We’ve determined that 40% of my teacher’s pension is marital, so STBX is entitled to 20%. We’re planning to get a QDRO to have the state pay him 20% each month. His share works out to around $400/month. However, it’s been 13 months since we separated, and his lawyer says I owe him pension for that period. He wants a $5,200 cash payment. Is it true that I have to pay him for the previous 13 months?
No, you do not have to pay him for the last 13 months. The QDRO will account for passive gains and losses from the date of separation to the date of distribution.
Thank you so much for your reply. I’m not sure what this means:
Does that mean the QDRO will order me to pay $5,200 in cash?
Does it mean the QDRO will adjust the amount owed to SBTX up from $400 to some higher amount (say, $450), so that he will get paid his $5,200 over time?
Or does it mean something else. (Ideally, I wouldn’t have to pay him the $5,200, because that’s going to be kind of a hardship.)
No, it does not, it means if the value of the account changed, increasing the monthly payment that will be accounted for in the payments when they commence.
There should be no cash payout.
Again, thank you very much for your answer!
My own lawyer agrees with STBX’s lawyer that I am obligated to pay him 20% of my pension for every month since the date of separation (13 months at this time) until a QDRO takes effect. Yet you’re saying the opposite. I like your answer better But what am I supposed to do when my own lawyer wants me to pay STBX $5,200 (and counting)?
My answer may change, is the plan in payment now? Meaning are you receiving monthly payments presently?
Ah, yes, I am retired (I’m 75 years old, and my 78-year-old husband just up and decided to go live with an old girlfriend!), so I am receiving payments. Does that change things?
Yes, unfortunately it does, and I concur with the other two attorneys.
Well, darn, that’s too bad. But thank you very much anyway for your answers – it gives me peace of mind knowing that you concur.
You are most welcome. I wish you the very best!