Evanston & North Shore Qualified Domestic Relations Orders (QDRO) Attorney

Pensions & 401(k) Division in a Divorce: We Can Help

Everything shared in a marriage is shared in a divorce.

When a married couple divorces, their marital property is divided. This includes pensions, 401(k)s, IRAs, and other retirement accounts. It doesn’t matter whose name is on the account. If these accounts were opened and funded during the marriage, they are divided in the divorce.

Splitting retirement accounts like pensions and 401(k)s is more complex than dividing other assets. It requires a document called a Qualified Domestic Relations Order or QDRO. An Evanston QDRO attorney can help ensure equitable distribution, with thoughtful recommendations about the details others might miss. O. Long Law guides you through the entire process to safeguard you and your assets. We can prepare QDROs for any US jurisdiction.

Why Choose O. Long Law?

As a women-led family firm, we know stay-at-home parents are particularly vulnerable since they lose years of potential income and career advancement. We ensure that the division of assets negotiated during your divorce goes into effect, so you get your share.

Clients Benefit From

• Personalized client service from a team of legal and financial professionals.
• Meticulous account oversight from an in-house financial advisor.
• Honest advice to help you make an informed decision.
• Successful resolution of high-asset, complex divorces.

We have your back and know what to do regarding equitable distribution.

QDRO: Laws & What to Consider

The Long & Short of It…

Federal law requires that pensions and 401(k)s are transferred in a divorce using a Qualified Domestic Relations Order (QDRO). A QDRO is a court order that legally transfers marital pension benefits or retirement plan funds to a participant’s spouse or former spouse.

Dividing Retirement Plans

Dividing retirement plans is challenging because their value can be based on a combination of employer and employee contributions, growth rates during or before/after the marriage, and market trends. Unless both parties are retired, they usually don’t have access to a pension until they reach a certain age.

Retirement assets must be divided in a divorce, but that isn’t the last step. After your Judgment is entered, you still need another order, a QDRO, to get those assets divided.

Create Separate Accounts

Once the plan is valued, the QDRO orders the retirement plan administrator to create two accounts, one per spouse.

QDRO Timeline & Procedure

It can take 60 to 90 days or sometimes longer to complete the process. Pension QDROs should be completed when your divorce is finalized.

Info Required in a QDRO

Most QDROs contain:

• The full name and a current mailing address for each party
• The specific name and account number of the plan to which the order applies
• The percentage or exact dollar amount to be paid to the alternate payee
• The payment terms
• Limitations for the transfer of benefits

The QDRO Process

• Identify and assign a value for all pension and 401(k)s eligible for QDRO.
• Draft the QDRO.
• Allow both parties (and their divorce attorneys) to review.
• After all, changes are made, each party has a final review before signing.
• The signed QDRO is sent to a judge for review, approval, and entry into the court records.
• The certified QDRO is sent to the Plan Administrator.
• Plan Administrator notifies both parties when funds are transferred into each party’s respective accounts.