Dividing your property in the most effective way possible is crucially important during your divorce. Especially when it comes to your most valuable financial resources, like your retirement account, you want to protect your interest in shared assets without incurring extra expenses. Retirement accounts and pensions are often the focal point of divorce litigation and a source of secondary financial losses.
A Qualified Domestic Relations Order (QDRO) gives divorcing spouses an opportunity to fairly split a pension or retirement account without needing to pay early withdrawal fees or other penalties. Many people feel a pressing need to get the QDRO drafted and approved by the courts after a divorce but feel less worried about filing the paperwork with the plan administrator right away after their divorce.
Some people might wait months or occasionally forget to file the QDRO for years. Does the New York statute of limitations for contracts apply to QDROs after a divorce?
The courts have ruled on this matter already
Sometimes, couples have unique questions about their upcoming divorce that are open to interpretation. Other times, there is clear guidance either in state law or in established family court president. When it comes to a QDRO for your retirement accounts or pension, there is an important court ruling on the matter.
The New York courts have already determined that the contract statute of limitations does not apply to a QDRO. Even if someone waits years to file the paperwork, they still have a right to receive their designated share of the pension or retirement account.
There are still risks in delayed filing
While the law will not prevent you from filing your QDRO long after your divorce, you may not receive as much as you should if you wait too long. Anything from an investment mistake by the company managing the account to your ex making a withdrawal to cover personal expenses could diminish the account before you file the QDRO.
Finalizing the division of your assets shortly after your divorce will help you avoid complications and ensure that your portion of the account becomes yours officially. Learning more about QDROs, including the rules that apply to them, will help you plan for life after your New York divorce.