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Tag: Retirement

Tag: Retirement

What is a Qualified Domestic Relations Order (QDRO)?

When it comes to property division in a divorce, there are often retirement or pension plans that are on the table to be split between the divorcing spouses. Splitting a qualified retirement plan or pension plan in a divorce requires the preparation of a QDRO (qualified domestic relations order). A QDRO allows for the division of qualified plan assets in a tax-deferred manner for the receiving spouse, and provides that spouse with 60 days in which to roll it over into an IRA without penalty. If you want to take some money out for divorce expenses, you can make a
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Understand the Rules About Divorce and Social Security

According to the Social Security Administration, women receive 24% less in Social Security benefits than men do, the result of women typically having spent fewer years in the workforce and earning less than their male counterparts. In addition to having a lower benefit, women also depend more on Social Security for their living expenses.  The SSA reports that women depend on Social Security for 51% of their total income, while men count on Social Security for only 36% of their income. Whether you are male or female, it is important for you to understand the rules for Social Security benefits
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Tips for Getting Your Retirement Plan Back on Track After a Divorce

Retirement accounts are typically one of the major assets married couples have. These accounts are considered marital property if they were acquired during the marriage. Couples who divorce as they are nearing retirement need to consider the long-term worth of each asset; trading away retirement assets in order to keep the house may be a sentimental choice but could end up being a foolish financial decision. Splitting a 401(k) or other qualified retirement plan requires the preparation of a QDRO (qualified domestic relations order). This order allows for the division of qualified plan assets in a tax-deferred manner for the
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What is a Qualified Domestic Relations Order?

To divide many types of retirement accounts in a divorce, federal law requires that special court orders called Qualified Domestic Relations Orders be submitted and approved by the court. This order, referred to as a QDRO, provides instructions to a retirement plan administrator on how to divide funds from a retirement account after a divorce becomes final. Obtaining a QDRO is often a necessary and critical step in the divorce process. What types of retirement accounts need a QDRO to be divided? The most common types of retirement accounts that require a QDRO are 401(k)s, 403(b)s, pension plans, and federal
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Divorce and Retirement Accounts

[column width=”1/1″ last=”true” title=”” title_type=”single” animation=”none” implicit=”true”] Retirement accounts are often one of the most valuable marital assets to be divided in a divorce. Regardless of whose name is on the account, retirement funds that accrued during the marriage may be divided in a divorce “Retirement accounts” encompass a variety of accounts – individual retirement accounts (IRAs), 401(k) plans, 403(b) plans, Railroad Retirement Board Annuities, Thrift Savings Plans, Military Retired Pay or Pensions. They can be provided through your (or your spouse’s) current place of employment, former employment, or individually obtained. They can be vested or unvested. These assets will
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Social Security Benefits and Divorce

[column width=”1/1″ last=”true” title=”” title_type=”single” animation=”none” implicit=”true”] If your marriage lasted 10 years or more, and you are now divorcing, you may be able to receive Social Security benefits on your soon-to-be former spouse’s record (or vice versa). In order to receive these benefits on your former spouse’s record, the following criteria must be met: You must be unmarried. At the time your former spouse is eligible to receive Social Security benefits, you must be unmarried to receive your portion. If your former spouse has remarried, your ability to receive benefits on your former spouse’s record will be unaffected. If
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