Individuals in Minnesota may be entitled to spousal or child support payments as part of a divorce settlement. However, there is a chance that the person ordered to make those payments won’t live up to his or her obligation to do so. Those who have not received the money that they are owed may seek a qualified domestic relations order (QDRO) to compel payment. A QDRO makes it possible for a judge to direct funds from the paying spouse’s retirement plan to the recipient spouse.
It is important to note that such an order only applies to qualified plans such as a 401(k) or 403(b). Those who are seeking a QDRO are encouraged to consult with an attorney or a financial adviser before doing so. This is because transferring funds from a retirement plan may trigger a taxable event, and there may be costs related to drafting and executing the order.
In some cases, retirement plan administrators will not allow lump-sum payments to be made from an account. Therefore, any amount that is past due may need to be paid over a period of several months or years. In addition to obtaining past or future spousal or child support payments, a QDRO may allow a person to seek reimbursement for legal fees incurred while pursuing a past due balance.
A court may use many factors when determining if a person is entitled to alimony payments. Those factors may include the length of a marriage, an individual’s age and a person’s ability to earn money after a relationship ends. An attorney may be able to help a person obtain a divorce settlement that includes spousal support payments. Individuals may also be entitled to a family home or other joint assets in a divorce settlement.
