Couples in Michigan who are getting a divorce and who need to divide certain types of retirement accounts will need a document called a Qualified Domestic Relations Order. However, they need to understand the financial implications of a QDRO. This could include taxes and other fees. An attorney may be able to assist a spouse or might refer them to a certified divorce financial analyst who can offer further specific guidance on the QDRO.
A QDRO is an order for the division of a retirement account, and it might be used to pay alimony or child support. The QDRO may also be helpful in transferring or rolling over retirement accounts quickly.
Dividing assets with a retirement account involved might play out in several different ways. A couple might agree that one will take a paid-off home and the other will take the retirement account. If the retirement account is worth more than the home, it might look like that person got the better deal, but this may not necessarily be the case. For example, if people want to make a withdrawal before the age of 59 1/2, they will incur a penalty. In another scenario, each person splitting a retirement account worth £2.2 million might set aside $100,000 to cover any fees that may arise.
An Oakland County, Michigan divorce attorney might be able to assist an individual with property division and other aspects of divorce. Counsel might be able to assist l in understanding the financial implications of various decisions. In some cases, people may not make the best decisions because of the emotions surrounding the divorce. This could lead to them struggling financially after a divorce. An attorney might be able to assist in making decisions about when compromises might be appropriate during divorce negotiations.