Retirement & Pension Division Flashcards
7 cards from real CDA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Retirement & Pension Division flashcards as text
A spouse claims that their 403(b) plan is separate property because contributions began before marriage. What document is most useful to establish the marital portion?
Answer: Account statements showing the balance on the date of marriage
Account statements showing the balance at the date of marriage allow a CDA to calculate the marital increment versus the pre-marital separate property balance.
Which of the following is NOT a requirement for a domestic relations order to qualify as a QDRO?
Answer: It must be signed by a judge or court official
A QDRO does not need to be signed by a judge; it must be a domestic relations order issued under a state domestic relations law, but many plans accept attorney-prepared orders once entered by the court.
The 'deferred distribution method' (share of payments as received) for pension division means the alternate payee:
Answer: Waits and receives their share only when the participant actually retires and collects benefits
Under the deferred distribution method, the alternate payee's benefit is contingent on the participant's actual retirement and benefit commencement, creating ongoing risk.
Social Security retirement benefits in divorce are addressed by which rule regarding marriage length?
Answer: A 10-year marriage qualifies an ex-spouse to claim up to 50% of the participant's Social Security benefit
An ex-spouse may claim up to 50% of the participant's Social Security retirement benefit if the marriage lasted at least 10 years and the ex-spouse is unmarried.
When a CDA uses the 'offset method' for pension division, the non-employee spouse typically:
Answer: Keeps other marital assets of equivalent value in lieu of a share of the pension
The offset method allows the employee spouse to keep the full pension while the other spouse receives other assets of equivalent present value, avoiding a QDRO.
If a 401(k) has a loan outstanding at the time of divorce, how is the loan typically treated for division purposes?
Answer: The loan reduces the net account balance available for division
A 401(k) loan is subtracted from the gross account balance to determine the net available balance for division, since the loan represents the participant's obligation.
Pension benefits earned by a spouse prior to marriage are generally treated as:
Answer: Separate property not subject to division
Benefits accrued before the marriage date are typically classified as separate property, with only the marital portion (accrued during marriage) subject to division.