The Benefits of a Qualified Domestic Relations Order

If you need help making payments to an ex-spouse, a QRDO may be the right option for you.

2012-12-13

December 13, 2012 (Press-News.org) Dealing with the aftermath of a marriage dissolving can be emotionally draining --especially when two exes are battling each other over money and assets. In some cases, making payments to an ex-spouse can be taxing, but there is one tool available that can make it easier.

What is a Qualified Domestic Relations Order?

A Qualified Domestic Relations Order, or QRDO, can be established as a way to pay your ex-spouse support payments, or divide marital assets, by transferring all or part of the funds in your pension plan to your ex. These arrangements can be made from retirement accounts including 401(k)s, 403(b)s, Keoghs or IRAs.

A QRDO can be a convenient way of making payments to your ex, and as long as the payments are made directly to your ex's qualified retirement plans, you don't have to worry about penalties and taxes for making these transfers.

In order to set up a QRDO arrangement, you must file paperwork that includes the following information:
- Your ex's full name
- Your ex's mailing address
- The Social Security numbers for you and your ex
- The dollar amount that you want your ex to be paid
- The number of payments that your ex should receive in a certain time period
- Details about the retirement accounts that the QRDO applies to

In addition to making payments to an ex-spouse, QRDO may also be set up to make payments to your children or other beneficiaries.

Although this process may sound daunting, keep in mind that in order to alleviate your tax responsibility when making payments to your ex through your retirement accounts, a QRDO must officially be in place. Otherwise, you are responsible for paying taxes on that money, and your ex is able to receive that payment without any tax burden.

The benefits of a Qualified Illinois Domestic Relations Order

Qualified Illinois Domestic Relations Order, or QILDRO, is the equivalent of a QRDO that is used for people who have accrued benefit accounts in the state retirement system-- such as schoolteachers, college professors and other state employees. These payments cannot be made to an ex-spouse prior to the retirement date of the state employee, and the state pension board calculates the amount of the payments made depending on how much money has accrued in the account over the course of the state employee's career.

Do you need legal help?

Financial matters related to a divorce can be complicated. If you need help in this area, it's best to have an experienced advocate on your side. Contact a qualified family law attorney who can advise you of what options you have in terms of giving or receiving money from your ex.

Article provided by Schlesinger & Strauss
Visit us at www.illinois-family-lawyer.com

ELSE PRESS RELEASES FROM THIS DATE:

Medical Debt Pushing Many Oregonians to the Financial Brink

2012-12-13

Getting diagnosed with cancer or another serious illness is one of the scariest things most people will ever experience. Of course, the most pressing concern is often one of life or death. But after the initial shock wears off and a treatment plan is created, many people in Oregon find themselves facing a different, yet equally troubling prospect: how on earth will they handle all the bills? Serious illness or injury is one of the most common reasons people file for bankruptcy, both in Oregon and throughout the United States. According to data published by the New York ...

The Importance of Properly Handling Evidence

2012-12-13

In November 2012, New Athens, Missouri Police Chief, Dallas Hill, was charged with two felony counts of official misconduct and one felony count of theft. The charges arose after Chief Hill helped himself to an iPod and iPad from the police department's evidence room that were being held as part of a commercial burglary and forgery case. If there was any doubt as to Hill's intentions, a forensic analysis verified that Hill had been using the devices. Aside from the moral and criminal implications of Hill's behavior, his case touches on the importance of the proper handling ...

Saudi Arabia Updates Arbitration Law to Resolve More Commercial Disputes

2012-12-13

Like the companies they serve, international arbitration venues are also subject to the pressures of competition. Various arbitration locations and policies have their advantages, and arbitration laws can make a big difference in parties' decisions about where they want commercial disputes to be resolved. Among the many reforms to international arbitration in 2012, Saudi Arabia overhauled its arbitration law to modernize outmoded practices and lessen the chances that Saudi courts will intervene in arbitrated disputes. The new law is based largely on the Model Law created ...

Children Could Soon Have More Than Two Parents Under California Law

2012-12-13

There's no doubt that family structure is changing in the twenty-first century. Gone are the days of the nuclear family being the norm; more kids are being born outside of, and in between, marriages. Even so, under current California law, children can have at most two legal parents. In stepfamily or open-adoption scenarios, this can create certain family challenges; after all, courts generally assign custody, visitation and child support among the legally recognized parents. For some California lawmakers and concerned citizens, the solution is a law that would explicitly ...

North Carolina Supreme Court Upholds Workers Compensation Award

2012-12-13

When workers suffer injuries on the job, their options for recovering compensation for medical expenses and lost income are different from typical personal injury claims. Whether they are eligible for workers compensation or also have a third-party claim due to a work-related car or truck accident, a work injury attorney can explain the legal complexities. A recent case before the Supreme Court of North Carolina reveals some of the challenges that may arise before a worker secures the right to benefits. In McAdams v. Safety Kleen Systems, a North Carolina truck driver's ...

Are Texas' and The Nation's Aging Oil and Gas Pipelines Safe?

2012-12-13

Beneath our streets and roads, 2.5 million miles of pipelines quietly carry the fuel and hazardous materials that our economy and daily lives depend on. While our energy supply needs these pipelines, some are asking whether aging pipelines are putting our safety in jeopardy. The question has significant implications for Texas, which the state Railroad Commission estimates has 366,274 miles of pipeline. As a new ProPublica report shows, the risk of catastrophic spills and explosions from pipelines is real. Pipeline accidents across the United States have killed more than ...

New FBI Report Shows Falling Crime Rates, But Police Spending Still High

2012-12-13

On October 29, the FBI announced the results of their latest crime survey: in 2011, violent crime fell for the fifth year in a row, while property crime rates declined for the ninth consecutive year. The new numbers are the latest in a precipitous drop in criminal activity that has spanned nearly two decades. But, while crime rates continue to fall, law enforcement spending remains a government priority; this could mean that if you are accused of a crime, plenty of resources will be aligned against you. Crime drops again as part of 20-year trend According to FBI ...

Winter Weather Brings Hazards for Baltimore-Area Workers

2012-12-13

Winter is here, and that means Baltimore-area motorists will be facing several months of wet and snowy driving conditions. Even though winters in Maryland are not as severe as in other parts of the country, cold snaps and winter storms can still pose significant hazards for drivers. Since car accidents are more likely to occur in inclement weather, drivers must pay special attention to winter weather safety. The need for vigilance is even greater for delivery drivers, sales professionals and others whose jobs require them to spend a significant amount of time on the ...

South Carolina Family Seeks Justice for Child's Accident Death

2012-12-13

The pain of losing a child is one of the worst things that can ever happen to a parent. When a child's death occurs because of a completely preventable accident, the tragic loss is often accompanied by an overwhelming sense of injustice. One South Carolina family has been dealing with this exact situation for nearly a year, after their 4-year-old daughter was killed in a March 2012 truck accident. The girl was riding as a passenger in her father's SUV when their vehicle was rear-ended by a semi-truck. The child died at the scene of the accident; officials said her ...

Pennsylvania's "No Texting While Driving" Law Proves Difficult to Enforce

2012-12-13

According to records kept by the Administrative Office of Pennsylvania Courts and police, there were roughly 900 citations issued to motorists under Pennsylvania's new "no texting while driving" law during the first eight months of the texting ban. And while there is little question as to why the texting law was passed - namely, to make the roads safer and curb distracted driving car accidents - many police officers are finding the new law difficult to enforce. This difficulty in enforcing the law stems from the fact that it does not forbid motorists from ...

The Benefits of a Qualified Domestic Relations Order

ELSE PRESS RELEASES FROM THIS DATE:

LAST 30 PRESS RELEASES: