Dividing Retirement Funds in the Orlando, Florida Area
- March 16, 2023
- ontarget
- Divorce
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Division of Assets and Debts in the Orlando, Florida Area falls under Florida Statute 61.075 Equitable Distribution. If you are dividing retirement accounts, it should be done by QDRO (Qualified Domestic Relations Order) or tax affected. That way you avoid getting hit with unanticipated taxes and penalties when you divide your retirement accounts. You should speak with your plan administrator, your financial planner, and your CPA prior to dividing your retirement accounts.
Your CPA and/or your Plan Administrator should be able to explain to you the tax ramifications and the penalties associated with the division of the retirement accounts. If you were to liquidate your retirement account, you would not get the full value of the account because of taxes and penalties. The tax affect of the retirement account should be taken into effect when dividing the retirement accounts because the asset may not be as much as you think it is worth when you divide it.
When entering into a Marital Settlement Agreement, reaching a Mediated Marital Settlement Agreement at Mediation, or at a trial, it is crucial that the retirement accounts are divided by QDRO (Qualified Domestic Relations Order) or tax affected. You would request the judge divide your retirement accounts by QDRO or have your CPA testify as to the tax affect on the account.
Most attorneys do not prepare QDROS themselves. They will refer you to an attorney who prepares QDROs on a regular basis. Those attorneys charge approximately eight hundred fifty dollars ($850.00) per retirement account. You can usually pay them with a credit card. You should find out in advance which methods of payments they accept. They will prepare the QDRO and submit the proposed Order on Qualified Domestic Relation Order to the judge.
You should make sure that you put in your Marital Settlement Agreement or Mediated Settlement Agreement as to who will pay for the Qualified Domestic Relations Order. Is your spouse paying a hundred percent (100%) for the preparation of a Qualified Domestic Relations Order? Or are you splitting the fee to prepare the Qualified Domestic Relations Order wherein you pay fifty percent (50%) and your spouse pays fifty percent (50%)?
If you have more questions regarding a Marital and Family Law matter, you may call Ann Marie Giordano Gilden at Ann Marie Giordano Gilden, P.A. at 407-732-7620 and set an initial consultation.