GLASTONBURY, CONNECTICUT · FAMILY LAW + FAMILY-VIOLENCE DEFENSE

Retirement Accounts, Pensions, and QDROs in a Connecticut Divorce

Retirement assets are frequently the largest item in a Connecticut marital estate after the house, and they are divided differently from everything else.

They are divisible

Under C.G.S. §46b-81 the marital portion of a 401(k), pension, IRA, or similar asset is part of the estate the court can divide. For an account that existed before the marriage, determining the marital portion is its own exercise.

The division takes a separate order

This is the part people miss. The divorce judgment says the account is divided. It does not actually divide it.

An employer-sponsored plan — a 401(k), a pension — generally requires a qualified domestic relations order: a separate order, drafted to the plan’s requirements, entered by the court and then accepted by the plan administrator. Until that happens, nothing has moved.

An IRA is handled differently and does not require a QDRO, though it still requires correct execution to avoid a taxable event.

The failure that surfaces years later

The divorce finishes. Everyone moves on. The QDRO is never drafted, or is drafted and never submitted, or is submitted and rejected for a technical defect that nobody follows up on.

The problem appears at retirement, at a remarriage, or at a death — when the former spouse’s claim is contested, the account has been rolled over, or a new spouse is the named beneficiary. At that point the remedy is harder, more expensive, and sometimes unavailable.

If your judgment divided a retirement account and you are not certain a QDRO was entered and accepted by the plan, confirm it now. That is a short task today and a serious problem later.

Details worth getting right

Survivor benefits on a pension — whether the former spouse is protected if the participant dies first — are a separate question from the division itself, and are frequently overlooked.

The valuation date and whether gains and losses are shared between judgment and transfer.

Who pays the QDRO preparation cost, which the judgment should say.

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