Some El Paso couples who are getting a divorce might not realize that they need a document known as a Qualified Domestic Relations Order in order to divide a retirement account. This is a complex document and process, and individuals who rush through this process might find that they end up paying more in fees and taxes than they expected. People might want to visit a certified divorce financial analyst that can help them and their attorney understand the financial implications of the document.
A retirement account may be divided 50/50 in Texas since it is a community property state. The QDRO may also be used to pay spousal or child support.
Working with a financial analyst may help people to ensure that they are able to roll over their retirement account quickly and with minimal costs. The financial analyst might be able to explain how the worth of their account could be affected by taxes and fees. For example, with advice from a financial analyst, people might decide to set aside a portion of their retirement account to cover costs. Depending on the age of the individual, that person might also be able to start a new retirement account that they add to for the remainder of their working life.
The division of property and other aspects of divorce, such as making child custody arrangements, can be challenging. People should try not to let emotions overcome their decision-making ability. For example, an angry person might be tempted to try to impede the process while a person who wants the divorce over with quickly might concede too much. An attorney might be able to offer guidance in these situations.