Often, retirement plans are the largest assets acquired during a marriage. If a retirement plan was created or improved during a marriage it should be included for consideration in an absolute divorce and subject to equitable distribution by the court. In Maryland, certain types of retirement interests such as 401(k), 403(b) and pensions require a Qualified Domestic Relations Order or QDRO, in order to be divided pursuant to federal guidelines.
What is a Maryland QDRO?
A Maryland QDRO, or Qualified Domestic Relations Order, is typically a court order dividing the pensions, 401(k), and other retirement plans in a divorce. A QDRO must clearly and accurately define a retirement asset and the appropriate division of the asset. A Maryland QDRO attorney must ensure that the QDRO is prepared precisely. Some retirement plan administrators require specific language, punctuation, and even formatting before they will honor Qualified Domestic Relations Order. If the appropriate requirements are not met in your QDRO, retirement plan administrators are not required to abide by the terms of the orders, which could stall the asset distribution process for months.
What Types of Retirement Plans Require a Maryland QDRO?
Federal law governs the transfer of any retirement interests through the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 (ERISA). Only Employee Retirement Income Security Act accounts qualify for a QDRO. Other types of retirement accounts may not.
Below is a non exhaustive list of the type of retirement asssets that fall should be divided pursuant to a Qualified Domestic Relations Order:
- ESOPs
- Non-Qualified Plans
- Tax-Deferred Annuities
- Federal/State Pensions
- Thrift Savings Plans
- 401(K)
- Keogh Plans
- Deferred Compensation Plans
- 403(b) Plan
- 457 plans
Why Do You Need a Maryland QDRO Attorney in Montgomery County, Maryland and Prince George’s County, Maryland?
Preparing a QDRO is a complicated process. Not every family attorney prepared Qualified Domestic Relations Order. In Maryland, most family attorneys do not typically draft these types of orders.
At the Law Office of LaSheena Williams, we can connect you with a trusted and competent QDRO attorneys. With the future of your financial security on the line, you don’t want to make any mistakes. If you have any questions about the division of martial assets, or other family related matter, please schedule an appointment today.
Our firm diligently represents clients throughout Rockville, Bethesda, Gaithersburg, Silver Spring, Takoma Park, Chevy Chase, College Park, Cheverly, Greenbelt, Oxon Hill, Hyattsville, Upper Marlboro, Largo, Bowie, and surrounding communities. Call us today at (301) 778-9950, or send us an online request for a consultation.
