One of the biggest fears many divorcing couples of later age hold involves retirement accounts. This is especially true in situations where one spouse has a retirement account and the other does not.
It is possible under state law to claim some of the account, but how does one know if they will have enough to enjoy a stable retirement?
What QDROs are for
The National Life Group helps average citizens understand Qualified Domestic Relations Order (QDRO) and the complex process of dividing retirement assets. They insist on the importance of drafting a QDRO in any divorce involving pensions or retirement accounts, especially those of high-net worth worth.
When approved by the court and implemented by the manager of the account, QDROs allow for a spouse not listed on the account to receive a portion of the value therein.
Many people end up procrastinating on submitting their QDRO due to other seemingly more pressing matters of the divorce, but this can create major hurdles.
Diminishing account value and ex-spousal death
It is possible for an ex-spouse to diminish the value of the account in the time it takes to file a QDRO. A bitter ex could easily end up withdrawing a large sum of money and handling the fee for withdrawal just to ensure that the other party has access to less money.
Additionally, if a spouse dies before a QDRO gets filed, then it is possible for the surviving ex to lose all access to the account and any potential benefits that they may have otherwise gained from it.