Divorce can significantly impact your financial planning, especially when it comes to retirement benefits. In New York, dividing pension benefits in a divorce requires specific legal steps to ensure that both parties receive their fair share of the assets accrued during the marriage. Understanding the critical role of a Qualified Domestic Relations Order (QDRO) is essential for anyone going through a divorce in New York.
The Role of QDROs in Divorce
A Qualified Domestic Relations Order is a legal decree that allows for the division of pension benefits between divorcing spouses. This order is necessary for one spouse to gain access to the pension benefits of the other when they retire, making it a pivotal element of divorce proceedings involving retirement funds.
Ensuring Your Pension Rights Are Protected
“It’s crucial to have a QDRO prepared as soon as the divorce is finalized,” says Brian D. Perskin, a seasoned New York divorce attorney. “Without this order, you may be unable to collect pension benefits, which can significantly affect your financial security in retirement.” A QDRO must be approved by the court and the pension plan administrator to take effect, and it should clearly outline how the pension assets will be split.
Common Pitfalls in Pension Division
Many divorcing couples overlook the need for a QDRO, which can lead to complications in the future. For example, in a recent case from the third department, a wife was unaware that her husband had retired and missed collecting her share of the pension benefits because they did not have a QDRO in place. This oversight resulted in her inability to claim past benefits that were beyond the statute of limitations.
Key Steps to Take During Divorce
When negotiating your divorce settlement, consider the following essential actions to protect your pension rights:
- Discuss Pension Plans: Clearly understand any pension plans owned by either spouse and discuss how they will be handled.
- Hire a Competent Lawyer: Ensure your lawyer is knowledgeable about New York divorce law and the specifics of pension division.
- Draft a QDRO: Have your attorney draft a QDRO as part of the divorce proceedings to avoid any future complications.
- Confirm Approval: Make sure the QDRO is approved by both the court and the pension plan administrator.
Hiring the Right Brooklyn Divorce Attorney
The complexities of dividing pension benefits underscore the importance of working with a divorce attorney who is up-to-date on the latest laws and procedures. Brian D. Perskin & Associates are experts in navigating the intricacies of divorce, including sensitive issues like child custody, child support, spousal support, and property division.
If you’re facing a divorce and want to ensure that your rights to pension benefits are securely established, contact Brian D. Perskin & Associates. Our experienced team will provide the guidance and representation you need to protect your financial future. Visit our divorce overview page to learn more about how we can assist you in your divorce proceedings. Secure your retirement by ensuring your legal strategy includes the preparation and approval of all necessary orders, like the QDRO, to safeguard your entitled benefits.
Contact us at 866-352-6844 today to get started.