What is a QDRO?

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Retirement accounts are individual in nature, and there is only one name listed on them. This is why during a divorce, many spouses mistakenly believe their IRAs, 401Ks, and other types of retirement accounts are not part of the marital estate. In actuality, they are considered marital property, and they are included in the division of property. Since accounts like these have heavy restrictions on how they are set up and used, a special financial vehicle is needed to divide retirement assets in-keeping with the law. This vehicle is known as a QDRO.

What is a QDRO?

A QDRO (Qualified Domestic Relations Order) is a special court order granting a person the rights to a portion of the retirement benefits of their former spouse which were earned through participation in an employer-sponsored retirement plan. A QDRO is generally prepared during a divorce proceeding but can also be filed after the divorce.

Within a QDRO, the “participant” is the person who earned the retirement benefit, and the “alternate payee” is the person designated to receive a portion of those benefits. A QDRO can provide benefits to the alternate payee while the participant is still alive and can award survivor benefits after the participant dies.

A domestic relations order is not necessarily the same thing as a QDRO. Any family law court can issue domestic relations orders, but these only become “qualified” once they are accepted by the retirement plan. QDROs refer to plans issued by private companies and non-profits. If the employer was a government entity, a different type of order might be required.

The first thing that you should know about obtaining a QDRO is that working with a lawyer is strongly recommended; you should not fill out QDRO forms yourself as there is significant room for error, which could impede your right to benefits. There are also different types of retirement and pension plans, and the specific information that each requires may vary.

For example, if you are seeking a Qualified Domestic Relations Orders in relation to benefits via the Florida Retirement System (FRS) Pension Plan, you will need to contact the division and request the appropriate QDRO forms. At the time your request is made, you must provide the member’s (your ex-spouse) name and Social Security number, the date of your divorce, and the date of your marriage. Next, forms must be completed in full and sent back to the division along with a copy of the final judgment of dissolution of marriage and your settlement agreement.

The division will review the forms. If approved, you will receive notice that the QDRO is conditionally approved. The next step is filing the QDRO with the court.

Note that when you file your QDRO, specific information must be included. At a minimum, the order should state that it applies to the plan participant and you (the alternate payee), include the name and address of both parties, specify the benefit that is to be paid to you, specify the manner of payment and when payments should commence, and contain a court-certified document.

What Happens If I Don’t Have a QDRO?

You may assume that because your divorce settlement and final judgment specify that you are entitled to a specific amount of your spouse’s retirement benefits, you will be paid this amount at the time that your spouse retires–or perhaps even immediately–without any issue. However, this is simply not the case. In fact, if your (ex-) spouse decides to retire before you have submitted the paperwork for a QDRO with the appropriate private or public entity and have had the QDRO approved and filed with the court, then the plan will pay all of the benefits to your ex.

The divorce judge who presides over your case is not responsible for contacting the private or public entity where benefits are held and instructing it to distribute benefits in a specific manner. This is your responsibility.

Why Do I Need a QDRO?

According to Federal law, retirement benefits can only be divided between former spouses if a QDRO has been issued. This means that the language in your divorce decree, even if it clearly states that retirement benefits will be split, may not be enough. While this can sometimes be used as a QDRO, a qualified plan is under no obligation to accept this document before disbursing funds to a former spouse.

Technically, you can get a QDRO after a divorce is finalized, but it is better to obtain this document and file it as soon as possible when getting a divorce. If your spouse, who is the plan participant, decides to retire after the divorce is final and there is no QDRO in place, the plan will begin paying out the full benefit only to them. If a QDRO is later filed, it will only apply to future payments.

A former spouse, who is the plan participant, could also pass away before a QDRO is put in place. If this happens, the retirement plan will still need to honor a QDRO, but it does not need to allow any changes to payment types or amounts that are not permitted by the plan. Finally, a former spouse (the plan participant) could remarry and divorce again. If the second spouse files a QDRO and you have not, this could also impact your benefits.

How Do I Obtain a QDRO?

QDROs are complex legal filings that generally require the assistance of a qualified professional. There are close to 700,000 private retirement plans in the U.S., and each has its own requirements and rules for filing a QDRO.

In general, every QDRO must include four key elements:

  • The name, current address, and social security number of the plan participant and the alternate payee;
  • The exact name of the plan to which the QDRO applies;
  • The percentage or dollar amount of the payments to be made to the alternate payee;
  • The time period for the order or number of payments included.

Speak with an Experienced Pensacola Family Law Attorney

Divorce can be an emotional and complex process. When it comes to asset division, your rights and future financial well-being should take top priority. Unfortunately, drafting and filing a QDRO often requires technical knowledge, and this is not something you want to leave to chance.

Crystal Collins Spencer specializes in handling complex family law cases that involve complicated financial issues. If you are going through a divorce or any other family law matter, Spencer Law can help. Contact our office now at 820-912-8080 to schedule your initial consultation. You may also send us a secure and confidential message through our online contact form.

Do Divorce Rates Increase in the Summer?

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According to a 2016 research study conducted by a sociology professor at the University of Washington, more couples file for divorce in March and August than any other months of the year. With August upon us, you may find yourself in that position as well. Although the study didn’t set out to determine seasonal patterns to divorce, the results were so overwhelming that they were difficult to ignore. The patterns persisted even when the researcher accounted for such things as the housing market and unemployment, which also tend to spike during certain seasons.

Holidays and Summer Vacations Delay Divorce Filings

Even when couples have had irreparable issues for months or years, both parties tend to avoid initiating a divorce during the Christmas and Hanukah holidays as well as when children are out of school for the summer. One reason for this is that even troubled couples view these times of the year as important family time. They may want to try to make some good memories for their children before the inevitable occurs. Couples may also hope that spending extra time together alone or together as a family may bring them closer together.

Holidays are fraught with expectations even in the healthiest of families. They bring out the optimism in couples that maybe this year will be different. The whole family will spend a long vacation together in the summer and everything will be fine. These times of the year often fill people with the expectation of new beginnings, a transition to a happier time of life, or just the novelty of something different from everyday life. Another thing to consider is that it’s socially unacceptable to file for divorce during what people assume should be happy family times.

Unfortunately, the expectations placed on holidays and vacations are often too high and both the husband and wife end up feeling disappointed, disillusioned, and resentful. They now realize the marriage is beyond repair and one of them proceeds with filing divorce papers.

Other Reasons Why Divorces Peak in the Late Summer

Couples who have children together may want to start the divorce proceedings before the school year begins so the entire family can fall into a new routine as quickly as possible. The reason for the higher number of divorces in August as opposed to the rest of the summer is often financial. The couple may have realized after a particularly stressful family vacation in early June that it was no longer working for them but needed a few months to arrange their finances before considering divorce.

Summertime tends to increase the desire in both men and women to become more active and get in shape if they need to. Accomplishing this goal makes them feel better about themselves and want more out of life. They may look at their partner and realize that they have felt miserable in the marriage for years. There’s a realization that time is passing quickly and that staying with their partner may not be the healthiest choice for them in the long run.

Are You Considering Filing for Divorce or Have You Received Papers from Your Spouse?

No matter what time of year it happens or the reasons for it, going through a divorce is never easy. This is true whether you initiated it yourself or you must respond to dissolution papers from your spouse. When you add minor children into the mix, things can become complicated and emotionally charged in a hurry.

Crystal Collins Spencer, Attorney at Law, understands that you’re in a difficult position. As an attorney specializing in family law for more than 30 years, Ms. Collins Spencer has handled numerous complex and high net worth divorce cases for both husbands and wives. She is honored to have earned a rating as AV Preeminent from Martindale Hubbell. This organization recognizes attorneys who display exceptional ethics, professionalism, and legal knowledge.

If you’re facing divorce, don’t try to figure out issues such as division of assets and debts, child support, and child custody on your own. Contact Crystal Collins Spencer, Attorney at Law, instead to request your free legal consultation.

How to Tell Your Children You Are Divorcing

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If you are a parent who is thinking about or is already in the process of divorce, you’re probably concerned about how to break the news to your children. When parents divorce, it has an impact on adult children, friends, and even distant family, but it’s usually minor children who experience the most stress from this event.

Even if your children have been aware of an ongoing conflict in the home, many hold out hope that conditions are going to improve. Once you are certain that you are going to go through with a divorce, it’s time to let them know. One thing that should be front and center throughout this entire process is the needs and feelings of your children. This is a conversation that your children will likely remember for the rest of their lives, so you want to minimize their pain and be as prepared as possible.

Present a United Front. When you do break the news, you and your spouse should try to do this together. You obviously have your differences, but this is one of the times that, if possible, you should come together. It’s not necessary that you go into specifics about who did what, but this is your opportunity to let your children know that things are going to change. You should both try to stress to your children that you are working together on their behalf.

Address All Children at Once. It may be tempting to leave young children out of the conversation, but this has proven time and again to be a mistake. Most experts agree that it’s best to speak to all the children together so that there isn’t a burden on one child to keep secrets from the others. If they all hear the same message at the same time, there can be no confusion.

Discuss Your Plan in Advance. Avoid going into this important conversation without a plan. Speak with your spouse in advance about what you will say and what you won’t. For example, you want to stress that what is happening isn’t their fault and that you both still love them. Blaming or playing a game of good cop – bad cop during this meeting is a bad idea.

Expect a Variety of Reactions. Depending on your children’s ages, their reactions to the news might vary. Some will yell or break down and cry, while others may be worried about how the divorce will impact their needs and schedule. For example, there may be fears about having to move or switch schools. Be ready to handle these emotions and possible objections.

Be Willing to Answer Questions. Leave plenty of time for this discussion, since your children may have some questions. They might want to know about the divorce process or if they will have a disruption in their schedule. Leaving them with unanswered questions will only add to their stress.

Offer Your Support Now and In the Future. Let your children know that you understand that divorce can be difficult and that you care about their needs. If this news comes as a shock to them, they may need some time to process it and adjust to the new schedule. Stress that they can come back and speak with you about this at any time. Depending on the child and the circumstances, you may also want to offer the option of counseling so that they can speak with an unbiased person about their feelings.

Speak with a Qualified Florida Family Law Attorney About Your Situation

Any divorce is emotionally challenging, but it is particularly so when there are minor children involved. You not only have to look out for your best interests but theirs as well. If you are contemplating ending your marriage, there are many factors to consider that you may wish to discuss with an experienced Florida divorce attorney.

Crystal Collins Spencer, Attorney at Law, has more than 30 years of experience representing parties in divorce cases throughout Florida’s panhandle. We have offices in Pensacola, Fort Walton Beach, and Sandestin and are happy to schedule a free and confidential review of your divorce or child custody case.

Contact us now at 850.912.8080 or online to schedule an appointment.

Divorce When You’re a Parent of a Special-Needs Child

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Being the parent of a child with special needs brings with it a blend of challenges and joys. This intense experience can make sustaining a marriage even more challenging, and studies have shown that couples raising a special-needs child tend to divorce at a higher rate than do other couples. Due to the complexity and expense of raising a child with physical or developmental special needs, parents of such children have more to consider when divorcing than do parents of nondisabled children. Below are a few issues to discuss with your attorney when going through a divorce as a parent of a special needs child.

Parents Need to Agree

If there was ever a need for cooperation during a divorce, it is when there is a special needs child involved. There are so many areas that need to be negotiated for the sake of the child, for example, who will the child live with?  This must be determined, and it is in the child’s best interest for the most able person to step into that role. But the other parent is not off the hook.

How much support can the non-custodial parent provide? What will the visitation be for the non-custodial parent?

You will need to be certain that the custodial parent and the non-custodial parent are able and equipped to handle these special considerations. If only one parent is able, will the other parent be willing to provide financially to cover their absence in the form of additional child support?

Agreement

How many areas do you both agree on? Are you on the same page about the potential for this child now and in the future? That will help in mapping out a plan for their care.

Parents need to agree on:

  • Parenting Time – Which parent is best equipped to have the majority of the parenting time and why? For the non-custodial parent, special attention should be given to all parenting arrangements including responsibilities and financing.
  • Therapy – How much will the child need for her lifetime and what will that cost? The cost of that therapy, even if it lasts for a lifetime, needs to be figured into the divorce agreement. A lifecare plan may help provide actual numbers that are essential to planning for the future.
  • Medical Care – Besides therapy, medical care may include doctor visits, specialized alternative medicine appointments, the cost of medication, and the frequency of medical care. Is there any specialized equipment your child needs? Vitamins, nutritional needs, complementary and alternative medical care may be part of her regimen.
  • Child Care – If you child is severely disabled, she may need trained supervision that not everyone can provide. If you are not able to stay home, how are those needs met? If your child needs care, but has milder maladies, supervision should only be entrusted to those with training.
  • Transitioning to Adulthood – Estate planning may be involved in mapping out your child’s transition into adulthood. Not only the parent’s assets, but there may be government or private agency funds available to be added to child support. A financial adviser can be employed to create a special needs trust (if needed) for the child once the parents understand the scope and breadth of the child’s needs after turning 18.

Ensure that child support takes public benefits into consideration

Florida courts calculate child support payments according to the guidelines laid out in the Florida Statutes, section 61.30. Courts are usually required to award an amount within 5% of the result of the formula contained in that law. However, when a child has extraordinary medical or educational expenses, or extraordinary costs associated with caring for a special needs child, courts can go beyond the amounts prescribed by the formula. If you plan to be the primary caretaker of your child, take the time to create a thorough budget that accounts for all the medical, therapeutic, and household expenses involved in raising your child. Your attorney can help you provide documentation of these expenses to present to the court in support of your request.

As a result of his or her disability, your child may be entitled currently, or will be entitled in the near future, to public benefits such as Supplemental Security Income. Ensure that a calculation of child support takes these benefits into account, so that the child is not determined to be ineligible for these benefits due to the amount of child support received.

Consider creating a trust for your child’s care going forward

Most parents do not have to plan to support their children financially throughout their lifetimes. However, if you have a child with special needs, you and your co-parent will need to determine where your child will live, who will provide their care, and the source of funds for this care as they age. These discussions are important to have prior to finalizing a divorce, as it may be necessary to set aside funds at the time of the division of property for this future care. Many parents decide to create a special needs trust, which enables the child to receive additional financial support while also remaining eligible for public benefits.

Create a plan for staying in close communication

Parents of all children must remain in contact after divorce, in order to exchange custody, coordinate holiday schedules, and discuss their children’s education. Parents of special-needs children have an even greater need to keep in touch, as these children often have more frequent appointments with doctors and therapists, requiring parents to coordinate their schedules more carefully. If frequent direct communication with your co-parent seems destined to devolve into conflict, consider using electronic methods, such as the program Our Family Wizard, or a shared Google Calendar, to coordinate schedules.

If you are facing divorce in Florida, seek legal help from a professional who will handle your case with compassion, dedication, and thorough knowledge of the law by contacting the Pensacola family law attorney Crystal Collins Spencer for a consultation, at 850-912-8080, or at our offices in Sandestin (850-424-6683) or Fort Walton Beach (850-200-4652).

Social Media During Your Divorce: Restraint is Key

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Once you put something on the Internet, it’s there forever. And going through a divorce can be so difficult. It can be a challenge to hold back from discussing the hurt and anger you’re experiencing in a public forum, or from trying to make a former partner jealous with news from your exciting new life without them. Read on to learn more about ways to avoid letting social media negatively affect your Florida divorce. For more personalized advice regarding your divorce, call Crystal Collins Spencer Attorney at Law at 850-912-8080.

Social Media Evidence

Social media is essentially a treasure trove of evidence for a spouse going through a divorce. Courtrooms have seen every major social media outlet—Facebook, Twitter, Instagram, Snapchat, Tiktok, and more—used as evidence in divorce cases.

Imagine, for example, someone who is unfaithful in their marriage. This causes their spouse to leave them. If their spouse sees social media postings from their ex or the ex’s affair partner, they could use that in court. Florida is a no-fault divorce state and affairs generally don’t have an impact on divorce proceedings. However, that isn’t the case if the married affair partner uses marital assets to fund the affair. Social media could uncover these spending sprees and help the wronged spouse recoup their losses.

Social media is also an excellent tool for uncovering hidden assets. People with money often want to show it off—they want the validation of those social media likes. If a couple is going through a divorce and one partner is constantly posting new luxury purchases on social media, that’s a red flag for the other partner. If those purchases are funded by marital or hidden assets, the spouse may be entitled to some of that money.

Communication Between Spouses

Digital technology has also changed how spouses and ex-spouses communicate. Most types of social media leave some sort of digital paper trail, allowing conversations and arguments to be used as evidence in court. Consider how text messages containing threats, verbal abuse, or apologies for past abusive behavior could be used in court.

Text messages and emails discussing child custody, child support, and the division of assets can also be very useful in court. If the parties agree to one thing in writing and then insist that such an agreement was never made, text messages and emails can be used to determine what actually happened.

Whenever you send anything to your ex-partner—a voice message, text message, Snapchat, or email—take a second before hitting the send button. Make sure it’s something you actually want to put out there and think about if you’d be comfortable hearing it read aloud in court.

Complications With Child Custody

Perhaps one of the biggest ways that social media has changed divorce is its effect on child custody disputes. Social media has been used time and time again to disprove one party’s ability to parent.

Imagine a parent who is demanding more time with their child and claiming that the other party is withholding the child from them. The other parent has text messages showing that they asked about pickup times, only to be ignored. On top of that, they have copies of social media posts showing that the other parent went out drinking, hanging out with friends, or doing anything other than spending time with their children during their allotted time. If the court sees that a parent isn’t using the time already given to them, they are unlikely to give them more.

The court may also look at social media evidence that suggests a child is being mistreated. Photos or videos of a child being around or directly engaged in risky behavior could lead to a major change in custody. One parent making public disparaging remarks about the other parent could also affect custody proceedings.

Here are some tips:

  1. Present yourself as the responsible adult that you are: When going through a breakup, there is always a temptation to appear to the outside world as though you’re having a great time being single—out every night, partying with friends, and perhaps getting a little wild. This may be an exaggeration of what is actually a fairly sedate life, but it won’t appear so to the outside world. Painting yourself as an irresponsible partier could serve as fodder for a co-parent’s argument that you can’t be trusted with custody of your children.
  1. Remember the wide array of people who can see what you post: It’s smart to make your Facebook page or Instagram account private when you file for divorce. However, this doesn’t mean that your remaining friends or followers won’t share photos or information they see with your ex. You can also delete friends and block followers who were close to your former spouse, but loyalties may shift and change without you realizing it, and information you wish to stay private might not remain so for long.
  1. Displays of wealth or luxury could hurt your case: Social media can lead people to post lavish pictures and updates in order to impress their friends—photos of new cars or an exotic vacation. However, these sorts of displays will certainly not impress a judge if you’re attempting to argue that you are entitled to more money in spousal support payments, or can’t afford an increase in your child support payment.
  1. Don’t add people as friends whom you don’t know personally: If you do make your accounts private, be sure to add only people you know as friends. Private investigators can send you a friend request in order to gain access to photos and posts only your friends can see, and can download and use this information against you in court. You do not have a right to privacy of information you post online and share with someone you’ve added as a friend.

For compassionate, determined, and detail-oriented legal assistance with a divorce or custody-sharing agreement in Florida, contact the Pensacola family law attorney Crystal Collins Spencer for a consultation on your case, at 850-912-8080 (Pensacola), 850-424-6683 (Sandestin), or 850-200-4652 (Fort Walton Beach).

Keep Costs Down in Your Divorce

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Obtaining a divorce in Florida isn’t cheap. Court costs, attorneys’ fees, and even the additional expense of living in a separate household can create a substantial financial burden.  Yet divorce doesn’t have to be prohibitively expensive either, especially if you don’t make it more costly than it needs to be. Avoid making your divorce unnecessarily expensive by keeping the following guidelines in mind.

Choose your battles carefully

When you’ve reached the level of frustration and discord with your spouse that precedes filing for divorce, you may feel tempted to fight your spouse on every request out of a desire to “win” the divorce or to exact some revenge. Alternately, your spouse may be the one who has been overwhelmed with a desire to block every one of your requests regarding the division of your property or custodial time. Decide in advance which issues are most important to you, such as the holidays you most want to spend with your children, or items of particularly high sentimental value you’d like to keep, and save your fight for the things that really matter.

Settle what issues you can up front

It will never be less costly to agree to terms of your divorce and division of property than during the period prior to filing for divorce. Try to work out as much as you can before going to court, where disputes will be much costlier and more time-consuming to resolve. This might be a good stage to consider hiring an attorney to serve as an informal mediator as you work out a settlement agreement for your divorce.

Limit the amount of judicial intervention you seek

After you’ve obtained a divorce, conflicts will inevitably arise regarding the payment of child or spousal support, or compliance with existing court orders. Rather than returning to court each time an issue like this arises, incurring the accompanying court costs and attorneys’ fees, attempt to first negotiate these disputes with your former spouse informally.

If you are searching for compassionate and knowledgeable assistance in Florida with filing for divorce or dividing custody of your children, contact family law attorney Crystal Collins Spencer for a consultation, in Pensacola at 850-912-8080, Sandestin at 850-424-6683, and Ft. Walton Beach at 850-200-4652.