Generate Pension Report Create Account Log In How It Works Online Demo Sample Report Download Pension Form Print Pension Form QDRO Request Forms FREE Download Book Basics of Pensions In Depth Analysis Special Issues Actuarial Standards Sample Authorizations Pension FAQs QDRO FAQs Glossary Join Our Mailing List About Our Company About Our Analysts Contact Us Phone Consultations Our Fee Schedule Testimony Your Privacy Security Terms of Use Customer Support	Junior Associate: Question? Is marital property always divided equally? Senior Law Partner: Answer That depends upon the laws of each state. The state in which your parents are divorcing does not require an equal division. Junior Associate: Question? Would the deferred distribution method work the same way for my mother's pension as it did for my father's? Senior Law Partner: Answer Yes. A Qualified Domestic Relations Order would be drafted to provide the plan administrator with a set of instructions to follow in dividing the pension. However, since there is a lump sum amount in a defined contribution plan at any point in time, the QDRO would typically instruct the plan administrator to set up a separate account for your father's portion of your mother's pension. The plan administrator would then transfer your father's share into his account. Junior Associate: Question? So under the deferred distribution method, all payments would be made in the future when my parents actually retire? Senior Law Partner: Answer In general terms - yes. Under some defined contribution plans, distribution can be made as soon as the QDRO is drafted. However, there can be significant tax implications with this type of cash distribution. This should be examined further when the time comes. Junior Associate: Question? How would an Immediate Offset Method work? Senior Law Partner: Answer In order to explain this, let's first look at your mother's defined contribution plan. Let's assume that the marital portion of her plan is worth $10,000 and that your parents also have a car that's worth $10,000. What in essence happens is that one asset offsets the other. In other words, your mother would keep the marital portion of her pension worth $10,000 and your father would get the car that is worth $10,000. This, of course, assumes that your parents would be splitting their assets equally. Previous Page Next Page (7 of 14)

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