Qualified plans, such as 401(k), profit sharing, defined benefit pension and money purchase pension plans, have defined benefits or defined contributions. A qualified domestic relations order, or QDRO, is required when dividing qualified plans.
The emotional upheaval of a divorce is no time to be learning money basics and selecting professional advisors. Preparing now isn’t cynical – it’s smart.
In working through your divorce, don’t forget your most valuable assets: your life and your health. Both directly affect your ability to earn income and to care and provide for yourself and your family. Be certain your insurance cover your new, single-earner needs.
A strong base of financial knowledge can prepare you for managing your finances alone, regardless of when that time comes.
Few times of crisis require immediate, clear-headed financial thinking like a divorce. From the time of the split to the signing of the settlement, both parties will face making those decisions in a whole new context – alone and with an adversary. Take a long-term view of self-preservation, not a short-term view of punishment or least conflict.