Dividing Pension or Other Retirement Funds in a Divorce
New Jersey has an equitable distribution statute that requires that the parties in a divorce each receive a portion of the marital assets. The assets are usually divided regardless of who’s name the property is in. The same applies for pension funds, 401k, or other retirement account. Contributions made to a retirement fund during the marriage may be subject to distribution between the spouses. However, any contributions made prior to the marriage or after the divorce complaint was filed may be exempt from the distribution.
What is a Qualified Domestic Relations Order?
A Qualified Domestic Relations Order, commonly referred to as a QDRO, is a court order that directs a pension or retirement fund administrator to distribute a portion of the retirement assets to the other spouse upon the dissolution of the marriage. While a QDRO is signed off and ordered by a judge, the terms of the QDRO are usually determined by the spouses. There is also a specific formula that is used to determine the full benefit amount that the other spouse could be entitled to.
Is a QDRO Necessary in a Divorce?
A Qualified Domestic Relations Order may be useful, is not always necessary in a divorce. Sometimes the divorcing couple may decide to include the terms of the division of retirement or pension funds in the divorce agreement. Spouses may also agree to not
If you have questions about what might happen to your retirement funds and pensions during the equitable distribution process, speak with an experienced divorce attorney who can provide you with assistance.
Ross and Calandrillo, LLC is a full-service divorce and family law firm in Mountainside, New Jersey. For strong legal representation in all of your family law matters, contact Ross and Calandrillo, LLC to schedule a consultation.