For many Louisiana residents, the division of retirement assets is a primary focus during the property division process. In fact, there are many families in which retirement savings comprise the bulk of marital wealth. Getting things right during the division of these assets is important, and should be a priority. To that end, it is important to carefully review the QDRO to ensure that there are no costly errors or omissions present.
A QDRO stands for Qualified Domestic Relations Order. This is the document that dictates how retirement assets are to be divided between parties to a divorce. Aside from getting the basic math correct, a QDRO must also carefully adhere to the requirements of each specific retirement plan.
In addition, errors on the QDRO can cause significant delays in transferring retirement assets. That can slow progress for both parties. In many cases, spouses who emerge from divorce are eager to reconstruct their financial lives in the manner of their choosing. Restructuring retirement assets is a big part of that process. Errors and omissions on the QDRO can place a significant roadblock to future financial stability.
For those in Louisiana who are preparing to divorce and are considering how their retirement savings will be divided, it is important to speak with an experienced family law attorney as soon as possible. Dividing retirement savings can have a significant impact on the financial stability of both parties following a divorce. Properly drafting a QDRO is big part of that process, and is a step that should be taken as soon as possible, in order to provide plenty of opportunity for the document to be reviewed.
Source: kiplinger.com, "QDRO: Critical Letters in a Divorce Case", Andrew McNair, March 24, 2017