January 24

What is a Qualified Domestic Relations Order (QDRO)?

A Qualified Domestic Relations Order, more commonly known as a QDRO, is a judicial order issued by a state court pertaining to the distribution of assets and benefits of a retirement plan. Although it is not intended to replace a divorce or child custody proceeding, it can be a valuable step in financial planning for divorce. The QDRO is not limited to pension plans and can be used to divide other types of assets as well.

Qualified Domestic Relations Order in Reno, Nevada

A QDRO allows divorcing couples to keep an eye on their finances without needing to go through a lengthy and expensive court proceeding. Although it may take several months to set up a QDRO, it can be a great way to keep both spouses happy. It is a great way to ensure that money spent on a QDRO goes to a worthy cause. If a spouse can pay his or her share of the fee, that is the cheapest option.

Typically, a QDRO is drafted by a professional. This can be a lawyer, a financial advisor, or a company specializing in QDROs. Having an expert draft a QDRO is a wise move because it means that a legal expert can be involved from the beginning of the divorce proceedings. A QDRO will be more efficient. A lawyer can use their knowledge of tax laws to ensure that the retirement fund of a party is not a source for post-divorce conflict.

While the QDRO is certainly one of the most important parts of the financial planning process, it is only the tip of the iceberg. In addition to the QDRO, the court should consider granting spousal maintenance and spousal support to the divorcing couple. These are important to ensure a level playing field for all spouses and protect the assets of the less wealthy. When a divorce is finalized, the most valuable assets of a marriage are typically divided.

A government retirement plan, unlike an individual retirement account, is not automatically considered marital property. These accounts are often part of the couple’s total assets. A QDRO is therefore the best vehicle to divide these assets.

There are many other ways to divide assets, including a property settlement agreement. To get the most out of a property settlement, it is essential to have a clear picture of what constitutes the real estate of the two spouses. Of course, you must be prepared to present the court with all relevant information to be able to enforce a proper separation. An informed spouse will be more likely to agree to a property settlement that is on point and will be able to withstand a future courtroom battle.

Working with a Reno Family Attorney on a QDRO

It is important to remember that the QDRO can be complicated and take a long time to approve and implement. It is important to have a QDRO ready as soon as possible. No matter where you are in the divorce process, Richard P. Davies and his team are here to help you with all your divorce and asset division needs in Reno, Nevada. Call (775) 360-6894 today to schedule your free consultation.


child custody, divorce, financial planning, qdro, qualified domestic relations order, splitting assets in divorce

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