Recently, we spoke of QDROs as a tool used to distribute retirement accounts. Another tool that is less often used is known as an immediate offset. It is less often used because there must be other assets of similar size that one can use to offset the retirement plan. Consider the following example
ITEM HUSBAND WIFE
Marital Home $100,000.00
Husband’s 401(k) $100,000.00
Other assets/liabilities $2,500.00 $2,5000.00
Total $102,500.00 $102,500.00
The retirement account was important for the Husband to keep intact from any claim of the Wife. She could have insisted on getting $50,000 of it through a QDRO, but the Husband offered an immediate offset by giving his ½ share of the home to the Wife, which was important to her. Note that the totals are the same on both columns of the spreadsheet
This was the result of negotiation, but it could also have been a result at trial. The key is the existence of other assets to immediately offset the marital value of the retirement plan.
For more information about marital property division and your divorce, call the Men’s Rights Law Firm at 866-995-0166 or 239-829-0166 today.