QDRO Webinar- Tips and Traps when Dividing Defined Contribution Plans: the Pre-Marital Money Problem and Offsetting Accounts

On March 15, 2018 Attorney Erwin Kratz presented a webinar which detailed practical approaches to solving the various complications that can arise when dividing defined contribution plan accounts, including approaches to dealing with the pre-marital money problem and opportunities presented when offsetting accounts against each other. In this Webinar we addressed:

  • Where and how to get an accurate account balance on the date of marriage (DOM) when faced with the pre-marital money problem
  • Adjusting the DOM balance for earnings through the end of the marital community, including how to estimate earnings on pre-marital money:
    • based on the way the account was invested on the date of marriage or on the date of division, or
    • using broad proxies (such as the S&P 500 index, target date retirement funds, and the DOL’s VFCP Online interest calculator)
  • How to determine which account your client is best off taking and which they are best off giving away when offsetting the balance in one account against another.