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According to the United States Department of Labor, “more than 46 million private wage and salary workers are currently covered by employer-provided retirement plans in the United States.” These plans often serve as the primary source of retirement savings for the workers who have them. During a divorce, in order to have a fair and equitable division of property, one spouse may wish to claim an interest in the other spouse’s plan.
A Qualified Domestic Relations Order (QDRO) is a judgment, decree, order or court-approved property settlement agreement that recognizes the legal interest one spouse has in the other spouse’s benefits under an employer-provided retirement plan.
The division of marital property is governed by state law. However, QDROs carry tax consequences for each party involved. This means that the division of retirement interests must also comply with federal law. In order for a QDRO to be valid in Minneapolis and St. Paul it must be drafted in accordance with Minnesota law, the federal Employment Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986.
Due to the intricacies involved in drafting a valid QDRO, these orders should be drafted with extreme care and foresight to ensure your assets are divided and able to be accessed according to your wishes. A single mistake could render your money inaccessible.
An experienced attorney can help you divide your employer-provided retirement benefits while avoiding the mistakes and pitfalls commonly associated with QDROs. For additional information, please contact the Minneapolis family law attorneys at Banas Family Law now.
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