If you have retirement assets and you're getting divorced, you've probably heard the term QDRO. A QDRO, short for Qualified Domestic Relations Order, is the order that divides your retirement asset and transfers it to your ex-spouse. The type of retirement asset determines what type of QDRO or order you will need. Typically, QDROs are not thought of until the divorce is done and over, and that becomes an issue because not all retirement assets are divisible by QDRO. Below is some basic information about how different retirement assets are dealt with in a divorce and the fixed fee I charge for the preparation of each QDRO or order.
401(k) -- $800
- Divided by QDRO
- Monies can be taken out by the Alternate Payee (ex-spouse) without incurring an additional penalty if done correctly.
Pension -- $800
- Divided by QDRO
- The Pension Plan controls on whether or not funds are immediately available
IRA -- $750
- Generally is divided by the holding company based on the holding company's procedures, a QDRO or post-decree order may be necessary.
- Taxes and penalties will be due on any monies disbursed early.
Military Retirement Benefits -- $900
- Generally cannot be divided by QDRO.
- Special orders are needed to require the military spouse to pay the non-military spouse.
- If the marriage and years of service meet certain requirements, the military spouse can request that the non-military spouse receive payment directly from the military.
Military Thrift Savings Plan -- $700
- Special language is needed in a Decree or post-decree order to effectuate the transfer.
Railroad -- $900
- Special language is needed in a Decree or post-decree order to effectuate the transfer.
Government Pensions -- $1,000
- Generally cannot be divided by QDRO.
- Special orders are needed to require the spouse to pay the other spouse over time.