Pensions, Stock Options and More
Experienced Property Division Lawyers — Seattle, Washington
It would be both impractical and wasteful to require people to "cash in" all of their investments, their pension benefits, their stock options and other valuable financial assets simply to make property division easier to accomplish.
At the same time, those assets must be considered and taken into account before a "just and equitable" marital settlement can be reached. Qualified domestic relations orders (QDROs) were created for this purpose.
If you live in the Greater Seattle and Puget Sound area of Washington State and have concerns about obtaining a fair property settlement as part of your divorce — we encourage you to call or contact our firm, Engel Law Group, for a free consultation with one of our attorneys.
What Can a QDRO Do?
A qualified domestic relations order can be used to divide pensions, defined benefit plans, and 401k's, stock option plans and other profit sharing plans, including private employer-based plans and all types of government employer plans as well.
Once issued by a court, the order essentially requires the plan administrator to recognize the rights of the spouse who obtained the order and to distribute whatever share of the benefits that spouse is entitled to.
That said — asset splits involving QDROs can be very complex. They require details on each specific plan to which the order applies. They must incorporate language that refers to the distribution arrangement set forth in the settlement agreement or judgment of divorce. They must specify the time period during which the payments are to be made. And that's not all.
Last, it is also important to be aware of the tax consequences associated with QDROs. If you seek an order and secure a share of the benefits — the tax burden associated with those benefits will shift to you as well.
For all of these reasons and more, you will want to have these orders handled by an attorney who can advise you properly and draft the required documents correctly — attorneys like the ones you'll find at Engel Law Group, P.S.
For answers to other questions you have about obtaining a qualified domestic relations order to secure the portion of your investments or spouse's benefits that you deserve — just call Engel Law Group at 206.625.9800 to schedule a free consultation or e-mail us and an attorney from our office will get back to you soon.
