In a divorce, where pensions and retirement or tax-deferred accounts such as 401ks and annuities are distributed, the parties generally have to have them split by a QDRO or Qualified Domestic Relations Order. IRAs generally may not need a QDRO under applicable law. Generally, 401ks and annuities are distributed into a rollover IRA. The marital coverture period, generally, from the date of the marriage to the date of the complaint for divorce filing, is that period where the accounts accrue that is distributed. Generally, the distribution is 50/50 for whatever accrued during the marital coverture period. If you have questions regarding QDROs and the equitable distribution of pensions or tax deferred or retirement accounts, please call us at 732-390-0480 or 201-242-1119 in our East Brunswick or Fort Lee offices. Free consultations and night appointments are available. Ask us about our flat fees for an uncontested divorce.
Green & Associates, LLC Blog
Pensions and QDROs, Qualified Domestic Relations Orders and the Distribution of Pension Benefits to Alternate Payees and Survivorship Rights
Pensions must generally be split 50/50 for the asset that accrued during the marital period, from the date of the marriage to the date of the divorce complaint filing. They are generally split via a QDRO or Qualified Domestic Relations Order, an order executed by the Court that is then sent to the plan directing them to split the pension based on the marital period. QDROs may be drafted by a service or some plans have their own QDRO. Every plan has its own terms as well that allow for certain distributions and disallow others. For example, generally, a party that is the alternate payee or the party who is receiving a distribution from the pension from the other spouse, should seek survivorship rights.