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Your Legal Solution Starts with a Call
Dividing assets during a divorce is rarely simple, especially when retirement accounts and pensions are involved. That’s where a Qualified Domestic Relations Order, or QDRO, comes into play.
At Hand & Toker, LLC, we help clients draft, review, and finalize QDROs that meet both state family law requirements and federal retirement plan rules. These documents are highly technical and must be handled with precision. It doesn’t matter if you’re the one receiving or dividing retirement assets; we’ll make sure your financial future is protected.
You can trust our team at Hand & Toker to advocate passionately for your family’s best interests with expertise and care.
A QDRO is a legal order that allows retirement benefits to be divided between spouses following a divorce, without triggering early withdrawal penalties or tax consequences. It gives one spouse, the alternate payee, the legal right to receive a portion of the other spouse’s retirement plan.
This document must be approved by two parties: the family court and the retirement plan administrator. It applies to retirement accounts covered by the federal Employee Retirement Income Security Act (ERISA), such as:
IRAs are not covered by QDROs, but they can still be divided through a divorce decree with specific language.
If you’re divorcing in New Jersey and one or both spouses have a retirement account, chances are you’ll need a QDRO. Simply including a retirement account in the divorce agreement isn’t enough; the funds can’t be distributed to the other spouse unless a properly executed QDRO is in place.
Without a QDRO, the account holder could face early withdrawal penalties, taxes, or even legal issues. And the non-account-holding spouse could miss out on the benefits they were legally awarded in the divorce.
At Hand & Toker, we make sure this crucial step isn’t overlooked. We draft QDROs that are accurate, enforceable, and accepted by plan administrators—so you don’t run into delays or costly mistakes.
QDROs must be worded precisely and comply with both the divorce settlement and the retirement plan’s specific rules. If any part of the document is unclear or incomplete, the plan administrator may reject it.
Some common pitfalls include:
These errors can lead to major financial headaches or even cause one party to lose their rightful share of retirement benefits. Our team ensures your QDRO is drafted carefully and submitted at the right time, with full compliance from start to finish.
It’s best to handle QDROs before the divorce is finalized, or as soon as possible afterward. The longer you wait, the more complicated things can become, especially if the account holder retires, passes away, or rolls over their funds into a different account.
We work proactively with clients, plan administrators, and financial professionals to get QDROs processed efficiently and correctly. If you’re already divorced and didn’t complete this step, it’s not too late, but time is critical.
You don’t need to navigate pension language or IRS rules alone. At Hand & Toker, we take care of the drafting, court approval, and plan submission so that your retirement division is completed smoothly and accurately.
We can also review QDROs prepared by other parties, catch errors before they become problems, and step in to help with corrections or enforcement if needed.
Whether you’re just starting the divorce process or need help finalizing the financial end of a past case, we’re here to make sure your future stays secure.
Retirement accounts are often among the most valuable assets in a marriage. If you’ve been awarded a share of your spouse’s retirement, or if you need to divide your own, we’ll help you do it right.
Contact Hand & Toker, LLC today to schedule a consultation and get the skilled legal support you need to draft and execute a QDRO that works for you.