How are my spouse’s retirement plan transferred to me?
In the case of a retirement plan consisting of a qualified pension, profit sharing incentive program, or a stock bonus plan; a qualified domestic relations order (QDRO) may be used to transfer the receiving spouse’s entitled assets with a low tax burden. QDROs may be modified but not be initiated in a post dissolution action. A QDRO cannot be used to transfer an IRA or for a pension plan containing an anti-alienation provision. Oftentimes, our lawyers will consult with an expert well versed in creating and implementing QDROs for the limited purpose of making sure the QDRO is prepared in a tax advantageous manner.