When a Florida couple gets a divorce, there might be a retirement account to divide. Depending upon the type of account, the process may require a complex document called a Qualified Domestic Relations Order. It can end up being costly, and the parties might want to work with a certified financial analyst.
Essentially, a QDRO is an order for the division of a retirement account. It may also be used to pay things such as child support or alimony. How much each person receives from the retirement account varies from situation to situation and state to state. In Florida, it is up to the judge’s discretion. Working with a financial analyst may help a person ensure that the funds are transferred efficiently.
For example, a financial analyst might advise a person who is keeping half of a $2.2 million pension to put $100,000 aside to cover various expenses. The remaining $1 million may roll over tax-free to a new account. It is also important to remember that depending on the age of the person, there might be a considerable amount of time in which to build up more retirement savings as well. If a person keeps a retirement account in lieu of other assets, it may not be possible to withdraw funds without penalties before a certain age.
A Venice, Florida property division law firm may be able to assist a person with various aspects of property division including splitting up a retirement account. For a younger couple with smaller retirement accounts and many years ahead to save, splitting the accounts might not be necessary. The couple may decide to keep their individual retirement accounts. Older couples who are near retirement when they may place a higher priority on the retirement account.