Divorces can be complicated, especially when a divorcing Missouri couple has many different assets to divide. The division of assets must include all valuable property owned by the couple and this often includes retirement plans. However, dividing retirement funds can be challenging. QDROs can be used to make the process easier, providing a way to avoid some of the stressful divorce negotiations.
How a QDRO works
A QDRO, or Qualified Domestic Relations Order, requires that a portion of someone’s retirement plan be given to either a spouse or child. These are useful in divorce because they provide a straightforward way of dividing retirement fund-related assets. A QDRO can be used to divide various types of retirement plans but do not apply to individual retirement accounts. Those are divided by another process.
During divorce, a QDRO may assign funds to a child to cover ordered child support. The order should include all accounts covered along with information on how much the payee will receive and when the funds will be paid out. The order should also include information on what happens if the retirement account is closed before the payout.
Seek legal advice
It’s important to cover all assets during the asset division process. Retirement accounts can be used to help pay for child support or to provide a nest egg for the ex-partner after divorce. When negotiating the division of assets, Missouri residents can benefit from working with an experienced family law attorney. These matters are often stressful and complicated so it’s beneficial to have someone on one’s side to provide guidance during the process.