401k

For many matrimonial lawyers, the QDRO is an area of concern because if improperly prepared it leaves them open to a malpractice suit. This is where handing off the QDRO to a qualified firm such as Northstar QDRO simply becomes good common sense.

The chief purpose of a QDRO is to give a state judge the ability to divide retirement benefits like the 401(k) that are federally regulated. In general, because of their federal statutes, 401(k) benefits cannot be included in lawsuits, but a QDRO acknowledges the rights of a spouse to have access and direct interest in the 401(k). With the right QDRO in place, a 401(k) becomes another dividable asset.

However, a QDRO is a very specific order that must be filed in a timely manner in order to be effective. The language used within the QDRO has both the ability to support and ruin the ability of a spouse to collect on their ex-spouse’s 401(k). Since the obvious intention is the former, careful preparation by a specialized law firm is a must.

In order for a QDRO to be approved and allow an ex-spouse access to a 401(k), it must be consistent with the rules of the specific retirement plan (which vary by plan and employer), satisfy both state and federal law, and be viewed as favorable by retirement plan managers who can be picky and detail orientated.

If those steps sound intimidating Northstar QDRO is here to handle the 401(k) QDRO in its entirety. Take advantage of many benefits of a proactive QDRO such as avoiding the 10% tax penalty, passing on tax liability, and gain immediate access to 401(k) funds when admissible by the plan. Our team is detail-orientated and precise and has a great deal of experience drafting 401(k) QDROs that successfully prevail in court.