Qualified Domestic Relations Orders
What is a QDRO?
During a divorce, the last thing you want to worry about is the division of your retirement plan or pension. Federal tax law allows you to make a one-time, tax-free transfer of funds from your retirement account or pension to be paid to your spouse in connection with a divorce settlement. This process requires a court order known as a "qualified domestic relations order" or "QDRO."
Can my divorce lawyer prepare a qualified domestic relations order?
Qualified domestic relations orders involve drafting and getting court approval and signing of an Order which allows for all or a portion of a qualified retirement or pension plan to be assigned tax-free from one spouse to another in connection with a divorce settlement.
If the Order meets all of the requirements of Section 414(p) of the Internal Revenue Code, there is no tax imposed on the withdrawal and transfer of the funds from the 401(k) or IRA to the other spouse, as is normally the case when funds are withdrawn from a 401(k) or IRA. Many times, divorce lawyers do not feel comfortable drafting this Order since it is a creature of the federal tax code. Therefore, they look to engage a tax attorney to handle this work.
Retain a Tax Attorney in Palm Beach to Handle Your QDRO
Attorney Michael K. Miller has extensive experience in all areas of state and federal tax law. Do not hesitate to speak with a Palm Beach tax lawyer from the firm today if you are considering a QDRO and need professional counsel and assistance.
The Law Office of Michael K. Miller, P.A. can help you understand your options and can obtain the court order that you need as quickly as possible. With help from a lawyer from the firm, you can assign all or part of your retirement or pension plan to your spouse in a divorce without being taxed.
Call (561) 693-3734 today to speak with one of the qualified tax attorneys at the Law Office of Michael K. Miller!