Get the QDRO Right

Unemployment is a hot button issue in America today, and we will certainly hear more about it during this next presidential campaign season. Unfortunately, so many people have been either out of work or underemployed over the past few years, and that high unemployment rate nationwide has probably done more harm to the economy than even the bust of the housing bubble. Reliable and even predictable monthly income is essential to the well-being of families, and perhaps even one of the most important topics in every divorce. That’s why any person facing a divorce must understand even the minute details of the division of assets before signing off on any type of divorce settlement agreements.

Marital assets can take on all shapes and forms – a house, art and jewelry, cars, and of course stocks and other investment vehicles. Many employers offer pensions, 401k, and other retirement plans that most workers are encouraged to participate in. These plans are often worth a lot of money – either in cash value today or future value – and are an important marital asset. A QDRO – Qualified Domestic Relations Order – is the part of your divorce settlement agreement that gives you a complete analysis of these types of marital assets and the division of them. The rules do vary from state to state, so it’s important to hire a divorce lawyer in your jurisdiction to help you to understand the QDRO. You may not want to restrict your claim to “vested benefits” in lieu of the entire “benefits” is an example of how even a word can impact the interpretation and results of your QDRO. It’s important to get the QDRO right the first time to protect your future income and make sure the split of marital assets is fair.

It isn’t folklore or urban legend that many women particularly are negatively impacted financially by divorce. Especially in the cases where women have abandoned or neglected their careers to take care of children and the family homestead, the issue of reliable and predictable monthly income takes on even greater importance. It’s tough enough to find a well-paying job even with loads of education and experience. Now imagine a job search when that experience is a decade or more in the past? Entry-level positions are common for a person reentering the workforce after some years out of the game, and invariably those positions are low paying. It’s a tough road for many spouses who need to work after a divorce in order to maintain even a basic standard of living. That’s why it’s vitally important to understand the QDRO and other financial components of a divorce settlement. Don’t sign anything until you get good counsel – it really does make a difference today and will affect your life for years to come.