In this series, the Andersen Law PC blog is spelling out the 12 steps of divorce one month at a time. This month, we wrap it up with Step 12: QDROs and other post-decree issues.
(To read the process in a more personalized, real-world context, follow the tales of two divorces: Art and Angela Aingel, who take the high road, and Draco and Desdemona DeVille, whose choices send them into unnecessary drama, court battles and mounting costs.)
If you want to discuss your specific situation, feel free to call us at 720-922-3880 or email beth@andersenlawpc.com. We are happy to walk you through your next steps in a complimentary consult.
Here are the 12 steps of divorce we have covered:
- serving and filing a petition for divorce
- responding to the petition
- sworn financial statement, disclosures, and parenting classes
- initial status conference
- discovery and depositions
- professionals: CFI, PRE, vocational evaluator, appraisals
- motions to compel and telephone conferences
- temporary orders
- mediation
- parenting plans and separation agreements
- witnesses, pretrial deadlines and permanent orders
- QDROs and other post-decree issues
Step 12 of Divorce: QDROs and Other Post-Decree Issues
Even after the court signs your decree, your divorce is not completely “done.” Colorado divorces often require several post-decree tasks to finalize financial and legal matters, protect retirement accounts, and ensure long-term clarity for both parties.
Below are the key items most people must complete after their divorce is official.
Update Your Estate Planning Documents
Once you are divorced, Colorado law automatically invalidates any mentions of your former spouse in your will. This helpfully prevents them from benefitting from your estate, or making medical or financial decisions on your behalf. However, this also means that you need to create new estate planning documents, including:
- Last Will and Testament
- Medical Durable Power of Attorney
- Financial Power of Attorney
Even with your former spouse being automatically removed, you still need to update these documents. This is especially important if your backup beneficiaries or representative was someone associated with your ex. This ensures that the right people control your estate and make the best financial and medical decisions if you are unable to.
Change Beneficiary Designations on Investments and Retirement Plans
Your will does not control beneficiary-designated assets. That means you must update designations directly with each plan or company for:
- Retirement accounts (PERA, FERS, 401(k), IRA, etc.).
- Life insurance policies.
- Investment accounts.
- Employer-provided benefits.
If you don’t, your former spouse may still inherit these assets despite the divorce. You’ll also want to ensure that any automatic contributions to accounts are adjusted appropriately.
Complete Your QDRO (Qualified Domestic Relations Order)
If retirement funds are being divided, you will need a Colorado Qualified Domestic Relations Order, or QDRO, which is a specialized order allowing a spouse’s retirement benefits to be transferred to the other without tax penalties.
A QDRO is complex and should be prepared by a QDRO specialist such as a CPA or tax attorney. QDROs also must:
- Comply with IRS requirements.
- Meet the retirement plan administrator’s rules.
- Be signed by a judge.
Once approved and processed, your share of funds is transferred into a retirement account in your own name. If you don’t already have your own retirement plan, it’s a good idea to consult with a financial advisor who can help you set up the right retirement account for your needs and guide you through getting the QDRO funds properly dispersed in your account.
Follow Post-Decree Deadlines
Your Separation Agreement and Parenting Plan will include several deadlines you must follow such as:
- Listing a shared property for sale.
- Signing over car titles.
- Closing joint accounts.
- Exchanging personal property.
- Submitting receipts for shared children’s expenses. (Be sure to communicate via a communication tool like Talking Parents or OurFamilyWizard to create a clear record of communication and help reduce conflict.)
- Reimbursing expenses within a set timeline.
Immediately put all deadlines on your calendar so you don’t miss them. Doing so can lead to disputes or even contempt of court.
Moving Forward After Divorce in Colorado
Post-decree tasks can feel tedious, but they’re essential for creating stability and avoiding future legal issues. Completing these items ensures that your finances are protected, your wishes are honored and your transition into post-divorce life is smooth and secure.
Need help with post-decree issues or a QDRO?
Contact Andersen Law PC at 720-922-3880 for a free consultation. You can also explore our blog, Facebook page, YouTube videos and monthly newsletter for more family law and divorce guidance.
