Retirement funds not off limits during divorce property division

During divorce, most people know that there are many steps that need taking. For property division in particular, it may be important to obtain forms, records and other documents that could prove ownership or help divide assets. When it comes to retirement funds, Kentucky residents may need to obtain qualified domestic relations orders if they hope to split 401(k) accounts.

Retirement funds can prove tricky to distribute during divorce because there are often penalties for early withdrawal and regulations in place to protect the funds for the retiree. However, these issues do not mean that the funds are off limits during divorce. The QDRO allows the receiving party to become an alternate payee and obtain his or her share of the funds as decided in the settlement or judge ruling.

In order to obtain a QDRO, the receiving party’s attorney may draft the document, submit it for approval by the court and then submit the approved document to the administrators of the retirement account. These administrators must also approve the QDRO for funds to be distributed. If there is an issue with the document, a clear reason for rejection must be given and how it can be fixed for approval.

Though it may take extra effort to get everything out of property division proceedings that a person is looking for, it may prove worth it in the end. If Kentucky residents have questions regarding QDROs or other documents that may be needed, they may find speaking with legal professionals useful. Understanding the steps necessary to obtaining property may help individuals move through their proceedings more smoothly.

Source:, “What’s a QDRO?“, Jean Folger, Feb. 26, 2018