South Carolina QDRO Attorney

The division of assets can be one of the most complicated and time-consuming aspects of a divorce. No one wants to give up anything they’ve worked for, and both parties may feel they’re owed more than their ex-partner. Furthermore, some types of assets are very difficult to divide. Retirement accounts, for example, require the experience and knowledge of a specialist in this area.

If you’re struggling with the division of your retirement accounts and you think a QDRO could help you, it’s time to talk to the team at Nowell Law Firm. Call us at 864-469-2481 to get started.

Why You Need a QDRO Attorney

Determining how to divide retirement assets may very well be one of the most important parts of your divorce. For many couples, retirement accounts are among the largest assets they have built together.

These accounts are regulated on a federal basis, so even though your divorce abides by the rules of your state, you must also follow federal law in this area. Retirement accounts may be spread across multiple financial providers, depending on each partner’s employment history and how well they have kept up with rolling retirement savings from past employers into current accounts.

Each type of retirement plan has its own set of features and rules. These may affect how the account grows, how it is valued, and what you need to know about dividing it. These factors can change how you choose to split up accounts, so it’s crucial to work with an attorney with extensive experience in QDROs.

Remember that your retirement accounts are different from your other assets. This is the money you will live on for the rest of your life once you finish working. Making careless mistakes when you have to divide these accounts can seriously affect the amount of money you have available to you when you are no longer able to work.

Who Can Benefit from the Assistance of a QDRO Attorney?

Most of our clients are divorcing individuals who want to make sure that their retirement accounts are handled properly during the divorce process. We understand how important your hard-earned savings are to you, and it’s our goal to draft a QDRO that protects your retirement earnings.

However, we also work with other divorce attorneys in South Carolina who may have limited or no experience with QDROs. This is an area of law where it is crucial to bring in a professional with more experience if you are unsure about handling it on your own. We strive to collaborate with other family law professionals who want the best possible outcomes for their clients.

No matter what, we want our clients to be informed and involved throughout this process. Our team will use our experience and knowledge in this area to explain the differences between your various retirement accounts, and how different division plans may affect your retirement goals, and guide you to a decision that fits your needs.

Learn More About the Process

This process requires frequent and clear communication. This is the only way for both parties to compromise and come to an agreement that fits everyone’s needs. The division process starts with an in-depth look at the retirement plans and accounts that are set to be divided. The plan documentation is the best resource for this, as it gives all of the information you need to divvy up assets in a fair way.

Once both parties have agreed on how the assets are to be divided, it’s a matter of drafting the document and ensuring that it is both clear and enforceable. This is where the need for an attorney with extensive QDRO experience becomes clear. The way a divorce agreement is written out is incredibly important when it comes to a QDRO.

If the divorce agreement is written in a vague way, it is very likely that the non-owner of the original plan will lose out on benefits. Some marital rights around retirement plans are automatically lost during a divorce unless stated otherwise in the agreement.

Ideally, you’ll begin this process soon after separation and get it squared away before the divorce is actually finalized. Since this can be a sticking point for many divorcing couples, negotiations should begin early and remain a priority until complete.

Upon coming to an agreement, you’ll have to notify each affected retirement plan that a QDRO is coming soon. This notifies the plan that someone else will be receiving a share of the benefits, which protects the non-owner from having their share stolen out from underneath them while waiting for the process to be finished.

Using a QDRO for Back Payments

ERISA allows a QDRO to be used for the back payment of child support and alimony. This allows short-changed custodial parents or ex-spouses to collect what they’re owed. The people set to receive these payments are known as “alternate payees” and the QDRO must include information on how much of the benefits, either in dollar amounts or percentages, are to be paid to each alternate payee.

Note that alternate payees must be paid in full after taxes are taken out. That is to say, if a custodial parent is owed $20,000 for child support and gets a QDRO to collect it, the court must consider that some retirement plans withhold 20% for taxes.

It’s not fair for the alternate payee to be on the hook for these taxes and have their gross payment decreased. In this example, the parent would be awarded $20,000. The court would then have $4,000 withheld from the paying account to cover the 20% taxes due on the payment.

Reach Out to Nowell Law Firm for Help with Your Family Law Case Today

QDROs are a complex part of family law, and we would love to help you get what you are due. Whether you’re seeking a QDRO during a divorce or to collect late child support or alimony payments, let’s sit down and discuss what comes next. Call Nowell Law Firm at 864-469-2481 or fill out our online contact form now.