Dividing Retirement Benefits in a Fort Lauderdale Divorce? Why A Qualified Domestic Relations Order (QDRO) is Required

Retirement savings may feel like a far-off concern, but if you’re going through a Fort Lauderdale divorce, they could be one of the most valuable assets on the table. 401(k)s, pensions, other retirement accounts or benefits are often worth as much or more than the family home or other property subject to equitable division.

Our experienced Fort Lauderdale divorce lawyer explains how retirement accounts are divided under Florida law and why a Qualified Domestic Relations Order (QDRO) is required.

Dividing Retirement Accounts In A Broward County Divorce

Florida law requires the equitable distribution of marital assets in a Fort Lauderdale divorce. This means that, under the Florida Statutes, all marital property earned or acquired by you or your spouse during the marriage is divided fairly, not equally, even if it is only in one spouse’s name.

Equitable division applies to homes, cars, personal belongings, and money in bank accounts. It also applies to retirement benefits. This includes:

• 401(k) plans and other employer-sponsored retirement funds;
• Traditional and Roth IRAs;
• Pension plans and deferred compensation;
• Military or government benefits.

Dividing retirement accounts in a Fort Lauderdale divorce is not nearly as simple as splitting a bank account. If funds are withdrawn and transferred improperly, both spouses could face heavy taxes and penalties. That’s where a Qualified Domestic Relations Order (QDRO) comes in.

How A Qualified Domestic Relations Order Protects Both Spouses In Fort Lauderdale Divorce Proceedings

A QDRO is a court order that directs a retirement plan administrator to divide the account according to the divorce settlement. It ensures the transfer happens legally and without tax consequences.

Here’s how a QDRO protects both spouses:

• Avoids tax penalties by allowing direct transfer of funds;
• Specifies how the account will be divided (percentage or dollar amount);
• Provides clarity for plan administrators so there’s no confusion or delay;
• Ensures compliance with federal laws like ERISA (Employee Retirement Income Security Act).

Without a Qualified Domestic Relations Order, you risk losing money through taxes, penalties, or administrative mistakes. Working with an experienced Fort Lauderdale divorce lawyer who understands both Florida law and the technical requirements of QDROs is key to avoiding potential problems and ensuring your future financial security.

To Protect Your Rights To Retirement Benefits, Contact Our Fort Lauderdale Divorce Lawyer Today

In a Fort Lauderdale divorce, retirement benefits often form the foundation for your long-term financial security. Even if these accounts are in your spouse’s name alone, you may still be entitled to a fair share. However, without a QDRO, you could face steep tax penalties or other serious problems that chip away at the amount and leave you with far less in the future.

At Vanessa L. Prieto Law Offices, we provide the strong, professional legal representation you need to successfully navigate this situation and get the maximum amount you deserve. To protect your rights to retirement benefits and other marital property, contact our office. Schedule a consultation today to speak with our experienced Fort Lauderdale divorce lawyer.

Sources:

flsenate.gov/Laws/Statutes/2018/61.075

dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/qdros.pdf