Do You Need A QDRO In Your Divorce?

It may be possible for you and your spouse to retain your own separate IRAs and 401(k) plans as part of your property division agreement instead of distributing the funds evenly. However, for some North Carolinians, there are advantages that can be had with the use of a qualified domestic relations order (QDRO), which allows you to divide retirement benefits in divorce while avoiding penalties.

  • A QDRO allows you to transfer IRA or retirement plan funds tax-free and without the 10 percent penalty early withdrawal would usually incur.
  • Assets from pension funds, 401(k) plans, 403(b) plans and IRAs can be transferred tax efficiently with a QDRO.
  • You may also use a QDRO to collect past due child support or spousal support payments.

The Benefits Of Experienced Attorney Guidance

Your property distribution strategy should be executed with the legal counsel and representation of a lawyer who is familiar with the complexities of high-asset divorce cases. If your QDRO is not filed properly, proper approvals are not received from plan administrators or beneficiaries of your accounts are not changed, you may find that you are unable to collect significant sums of money years down the road while your ex-spouse is sitting pretty.

The QDRO is a separate court order from your final divorce decree, but it should be evaluated in tandem with your property distribution agreement.

At Epperson Law PLLC, we take significant steps to protect your assets and interests throughout the divorce process. If part of your retirement account should be classified as separate property, as opposed to marital property, we will identify it accurately and preserve your wealth.

After taking inventory of your full financial picture, we will advise you and help you with the best possible strategy to preserve your wealth, manage living expenses and secure your financial future with an intelligent long-term plan that is developed in collaboration with you and your other financial advisers.

Statewide Divorce Representation

With offices in Weddington and Boone, we serve clients in the areas of Union County, Mecklenburg County, Charlotte, Winston-Salem, Boone and throughout North Carolina.

Please call our law firm toll free at 888-805-8163 to schedule a consultation with one of our experienced attorneys. We are also available by secure email and responsive to our clients' needs 24/7.