Divorce Dictionary

Today, we will begin a series that we call “Divorce Dictionary.”   We have found over the years  when working with clients that we use legal terms of art that are not familiar to the ordinary person who has never faced divorce, never thought he/she would face , and hopes never to deal with divorce again.   To help navigate this world and its unique language, we have created this dictionary to help you understand.   

You need a what?

What you need is a QDRO?  A what?  A QDRO…. A qualified domestic relations order is that document that you need to tell the person who administers a retirement plan what to do with the benefits in that plan.  It can tell what percentage of benefits each spouse receives; it can tell a specific amount that each person receives;  it can tell whether investment experience should be applied (for certain plans); it can tell whether cost of living adjustments should be applied (for other types of plans); it can outline how survivor options must be exercised.  Without this document, the plan administrator does not know what to do and will not do anything without it.   The QDRO (pronounced –“qua-dro”) must be signed by the Court and a certified copy must be sent to the plan.  Experienced family law attorneys can help prepare these important documents and work with the plan administrators to make sure that the division is accurately done.

Retirement Planning

Retirement planning is important whether you are in your 20s, 30s, 40s, or 50s.  It is even more important if you are facing separation and divorce.   Understanding your family’s sources of retirement income is necessary.  Will you have Social Security independently or through your spouse?  Do you or your spouse have a pension (defined benefit ) plan through employment that will pay an amount each month at retirement?  What are the terms of that plan with respect to cost of living adjustments, survivor benefits, etc.?  Do you or your spouse have a 401k plan from  which distributions can be taken?  Are there any loans outstanding against the plan?   Does the employer match contributions and at what time each year does such a match occur?  Once you determine the potential sources that currently exist, a next good step is to work with your attorney and possibly a financial planner to construct a plan for how those sources can be distributed in a manner to help you toward your retirement goals.   The division of retirement benefits as part of equitable distribution in a divorce matter can be highly disputed and emotional.   Knowing how each plan works and how receiving portions of any or all of those plans is necessary to make sure your financial future post-separation is secure.

Divorce after 50

Nowadays, in our family law practice, we are seeing more couples who have reached their mid-50s or beyond and who are facing separation and divorce.  For these couples, the issue of retirement and the division of retirement benefits is crucial.  Spousal support, if awarded, can have a significant impact on the retirement plans of a spouse.  In the legal profession, and at bench bar conferences around Virginia, there are ongoing discussions about how long a payor spouse should have to work or if the payor spouse chooses to elect retirement, about what the impact should be on the spousal support award.  Some judicial case opinions have indicated that a voluntary retirement should not act to reduce support at all and income is imputed to the retiree at the amount being earned before retirement; some recent judicial case opinions also suggest that if retirement is voluntary, then other assets may be considered to satisfy the support obligation.  Financial planning is important at any stage of life, but a good supplement to your family law attorney in a divorce matter is a financial planner with experience and education in dealing with the special facts presented in such situations.

After the Divorce...

Many people involved in a divorce are focused on getting through that process, learning what the new state of their financial affairs may be, and figuring out how to live on the net income that is available.  The Final Decree of Divorce, with its gold seal, usually signifies the end of process that seems never-ending.  However, you should not stop there without a careful review of your estate plan.  Have you confirmed that beneficiaries on your accounts are as you want them to be?  Have you determined that payable on death accounts have been changed to reflect what you want?  Is your will accurate?  Some changes happen automatically upon entry of a decree of divorce, but you should use your own diligence to make sure that everything is how you want it in the event of your post-divorce death.  It’s smart planning.

Social Media

Social media is great.  Connecting to friends from work, friends from college, friends from high school can be fun.  Posting pictures from your great vacation or from your night out lets you show your friends the awesome ways you spend your free time.  But don’t forget, social media also is a way for your spouse’s attorney to find information about you if you are involved in a divorce, custody or other family law action.

Having an Advocate for You

If you have been following us for the last several blogs, you may be wondering why divorce attorneys are giving tips about lessening stress for couples and marriages.  We see folks when these stresses become too much for a marriage to handle, when planning and communication has not been done, or when goals are no longer aligned.  We know the toll that separation and divorce can take on families.  We are advocates for people who face separation and divorce, who must now face issues of custody and child support and alimony.   We also feel it is important advocate for people to make their own new year’s resolutions to help them toward their objectives for their lives, their marriages, and their families.