QDRO, COAP, RBCO Attorney
Securing Retirement Assets After Divorce
The Cavall Law Firm offers QDRO, COAP and RBCO consultation, preparation, and review. Clients often believe that the divorce decree is the ultimate document needed to finalize their marital transition and distribute all marital assets. However, if you have been awarded any of your former spouse’s retirement assets, a separate, post-judgment order is necessary to direct the creation of an asset in your own name, separate from your ex-spouse’s interest.
Depending on the type of retirement account it is, you may need a Qualified Domestic Relations Order (QDRO), a Civil Service Retirement System or Federal Employees Retirement Service Court Order Acceptable for Processing (CSRS or FERS COAP), a Thrift Savings Retirement Benefits Court Order (TSP RBCO) or some other applicable order.
Understanding Retirement Assets Pre- and Post-Divorce Is Critical
Whether we are talking about QDROs, COAPs or RBCOs, these are all separate court orders directing when and how a retirement plan administrator should split marital assets such aspensions, 401(k)s, SEP plans, deferred compensation plans, 403(b) plans, etc. Most retirement plans (other than government-sponsored plans) are governed by ERISA and the Internal Revenue Code, but all plans require the use of certain language and elections in order to divide these assets once a divorce is finalized.
It is especially critical to work with a QDRO attorney or speak to your matrimonial attorney before the divorce is finalized in order to ensure that your marital assets are properly protected and your post-judgment rights preserved. Failure to include language regarding market gains/losses, survivorship benefits, pre-death benefits, etc. can result in forfeiture of these benefits when it comes time to prepare and file the QDRO, COAP or RBCO.
Understanding the type of retirement account, the way the account can be divided, and the special legal and tax consequences of dividing the account between formerly married parties is critical to ensuring that the intent of the parties is carried through to retirement, and protecting the assets negotiated as part of the underlying divorce.