January 23, 2014 /24-7PressRelease/
-- New York couples who are working through the process of a divorce have many issues with which to contend. The identification of separate and marital property and the resulting property division
is among one of the most difficult areas to reach agreement.
In today's world, retirement funds are a common asset that is part of a divorce settlement. The need to protect for a future is great and there are some ways that too many people end up losing valuable money from these accounts by not following the proper or optimal procedures. Understanding the ways to prevent this is critical for both parties.
Take note of the calendar
A divorce decree alone is not the only document or set of guidelines that people must heed when splitting retirement funds
. Even though a divorce decree may stipulate the division of a particular account or fund, there are still processes and guidelines that must be followed to ensure that any transfer or distribution of money is done at the stated time.
There are usually windows in which this is allowed in order to avoid penalties or taxes from being assessed. It is critical to follow these timelines. If you do not, you are likely to see a large portion of your investment disappear unnecessarily.
Make the QDRO standard procedure
Many actions that take place as part of a divorce require the filing of a Qualified Domestic Relations Order. This is essentially a way of making sure the court and any other pertinent parties know that the action is part of a divorce settlement.
There are some times that the QDRO is not required but is allowed and leveraging this at these times is one of the smartest things you can do. The QDRO is like an insurance policy or a guarantee that your distribution will not be taxed or penalized when it should not be. It is one of the simplest ways you can avoid big hassle later on.
Work with experienced professionals
A divorce can leave you emotionally drained, making it harder to be able to make the best decisions. Add to that the many situations that can cost or save you valuable dollars and the need for proper legal help is easy to see. When making your decision about an attorney to help you with your divorce, make sure to ask prospective candidates about their experience in handling the transfer or splitting of retirement funds as well as other topics specific to your situation.
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