Our office is virtually open and we are continuing to serve our clients. Click Here for more information and updates.
Call Us Today

What is a QDRO and when it is needed?

For many couples in Florida today, splitting retirement account assets is a common thing during a divorce. Whether these accounts are still young with many years left to grow in value or they are mature and have been growing for decades, this can be a hard reality for spouses. Letting go of large amounts of saved assets is never easy. However, what can be even harder is watching a good portion of that money be lost to unnecessary taxes or fees.

Fortunately, it can be possible for spouses to prevent the need to pay some taxes or fees when splitting 401(K) accounts as part of a divorce settlement. The U.S. Department of Labor explains that the use of a Qualified Domestic Relations Order is essential to making sure this can be done. A QDRO lets tax entities and retirement plan administrators know that specific financial transactions are approved as part of divorce agreements.

Typically, money is not allowed to be withdrawn from retirement funds except by the fund owner and only for retirement purposes. Specific criteria such as age must be met. Distributions that fail to meet all criteria may be subject to penalties and taxes. Distributions of money to a non-account holding spouse would fall in this category. The use of a Qualified Domestic Relations Order, however, can provide the assistance needed to legally approve the transfer sans penalties or taxes.

This information is not intended to provide legal advice but general information for Florida residents about how to protect against unnecessary asset loss during a divorce.

Request Your Information

Practice areas

Contact Us Now For A Free Consultation

Case Consultation

  • * labels are required.

    In submitting this contact form and communicating with us in response to this website, you are advised not to send any confidential information. Information sent to us in response to this website does not constitute an attorney-client relationship with the Sparkman Law Firm. No attorney-client relationship exists or should be assumed as a result of this communication.
  • disclaimer
  • Privacy Policy
footer brand logo
Sparkman Law Firm
313 South Bungalow Park Avenue
Tampa, FL 33609
4.2 stars - 37 reviews

Phone: 813-374-2000
Fax: 813-374-2031
Map & Directions

P: 813-374-2000
F: 813-374-2031

313 South Bungalow Park Avenue