FAQ’s
What is the difference between Divorce and Legal Separation?
In California, both divorce and legal separation are legal processes that allow couples to formally separate their lives and end their marital relationship. However, there are some key differences between the two:
Finality of the Relationship
Residency Requirements
Grounds for Filing
Healthcare and Benefits
How is a 401k or pension divided in a divorce?
A Qualified Domestic Relations Order (QDRO) is a court order that allows a former spouse to receive a portion of their ex-spouse’s retirement benefits, such as a pension plan or 401(k) account.
When a couple divorces, the retirement benefits earned during the marriage are considered community property and may be subject to division. A QDRO enables the transfer of a portion of the retirement benefits from the plan participant’s account to the non-participant spouse without incurring early withdrawal penalties or tax liabilities.
The QDRO must comply with the terms of the retirement plan and be approved by the plan administrator before any distribution can occur. The order will specify the percentage or amount of the benefits to be paid to the non-participant spouse and the timing of the payments.
The QDRO can also outline the division of survivor benefits, which are the benefits paid to the surviving spouse after the participant spouse passes away. If the QDRO is not drafted properly, it may result in tax implications or other unintended consequences, so it is important to consult with an attorney who has experience with QDROs.