When a Texas couple gets divorced, they may need to sign a Qualified Domestic Relations Order. The QDRO determines how certain retirement assets are to be divided. While an individual who signs such an order may believe it to be equitable, it could result in fees and taxes that he or she hadn’t planned on paying.
While an attorney may understand the law as it relates to divorce, he or she may not be the most qualified to talk about how a QDRO may impact a person’s finances. In many cases, legal counsel may refer an individual to a certified divorce financial analyst. The analyst may be able to decipher financial jargon, which may make it easier for someone to understand what the agreement really means. The analyst may also work with the plan administrator to make sure that the transfer happens in a timely manner.
Working with a financial adviser may be important because this professional will review a settlement from an objective perspective. For instance, he or she may be able to talk about the impact of taxes or maintenance costs when deciding whether to keep property or a retirement account. Those who are going through a divorce may be thinking with their emotions, which may prevent them from understanding what they may be agreeing to.
Those who are going through the divorce process may also benefit by talking to an attorney. Legal counsel can explain more about the property division laws in the state and may have connections to other professionals who can help facilitate a divorce settlement.