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A QDRO’s central relevance for some divorcing Arkansas parties

On Behalf of | Dec 14, 2018 | Divorce, Firm News

“Splitting financial worlds.”

That is a reference we make on Robertson, Oswalt, Nony & Associates’ family law website to what a key aspect of the dissolution process can seem like for many divorcing Arkansas couples.

And, indeed, a major fissuring often does occur in the realm of divorce-linked asset distribution.

After all, there is typically much at stake when it comes to fairly distributing marital property. Such assets are often strewn across various categories and anything but neatly compartmentalized or easily divided. For many couples, making a reasoned and accurate determination concerning asset splitting is the most difficult divorce-tied task of all.

Consider assets that might exist in one impending-ex’s company-sponsored account. Although it might initially seem that a quick 50/50 split of such wealth makes optimal sense in a divorce, a couple might ultimately reach a different conclusion following a candid discussion with experienced asset-division attorneys.

If some 401(k) or related transfer of wealth is agreed upon, proven counsel’s further input might reasonably be required to ensure that the federal transferring process and connected rules are fully understood and adhered to. If they are not, materially adverse tax and other financial consequences can ensue for both the account owner and recipient.

A so-called QDRO (qualified domestic relations order) spells out the applicable rules and process to be followed for divorce-tied transfers of money held in retirement or pension plans. We duly note on our Little Rock family law website that no liabilities or penalties attach to either divorcing spouse when a QDRO is properly complied with.

We welcome contacts to the firm to discuss the workings of a QDRO and how it can importantly feature in a given divorce, as well as additional matters that can affect a fair property distribution.


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