“Someday” and “Maybe” Numbers: The Challenge of Dividing Retirement Assets Part 3

“Someday” and “Maybe” Numbers: The Challenge of Dividing Retirement Assets Part 3 | Rachel Alexander

{4:00 minutes to read} In Part 2, we discussed marital vs non-marital retirement assets and how some of those assets require an actuary or other expert to figure out the “present value” before the asset can be divided.

We now arrive here: How do folks equitably divide these assets? Particularly because the present value doesn’t actually exist in a divisible form. It’s a theoretical, projected number!

Below are some popular options:

QDRO (NJ QDRO Overview)

A court order goes to the plan administrator, directing it to divide the asset in the way set forth in the order. This method avoids any tax consequences pursuant to this division at the time it is made.

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