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Area of Practice: Domestic Law

Dividing Pensions and 401 Savings Plans

Dealing with a domestic law situation can be a frightening experience. Most people have little experience with the legal system and are not sure what to expect. One of the most frequent questions for domestic law attorneys relates to the division of marital property after a divorce.

As part of a divorce, the Court may retain the power to divide property. In Delaware , marital property is divided on an equitable basis. This marital property may consist not only of homes, vehicles, and bank accounts, but also of pension plans and 401(k) savings plans.

A Qualified Domestic Relations Order (QDRO) is a court order, which divides the marital interest in pension plans and 401(k) savings plans, and contains specific language to ensure compliance with Federal and State laws.

Many pension plans are divided by a QDRO that uses a formula which provides payment to a former spouse based on the length of the marriage and the years of employment while married. 401(k) savings plans are also divided by a QDRO, however there is no set formula for dividing the funds and each 401(k) plan manager requires specific language in the QDRO before it will be accepted and the funds divided.

It is strongly suggested that an attorney draft a QDRO to divide your pension plan and 401(k). It is essential to have a QDRO drafted and accepted by the plan manager as soon after the divorce as possible. Valuable rights and funds may be lost if the accounts are not separated or distributed properly. It is a complicated process that requires specific language and knowledge of the legal processes involved. An attorney can advise you on your legal rights and can advocate on your behalf. An attorney may be able to draft a QDRO dividing a pension plan or 401(k) without causing you to incur penalties or taxes.

Our law firm has represented hundreds of clients who need help with QDRO legal issues. Call today for a consultation with Shana Pinter at 998-0100.

DISCLAIMER: The above is basic information about your rights and should not be considered legal advice. Please seek the advice of an attorney.

Office Locations:
1202 Kirkwood Hwy
Wilmington , Delaware 19805
(302) 998-0100		 1701 Pulaski Hwy.
Bear , Delaware 19701
(302) 832-3200

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The information on this website is offered for general informational or educational purposes and does not constitute legal advice. It is our intention to keep the materials current but there is no guarantee they are up to date. Do not act or rely upon the information without seeking the advice of an attorney. Most of the attorneys in our firm are licensed and practice in the State of Delaware. The information provided in this website deals, for the most part, with the laws of Delaware. Although Delaware is the primary practice jurisdiction of our firm, we also have attorneys licensed in other states, including PA, NJ & MD. Eric M. Doroshow is the attorney in the firm primarily responsible for maintaining this website.© Law offices Doroshow, Pasquale, Krawitz and Bhaya, 2009-2010. Powered by DTOnline.