Since the beginning of the industrial revolution, American companies have provided workers with pension and retirement benefits as a normal part of their compensation package. Today, the value of these pension and retirement benefits is estimated to be over $15 trillion dollars and covers over half of the American workforce. As a result, these retirement savings represent the bulk of many clients’ assets and dividing retirement accounts is often one of the most important aspects of divorce proceedings.
As part of a property division in a divorce or legal separation, a qualified domestic relations order (QDRO) effectively splits a retirement plan or pension plan by recognizing joint marital ownership interests in the plan, specifically the non-employee spouse’s interest in the asset. Mistakes in drafting a judgment of divorce/dissolution and drafting a QDRO are very common and can be extremely costly for your client. Practitioners that fail to appreciate the key nuances of QDROs may commit errors that can result in loss of significant benefits to the non-employee spouse. Considering the prevalence of pitfalls, the potential impact of errors and the high liklihood that divorce actions will involve a QDRO, practitioners must anticipate and avoid mistakes in drafting the judgment of divorce/dissolution and the QDRO.
In this CLE course, Joshua D. Ferraro provides numerous key practice points about QRDOs, defined contribution plans, defined benefit plans and cash benefit plans so you can avoid making key mistakes with your client during divorce. When you are done viewing this course you will be able to: navigate ERISA & the laws that govern retirement assets, recognize the different types of retirement assets and how they work, understand the procedures & substance of how these retirement benefits are divided, valuate plans & distinguish marital versus non-marital components and avoid common pitfalls. Additional issues discussed by Mr. Ferraro include: how to value defined contribution plans, how the pre-marital share is divided, how to calculate defined benefit plans, the Qualified Joint Survivor Annuity (QJSA), frozen vs. unfrozen pension accounts, how the interest will be assigned in a defined benefit plan, survivorship benefits, military qualifying court orders and IRAs.
Joshua D. Ferraro assists attorneys and individuals with Qualified Domestic Relations Orders (QDROs). Josh initially joined Lesser, Lesser, Landy & Smith in 2004, immediately after graduating from law school and passing the Florida Bar. After leaving the firm to join his father and brothers at the Ferraro Law Group, he returned to Lesser, Lesser, Landy & Smith to assist clients throughout the Treasure Coast with claims arising from personal injury and wrongful death as well as those involved in intra-family disputes involving a contested will or trust. In addition to his litigation practice, Josh continues to advise family law attorneys throughout Florida and the country on the process of distributing retirement benefits in compliance with federal law. Outside the practice of law, Josh donates a substantial amount of time to working with local charitable organizations.