Legal Question in Family Law in Louisiana

Re: QDRO Valuation

Your 401K will be partitioned follows......number of years you contributed to the 401K while married, divided by the total number of years you contributed to the 401K at the time you retired. That percentage is then multiplied times the monthly benefit you are entitled to receive, then divided by 2.

The absolute maximum he is entitled to is 1/2.

Therefore, if you worked 40 years and retired, and were married the entire time you contributed to the retirement, then 40 divided by 40 = 1 (100%). That is multiplied times your monthly benefit and divided by 2 to get his share.

For example, if you were entitled to draw $2,000 a month, then he is entitled to draw $1,000 a month.

If your 401K can be distributed prior to your retirement, then he would be entitled to his lump sum at the "time of distribution." So, if at the time the community ended, his lump sum share would be $10,000, but at the time of distribution, his lump sum share had been reduced to $5,000 because of bad investments or a slow market, then all he gets is $5,000.

At the same time, if his lump sum would now be worth $100,000 at time of distribution, then he gets to take advantage of the growth of his share.

Remember, if you were not retired when the community ended, he is ONLY entitled to 1/2 of the growth (interest or dividends or however it grew)of the 401K principal in the plan on the date of the marriage, until date the community ended, PLUS 1/2 of the moneys contributed by you or the company during the marriage, and the growth of those contributions made during the marriage.

It sounds complicated, but there is a formula that ALL companies know, and your lawyer or your company should be able to give you what your ex is entitled to in no time at all.