Texas QDRO Attorney Near You
When going through a divorce, especially later in life, determining how to split or change ownership of a retirement plan or account can be a complex and challenging process. This is particularly true when trying to avoid excessive taxes and fees during the process. In Texas, the principle of equitable distribution is used to divide marital property, which includes retirement accounts. This means that they may be subject to division or a change in ownership during the Texas divorce process.
According to the Federal legislation known as ERISA (the Employee Retirement Income Security Act of 1974), a state court may order a retirement plan to pay benefits directly to an employee’s former spouse, ensuring a fair and legally sound division of assets during a divorce. Typically, the division or change in ownership of a retirement account can be done through a Qualified Domestic Relations Order (QDRO). However, filing for a QDRO can be a tricky process when trying to equitably distribute assets without a QDRO attorney to help. Eric M. Willie is a Texas QDRO lawyer who is always happy to assist a divorcing couple with the legal division of retirement benefits and other types of marital property while trying to avoid incurring penalties or taxes.
If you are searching for an experienced Qualified Domestic Relations Order Attorney in Texas, contact Eric M. Willie at (737)260-5159 for a consultation.
What Is A QDRO In Texas?
If you are going through a divorce in Texas and have a retirement account, you will likely need to discuss with your attorney a Qualified Domestic Relations Order, otherwise referred to as a QDRO. A QDRO is an essential document needed in the divorce process if a retirement account is present, as it legally mandates the division of a couple’s retirement savings. A QDRO essentially is a court order that changes the ownership of a retirement plan to ensure a divorced spouse receives their share of the asset.
When dividing or changing ownership of a retirement account, the Employees Retirement System (ERS) must receive a photocopy of the divorce decree along with the original certified copy of the QDRO in Texas in order to review and approve it. Retirement account benefits are only payable to the alternate payee (the spouse who is not the employee), however, the ERS must determine that the QDRO is valid under Texas law. The QDRO legally instructs the employer or holder of the retirement plan to create a separate account in the name of the alternate payee and then transfer the court-awarded funds or benefits directly to their account. This transfer of retirement funds or benefits is done so without tax consequences or penalties to the employee’s spouse (plan participant). The alternate payee, however, is responsible for taxes when the funds are eventually withdrawn, making the QDRO an essential tool for protecting both parties’ financial interests during a divorce.
Once The Retirement Plan Is Divided By A QDRO, When Do I Start Receiving Funds?
After the Employees Retirement System of Texas (ERS) has received and approved the original certified copy of the Qualified Domestic Relations Order (QDRO) along with the divorce decree, then the new account will be created. However, the non-employee spouse (known as the alternate payee) will not immediately receive retirement funds or benefits. Payments from the split retirement account to the alternate payee are only issued once certain conditions are met. These conditions refer to the following:
- The member that originally held the retirement account chooses to retire and begins receiving monthly payments. When this happens, the alternate payee will receive their portion of those monthly payments.
- The account holder quits their job with the state of Texas and takes a one-time refund of their ERS retirement account. This will result in a one-time payment to the alternate payee.
- The account holder passes away, which will then turn the ERS account into a payable death benefit. If this occurs, the alternate payee will then receive a portion of the amount distributed to the estate or beneficiaries.
- The account holder takes another fund distribution required by law, with payment amounts and disbursement to the alternate payee depending on the type of distribution.
Once any of these conditions come to fruition, the ERS will notify the alternate payee in writing, providing details on the amount and instructions on how to claim their payment(s). This provides the alternate payee with instructions and the ability to receive their share of the retirement benefits in accordance with the QDRO. If you have any questions about when you will receive your portion of a retirement account after a QDRO has been submitted, please don’t hesitate to contact Eric M. Willie for assistance.
Do I Need A QDRO Attorney?
Creating and filing a Qualified Domestic Relations Order (QDRO) is an important step in the process of dividing retirement benefits during or after a divorce in Texas, and it’s important to get it right from the start. While the actual “filing” of a QDRO, including submitting the final proposed order to the county or court clerk, is a straightforward process, the earlier stages of drafting the order are far more complex and require careful legal attention. This is where a QDRO attorney in Texas can help.
Contact an Experienced Texas Qualified Domestic Relations Order Lawyer Near You
If you are searching for an experienced Qualified Domestic Relations Order Attorney in Texas, contact Eric M. Willie at (737)260-5159 for a consultation.
Eric M. Willie, a qualified QDRO attorney in Texas, has the experience to ensure that your QDRO is drafted correctly, in order to divide the retirement benefits according to the divorce agreement accurately. He will meticulously review the details of your case, prepare the necessary legal documents, and work to protect your financial interests. By seeking Eric M. Willie’s guidance, you can avoid costly mistakes and ensure that your QDRO is properly prepared, approved by the plan administrators, and ultimately filed with the court, securing your rightful share of the retirement benefits without unnecessary complications or delays.
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“This firm represented me in my divorce for almost a year and we won all of our hearings. Mr. Willie is an outstanding attorney who know the ins and outs of both family law and the court system. You couldn’t ask for a better lawyer. Highly recommend.” – Valorie Bravo
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“I found Mr. Willie both competent and professional. His strategy to address a modification petition was sound and successful. What impressed me most was his matter of fact way of analyzing the issues. He was candid and kept things simple as well as understandable. No confusing legal talk, just a clear, direct and sensible manner of approaching the conflict. Further, if you’re looking for a lawyer that will go the extra mile, Eric Willie is your man. We encountered a filing issue due to the COVID shutdown and he stayed with it until completion, proving himself a loyal and devoted attorney. I remain grateful for Mr. Willie’s services and would recommend him for any family law proceedings.” – Freddy Erdman
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