Legal Question in Family Law in Indiana

Re: union pay out through divorce

The court that entered your divorce decree also needs to enter a Qualified Domestic Relations Order. Until your attorney does that, you need to protect yourself by sending a certified copy of the decree to the union or employer who will pay the pension. If you were not represented by counsel, then the attorney who represented your husband should have also done the paperwork for the qualified order. You also need to get from the payor a copy of what it needs to process the pension change in case you have to find an attorney to write that up now.

Most pensions make you an immediate offer to pay your share out - and they are required by federal law to segregate your share from your former spouse's share immediately as of the date of separation or the decree, as determined in the qualified order or the settlement. If you take the monies out of the plan without rolling it over, you may get stuck for an early withdrawal penalty if you do not make the election soon enough after the decree is entered. If you do not have to pay the penalty, you have to pay the income tax due on the part you take out - or on the distributions after he retires (or you are entitled to begin taking periodic payments).