement plan.
One of the primary advantages of a QDRO is that it allows the account administrator to efficiently distribute the retirement funds without subjecting you or your former spouse to tax penalties. With that being said, a QDRO is not a one-size-fits-all solution. We understand that each divorce is unique, and we will take the time to understand your goals and work to achieve the best possible outcome. If a QDRO is appropriate for your circumstance, we will help you navigate the process of obtaining a court order to initiate the QDRO.
Do I Need a QDRO?
Retirement accounts are considered to be marital property, which means that they are subject to division during the divorce process. If you and your spouse have any retirement accounts that were accumulated during your marriage, you may want to speak to your attorney about filing for a QDRO.
It is important to note, however, that not all retirement accounts are subject to QDROs. Typically, QDROs are used to divide pension plans, 401(k) plans, and other types of qualified retirement accounts. Greenwood Law attorneys have a deep understanding of QDROs and the laws governing retirement account division in North Carolina. If you are going through the divorce process or have previously finalized a divorce, our divorce attorneys can help you determine whether or not you and your ex-spouse are eligible for a QDRO.
Comprehensive Divorce Representation in All Aspects of the Divorce Process
The Winston-Salem divorce attorneys at Greenwood Law provide comprehensive representation in all aspects of the divorce process, including child custody, spousal support, property division, and more. Our team is committed to helping you navigate the divorce process and ensure that your rights and assets are protected every step of the way.
Contact Greenwood Law today at 336-398-3072 or contact us online to arrange a consultation with a knowledgeable North Carolina divorce attorney. A consult fee is charged for family law and immigration law.