March 8

Avoiding Common QDRO Mistakes During Divorce Proceedings

As you work through divorce proceedings, it can be a challenging time where there are many complex legal issues to navigate. One of the most critical aspects must be addressed by dividing up retirement accounts – which often involves reaching a Qualified Domestic Relations Order (QDRO). Unfortunately, mistakes made with QDROs can cause significant financial setbacks and put your future retirement security at risk. Therefore, it’s essential to understand what steps need to be taken when creating a QDRO so you can avoid common errors this process presents.

What is a QRDO? How does it work?

A Qualified Domestic Relations Order (QDRO) is a legal document that directs a pension fund to divide retirement assets between two parties. It’s typically used in divorces or child support cases so that it’s fair for both spouses or parents. Setting up a QDRO begins with both parties agreeing to the split through their court-ordered divorce settlement or through agreement and appropriate court action. All relevant background information, such as tax documents and account ownership, will be gathered. Then, the QDRO specialty attorney will draft and file the order with the Court. After this is done, copies are offered to all involved parties and may need to be sent to the relevant plan administrator, depending on the case. Once received by all, the QDRO officially takes effect, and any splitting of assets can then legally commence.

What can I do to prepare for a QDRO?

Finding yourself in an unfamiliar situation and being unsure of specific rules that apply to your particular circumstance can be frustrating. Knowing this information often forms the basis of successful outcomes! Getting familiar with the specific rules and regulations is vital to best prepare yourself for any situation. Researching Nevada laws and policies, or even looking into those that govern all states, are great ways to ensure proper procedures and safety. In addition, taking the time to get familiar with the appropriate rules before they become an issue can save much frustration in the future.

Why should I have an attorney perform my QDRO?

If you’re contemplating dividing a retirement account through the QDRO process, it pays to talk to an attorney specializing in this field. You should be able to rest assured that you are getting the proper advice since dealing with your future security is too important to get wrong. A specialist attorney can provide invaluable information about how the termination of rights should be handled and any other issues that may arise. Plus, because they have experience in these types of funds and laws, they can save you time by guiding you on the best way to distribute or transfer accounts so that all parties are adequately compensated while risks are minimized.

Richard P. Davies and his team are here to help you with all your divorce needs in Nevada, including QDRO agreements. Call (775) 360-6894 today to schedule your free consultation.


Tags

divorce, nevada, QRDO, qualified domestic relations order


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