From the Book: Divorce Amicably
This is a chapter summary from Chapter 6 of Divorce Amicably, a guide to navigating separation with dignity and cooperation.
Chapter 62 Author: Kathryn Harry
With over 30 years of Illinois family law experience, I have developed strategies for maintaining a a low conflict atmosphere so that you and your spouse may continue to function like the civilized humans you were before you decided to divorce. In the forefront of my mind when helping individuals find a resolution is the real fact that you will see your spouse again in the future, at parties, weddings, graduations and even funerals. It is so important to divorce amicably so that these future events may be experienced by you and your family without the added drama that so often accompanies divorce, ex's and blended families.
Why a QDRO Is Necessary
Dividing bank accounts or selling property is relatively straightforward. Retirement accounts, however, are governed by strict federal rules. A QDRO is a court order—separate from the divorce decree—that tells the retirement plan administrator how to divide 401(k)s, pensions, and similar employer-sponsored accounts.
Without a QDRO, retirement funds may not be divided properly, even if the divorce decree says otherwise. Worse, attempts to transfer funds without one can trigger IRS penalties and unexpected taxes. Getting the QDRO right the first time is essential to protecting your long-term financial security.
Core Elements of a QDRO Process
Risks of Delaying a QDRO
Failing to obtain and submit a QDRO promptly can have serious consequences:
-
Loss of entitlement: The account holder could move jobs, cash out, or liquidate funds.
-
Reduced value: Delays may result in losing interest or growth on your share.
-
Access issues: Without a QDRO, accessing your portion at retirement may be complicated or even impossible.
Prompt action ensures your share is secured and your financial future protected.
Secure Your Share, Secure Your Future
Retirement accounts are too important to risk with errors or delays. Divorce Amicably explains the role of QDROs in plain language, helping you understand why they matter and how to get them right. Order your copy today and take the steps needed to protect your financial future.
Want to read the full Chapter?
Featuring insights from 40 experienced financial, legal, and mental health professionals across 80 essential topics,