Divorce and legal separation can entail more than just emotional and legal complexities. They can also involve navigating intricate and complex tax implications. There are eight key considerations to consider relative to...more
Despite its unusual sounding name, a QDRO isn’t an alien from a science fiction movie or a geometric equation. In fact, QDRO stands for “qualified domestic relations order.” If you’re in the process of a divorce, a QDRO may...more
To help employers properly administer their 401(k) plans, in 2022, Foley & Lardner LLP is authoring a series of monthly “401(k) Compliance Check” newsletters. This article discusses some of the policies that are important for...more
A qualified domestic relations order (“QDRO”) is a state domestic relations order that assigns to an alternate payee (such as a former spouse or a child) the right to receive all or a portion of benefits payable to a plan...more
The year 2020 brought a lot of unexpected togetherness to families and couples. While there have been some positive perks to spending so much time together, it has also added additional stress to relationships. Retirement...more
In July 2020, the Government Accountability Office (GAO) prepared a report for the Ranking Member of the Senate Committee on Health, Education, Labor and Pensions about Qualified Domestic Relations Orders (QDROs). QDROs are...more
I always talk about how plan sponsors need to work with experienced financial advisors, third party administration (TPA) firms, and ERISA attorneys on their plan needs. Like with reasonable fees, I believe that the term...more
Due to widespread court closures as a result of the coronavirus (COVID-19) pandemic, it may be difficult for participants or their attorneys to obtain a certified copy of a domestic relations order that many retirement plans...more
A 401(k) is a common asset that has to be divided in a divorce. In many cases, the 401(k) is one of the more valuable assets. Individuals often work their whole career trying to build up their 401(k) balance so that they can...more
It’s funny in a sense that the people who should be most experienced with Qualified Domestic Relations Orders (QDROs), many divorce attorneys, don’t seem to know how to draft a QDRO....more
ERISA Section 206(d)(3)(G)(ii) requires sponsors of qualified retirement plans to maintain written procedures for the administration of qualified domestic relations orders (“QDROs”), and the Plan Administrator has an...more
I was asked recently by a financial advisor in New York, to review and comment on a chart he had put together which was designed to help newly-divorced people in get back on their feet. The draft document I received covered...more
We recently received a favorable appellate decision on behalf of our client whose ex-husband tried to manipulate their divorce agreement regarding distribution of his New Jersey PERS pension (“pension”) nearly three decades...more
A common concern among spouses facing separation and divorce is the prospect of dividing their retirement accounts because of the misconception that retirement accounts have to be liquidated to be divided, resulting in taxes...more
You were just divorced from your spouse and a provision of your Marital Settlement Agreement incorporated into your Final Judgment of Divorce reflects that you agreed to divide specific retirement accounts belonging to you...more
After going through a divorce, many became so consumed about the divorce itself that it’s hard to know where to turn next. For many, it’s hard to finally accept that the divorce itself is done and now it’s time to move on and...more
The recent United States Tax Court case of Jeremy Ray Summers v. Commission, T.C. Memo 2017-125, is an example of the old adage that “no good deed goes unpunished.” The case also highlights how sometimes form triumphs over...more
In a 2016 non-precedential appellate court decision, Grothey v. Grothey, the court attempted to untangle an agreement by husband and wife reached in 2004. The agreement provided that wife was to receive 65% of husband’s...more
Employers know that they must honor qualified domestic relations orders (QDROs) that assign a portion of a retirement benefit to a participant’s former spouse, known as an alternate payee, when the participant and alternate...more
Although we pride ourselves on preparing QDROs at a very fast pace, often the hardest thing to tell a potential client and/or referring attorney is that there is no guarantee as to when the QDRO process will be complete. This...more
A recent opinion from the Second Circuit puts retirement plan administrators on notice that adjustments to benefits may be necessary to account for retroactively effective qualified domestic relations orders (QDROs). In...more
In a historic decision, the United States Supreme Court in Obergefell v. Hodges recently held that the Fourteenth Amendment of the United States Constitution requires all jurisdictions in all fifty states to: (1) license a...more
The purpose of a settlement agreement is to resolve some or all of the outstanding issues in a pending case. In the divorce context, it is common for attorneys to use broad language in their agreements related to the...more
As with all community property, retirement assets are subject to division upon dissolution. Therefore, that portion of any and all retirement assets accumulated during the course of the marriage must be divided....more
Sponsors of qualified retirement plans know that, generally speaking, plan benefits cannot be taken from a participant through legal process or otherwise be assigned to anyone other than the participant. There is an exception...more