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Quick QDRO question

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arosenth

Junior Member
What is the name of your state (CO)?

My STBX and I are filing for divorce pro se. I have a Profit Sharing 401K Plan through fidelity that we need a QDRO for. I went to Fidelity's website and filled and QDRO out online that meets what we have agreed upon in the divorce (final court date of January 10th to obtain the decree). At the bottom of the QDRO it says that we each need to sign it and have a judge sign the form as well, get it notorized and send in the copy.

Would I take this to the court and file the paper? Take it with me to the judge on January 10th? If anyone knows how this works or what to do I would greatly appreciate it!

We also have several other ROth IRA's, another retirement account, and my STBX has a 401k as well. Would we do the same process with QDRO's for these accounts as well?
 


LdiJ

LdiJ

Senior Member
arosenth said:
What is the name of your state (CO)?

My STBX and I are filing for divorce pro se. I have a Profit Sharing 401K Plan through fidelity that we need a QDRO for. I went to Fidelity's website and filled and QDRO out online that meets what we have agreed upon in the divorce (final court date of January 10th to obtain the decree). At the bottom of the QDRO it says that we each need to sign it and have a judge sign the form as well, get it notorized and send in the copy.

Would I take this to the court and file the paper? Take it with me to the judge on January 10th? If anyone knows how this works or what to do I would greatly appreciate it!

We also have several other ROth IRA's, another retirement account, and my STBX has a 401k as well. Would we do the same process with QDRO's for these accounts as well?
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You are really kind of doing this the hard way. It would be simpler to add up what each one of you has, because each account is individual, and then find out the difference, and then do one QDRO, on one account, to even things out.

Then you would have to submit just one to the judge.
 
A

arosenth

Junior Member
I can't say that I don't totally agree with you, but here are his points...

1) Some of the money is pre-tax, some post-tax, some taxable accounts and some not. From the point, not all the money is "worth" all the same.

2) His other point is that if the market should take a drastic hike or fall, one person could be left with subtancially more or less than the other, and that is why dividing all accounts 50/50 ensures that both parties are covered if such market fluctuations should occur.

The bad part of this is this that he does so happen to be a financial planner, so in terms of finances, he can be rather stubborn.

But back to my original question, do I just take these to the court and file them to have the judge sign them?

Once I submit a QDRO, how long does it typically take for it to completely process?
 
LdiJ

LdiJ

Senior Member
arosenth said:
I can't say that I don't totally agree with you, but here are his points...

1) Some of the money is pre-tax, some post-tax, some taxable accounts and some not. From the point, not all the money is "worth" all the same.

2) His other point is that if the market should take a drastic hike or fall, one person could be left with subtancially more or less than the other, and that is why dividing all accounts 50/50 ensures that both parties are covered if such market fluctuations should occur.

The bad part of this is this that he does so happen to be a financial planner, so in terms of finances, he can be rather stubborn.

But back to my original question, do I just take these to the court and file them to have the judge sign them?

Once I submit a QDRO, how long does it typically take for it to completely process?
Click to expand...
If he wants to do it the hard way, then so be it. It seems a little silly to me.

The pre and post tax accounts could certainly be netted against each other, and once the money is divided its up to each of them to decide whether to keep the current investments or roll them into something else.

In any case, once all the QDROs are done they should be submitted to the court for the judge's signature (after the parties have signed them) and then the fully executed copies submitted to the individual plans so that the accounts can be divided.
 
M

mistoffolees

Senior Member
LdiJ said:
The pre and post tax accounts could certainly be netted against each other, and once the money is divided its up to each of them to decide whether to keep the current investments or roll them into something else.
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As always, this is bad advice.

OP needs to at least CONSIDER whether they'll be paying taxes on the money in retirement. If they expect to be paying any taxes in retirement, the after-tax accounts are worth more than the pre-tax accounts.

It is impossible to know how much tax either of them will be paying, but it needs to be considered. That could take several forms:

1. Go ahead and divide it 1:1 but give the pre-tax accounts to the person who is least likely to pay taxes in retirement.

2. Come up with an estimate of what you think taxes might be that the two of you can agree on and adjust the amounts accordingly.

3. Divide the pre-tax and after-tax accounts separately.
 
LdiJ

LdiJ

Senior Member
mistoffolees said:
As always, this is bad advice.

OP needs to at least CONSIDER whether they'll be paying taxes on the money in retirement. If they expect to be paying any taxes in retirement, the after-tax accounts are worth more than the pre-tax accounts.

It is impossible to know how much tax either of them will be paying, but it needs to be considered. That could take several forms:

1. Go ahead and divide it 1:1 but give the pre-tax accounts to the person who is least likely to pay taxes in retirement.

2. Come up with an estimate of what you think taxes might be that the two of you can agree on and adjust the amounts accordingly.

3. Divide the pre-tax and after-tax accounts separately.
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That's why I suggested that the pre and post tax accounts be netted against each other (hers and his). That way they could to two QDROs, one for the pre tax amounts, and one for the post tax amounts, instead of 5 or 6 of them.

Which is basically what you said in point 3, therefore if my advice was bad, so was yours.;)
 
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