Top

Understanding how QDROs work

When a Nevada couple divorces and one of the individuals involved has a retirement account, it may be necessary for a qualified domestic relations order to be created. A QDRO is a legal document that outlines how assets from a retirement account will be distributed. Normally, retirement accounts will only pay out assets to a named beneficiary or the owner of the account.

With a QDRO, assets from the account can be given to a different payee, which is usually the owner of the account's ex-spouse. A QDRO can pay out assets from the account in a variety of ways, including using assets to pay alimony or child support. Payments can also be made to a child, a dependent or an ex-spouse.

The amount of assets that are to be distributed from a retirement account depend on a number of circumstances, including how other assets are divided. However, generally speaking, the amount is about half of the increase in the value of the retirement account from the time that a couple were married.

There are a variety of contentious issues that people will need to have figured out during a divorce, and asset division can be one of the most likely to cause strife. In a high asset divorce, the issue can be even more of a sticking point since there are likely to be a number of items that a couple will need to split up and determine the value of, such as homes or real estate. If a couple cannot come to agreements about how to split up property, their respective attorneys might suggest mediation as an alternative to going to court.

Categories: 
Related Posts
  • Premarital Agreements Protect Your Wealth Read More
  • Do I Have to Sell My Business Interests When I Divorce? Read More
  • Community Property and Hidden Assets Read More
/