Understanding Retirement Division During a Divorce
Hi, I’m Tulsa Dads.Law attorney Clint Hastings. I practice here in Tulsa, Oklahoma, and I focus on fathers’ rights.
So maybe you’ve done some research, consulted a lawyer, or already have one—and you’ve been told that you’ll need to pay your wife her share of your retirement. Or perhaps you’re the one receiving a portion of her retirement. But how does that actually happen?
What is a Qualified Domestic Relations Order (QDRO)?
Most people worry that they’ll need to withdraw funds from their 401(k) or IRA and incur penalties. Fortunately, that’s not how it’s done. The proper method is through a court order called a Qualified Domestic Relations Order—commonly referred to as a QDRO. This is a separate order from your divorce decree, and it’s sent to the plan administrator of your retirement account.
Understanding Valuation and Division
For example, if you and your spouse separated one year before the divorce was finalized, she may be entitled to half of the retirement earned during the marriage up to the date of separation. The QDRO tells the plan administrator, “Use the value from the date of separation, take 50%, and roll it into a separate account for the spouse.” Sometimes, the QDRO specifies whether earnings on that portion after the separation date are also included. That depends on the agreement or court order.
Consult with a Divorce Attorney Today
I know this can sound complicated—and it often is—but this should give you a basic understanding of how retirement division works in a divorce. I’ll be doing more videos to break this down further and address common questions from clients and viewers. I hope this helps. If you’d like a consultation on these issues, call (918) 962-0900 today to schedule an appointment with Tulsa divorce attorney Clint Hastings. Thanks.
