When going through a divorce and subsequent property division, retirement accounts and benefits (such as a 401(k) or a pension) will require a qualified domestic relations order (QDRO) to avoid the assessment of tax penalties for early withdrawal.
What Will A QDRO Do For Me?
For divorcing couples with pensions, retirement accounts, and other retirement or benefits packages, it’s important to work with a lawyer who can help implement a QDRO to avoid incurring tax penalties. In short, a QDRO will instruct the administrator of the plan to distribute staggered payments to the receiving spouse who will then have the opportunity to add the funds to his or her retirement accounts.
Although most people automatically think of the family home, cars and other property when going through property division, retirement benefits are often the most substantial asset a couple has. If you are a government worker, there are unique retirement packages, such as thrift service plans or government pensions, that we can help identify and explain during the property division phase of your separation.
As your attorneys, we will help identify all your marital assets, explain what you may be entitled to, outline potential tax implications and take necessary steps to avoid costly penalties. We invite you to contact us, speak with Julie about your situation, and benefit from the peace of mind that comes with knowing you have someone looking out for you.
Successful Financial Planning During Divorce Begins With A Simple Conversation
Call The Law Office of Julia M. Pendleton at 336-355-8796 or submit an online contact form. Our office is located in Greensboro, North Carolina, and we work with families throughout the Piedmont Triad.