Avoiding 401(k) Division Mistakes When Getting Divorced in Virginia

Posted on Oct 4, 2011 by Hofheimer Family Law

When a couple decides to get divorced in Virginia, they oftentimes think they have all the major issues smoothed out, such as their 401(k) division. Unfortunately, due to simple errors, many couples wind up making huge retirement division mistakes, but consulting with a divorce attorney in Virginia Beach can help prevent these 401(k) mishaps.

Even in the cases where a couple agrees to divide the 401(k) assets fairly, matters can still go astray. Most mistakes are made during the settlement phase of divorce, specifically with the way the Qualified Domestic Relations Order (QDRO) is handled.

The QDRO is the order that allows employers to pay retirement benefits to an employee’s former spouse. If the wording isn’t precise and crystal clear, the couple could wind up agreeing to a deal they don’t completely understand, which may have disastrous results.

For example, if a couple agrees to split the husband’s 401(k) down the middle, and the separation agreement only says that the wife gets $25,000 from the balance, that’s exactly what she’ll get, even if the 401(k) balance later goes down due to stock market fluctuations.

If that 401(k) suffered losses by payout time, the wife would still get her $25,000, and the husband would have to take the brunt of the financial loss.

These types of incidences happen all too frequently when couples get divorced in Virginia but can be avoided with careful planning and by hiring a professional to handle the important financial matters in the divorce. An attorney in Virginia Beach can help couples throughout Virginia with the entire divorce process.

Contacting a Divorce Attorney in Virginia Beach

Throughout your divorce proceedings, you’ll naturally have a lot of questions specific to your circumstances. Get your questions answered by requesting one of our FREE divorce guides for women, or reserving your seat at our monthly divorce seminar – 1-757-425-5200.

A Virginia Beach divorce attorney at Hofheimer Family Law Firm will be committed to fighting for your rights, assisting in child custody disputes, and advocating that you receive everything you are entitled to and need in order to start your new life.