Who Needs a QDRO in a Florida Divorce?
Anyone who is planning to file for divorce in Florida or who is in the process of getting divorced in the state will need to be aware of the way in which Florida handles the classification and distribution of property. Under the Florida Statutes, Florida uses a system of property distribution known as “equitable distribution,” yet Florida’s equitable distribution law is somewhat different from those in other states. In other states, courts begin from the presumption that equitable does not necessarily mean equal, but Florida law clarifies that divorce courts should begin from the presumption that all marital property should be divided equally between the parties unless there is a reason for an unequal distribution, in which case property can be divided in a manner that is not equal.
For many married couples in Florida, retirement accounts are a type of asset that will be classified entirely as marital property — and thus subject to division — or at least partially classified as marital property. If either you or your spouse have retirement accounts, you will likely need a Qualified Domestic Relations Order (QDRO) to distribute assets held in a retirement account. Our divorce lawyers in Port St. Lucie can explain in more detail.
What is a QDRO?
A Qualified Domestic Relations Order, or a QDRO for short, is a type of court order that allows for the distribution of assets that are held in different retirement accounts. In Florida, this can be a 401(k) or 403(b) account, an IRA, or a pension through the Florida Retirement System (for public servants such as teachers in public schools or those in other state government or public positions).
Without a QDRO, any assets that are distributed from a retirement account prior to the age of retirement are subject to a 10 percent penalty in addition to tax. With a QDRO, assets in one spouse’s retirement account can be distributed into the other spouse’s retirement account without the 10 percent penalty and without tax being assessed at the time of distribution.
Does My Retirement Account Need a QDRO?
Is your retirement account likely to be classified as marital property such that you will need a QDRO?
In short, any assets acquired after the date of marriage — including the accrual of any money in your retirement account or pension — is likely to be classified as marital property and will require a QDRO for distribution.
Contact Our Port St. Lucie Divorce Attorneys Today to Discuss the Division of Your Retirement Accounts and the Use of a QDRO in Your Florida Divorce Case
Are you currently planning for or anticipating a divorce in Florida, and do you or your spouse have assets in retirement accounts that are likely to be classified at least in part as marital property? If so, you will likely need a QDRO to divide those assets without incurring fees, and one of the experienced Port St. Lucie divorce lawyers at Baginski Brandt & Brandt can assist you. Contact our firm today to have your questions answered about the division of marital property in a Florida divorce and to begin working on your petition for dissolution of marriage.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/0061.html
myfrs.com/QualifiedDomesticRelations_Orders.htm
