Dividing Retirement Assets with a QDRO
We want to tell you more about how a Qualified Domestic Relations Order (QDRO) can help you when it comes to retirement accounts in your Pasadena divorce case. As family lawyers in California with decades of experience assisting individuals and families alike, we know how difficult the process of property division can be. Under California law, most property acquired after the date of marriage will be classified as community property, and as such, it will be subject to division in your divorce. When it comes to retirement accounts, nearly all, or at least a portion of the retirement account will in fact be classified as community property.
If your retirement account is classified as community property and is subject to division, you may be concerned about the penalties and other fees associated with dividing that account. Here is where a QDRO comes in. A QDRO is a particular kind of court order that allows parties who are getting divorced to divide certain retirement benefits without incurring added costs. While taking money out of a retirement account will incur a 10% penalty and other fees under ordinary circumstances, a QDRO can allow you to split the benefits while avoiding penalty costs.
Most Spouses Need a QDRO
At Kearney Baker, many of our divorce clients need a QDRO to divide retirement benefits in a divorce. We know that you may be wondering whether you need a QDRO, and what the process of obtaining a QDRO actually entails. We want to emphasize that it is our job to make the divorce process as streamlined and smooth as possible for you, and we can do the necessary work to help you divide retirement benefits in your divorce through a QDRO. Most spouses will need this type of court order, and our Pasadena QDRO lawyers can help.
Your QDRO Attorney in Pasadena
You probably have many questions about QDROs, including how long they will take and how much they will cost. A QDRO attorney on our team can talk with you about a flat fee for the QDRO based on the complexity of the order and the amount of time it will take us to draft it. Generally speaking, the more retirement accounts that will be classified as community property and subject to division, the more complex the QDRO will be. For most clients, we can tell you that the QDRO process takes anywhere from two to four months from start to finish.
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At the Law Offices of Kearney Baker in Pasadena, we are ready to help your family with any and all tough legal issues.