In many divorce cases, one spouse is awarded a Qualified Domestic Relations Order (QDRO) as part of the division of assets. Common types of QDRO’s include a 401(k), 403(b) and defined pension benefit plans. With a QDRO, there is an exemption to the 10% early withdrawal excise tax, so a payment made to an alternate payee spouse would be only subject to federal and state income tax. See Code Section 72(t). This can help a divorcing spouse who needs cash, but does not want to be subject to the 10% penalty. Some of the primary areas of dispute in divorce cases include division of assets and debts, spousal maintenance (alimony), child support, child custody, real estate issues, parenting time, retirement account and pension valuation, non-marital claims and business issues related to income and valuation.
During a Divorce, It is important to hire an experienced Lawyer and Law Firm who specializes in Divorce and Family Law cases, who has an advanced degree such as an MBA or CPA, and who can properly address complex legal issues during the case, including complex financial issues such as spousal maintenance, present value analysis of assets (including 401k, 403b, pensions, ESOP, and other retirement accounts), preparation of complex balance sheets, the discovery of hidden assets, analysis of Federal, Minnesota, Corporate and Partnership tax returns, high asset brokerage and financial portfolio asset review, and a firm understanding of equitable division as it applies to Minnesota divorce cases.
Please call 612-750-4843 to schedule an office consultation to review your Divorce case, or click on Contact Us.
Lake Harriet Law Office represents clients in Minneapolis, Edina, Eden Prairie, Bloomington, Golden Valley, Hopkins, Eden Prairie, Southwest Minneapolis, Linden Hills, New Hope, North Oaks, Hennepin County, Ramsey County, Richfield, St. Paul, St. Louis Park, Stillwater, Washington County, Wright County, Anoka County and Scott County.