NJSBA Family Law Section

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  • 1.  payment of cs arrears from pension

    Posted 11-02-2017 11:51 AM
    Hi, 

    Looking to settle a divorce case where there is a substantial portion of child support arrears. Husband has a pension which wife will already get a portion of. Is there a way to also negotiate as part of division of pension, a direct payment to wife from pension for child support arrears? If yes, is there specific language i need to use for this? and does this require a separate QDRO ? 

    Thank you in advance
    Maritza

    -- 
    Maritza Rodríguez
    Rodriguez Law Firm, LLC
    744 Broad Street
    16th Floor
    Newark, NJ 07102 
    Phone: 862-241-1228
    Fax: 862-250-6301


    New Brunswick Office *By appointment Only
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    New Brunswick, NJ 08901





  • 2.  RE: payment of cs arrears from pension

    Posted 11-02-2017 12:15 PM

    Yes, I have had this issue and Troyan told me it can be done. They can give you the language

     

    Robert E. Goldstein, Esq.
    Drescher & Cheslow, P.A.

    610 Bridge Plaza Drive

    Manalapan, NJ 07726

    (732) 972-1600
    Fax (732) 972-0038
    E-mail: [email protected]

     

    Visit my personal website:  www.mydivorcelawyernj.com

    Member, Middlesex County Bar Association,  Monmouth Bar Association, New Jersey Association for Justice and New Jersey State Bar Association

                                     

     

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  • 3.  RE: payment of cs arrears from pension

    Posted 11-02-2017 12:20 PM

    Seems to me you can negotiate whatever you want, but almost any release from a pension will require a QDRO. The bigger issue is that the rollover to wife would usually be a non-taxable event, whereas releasing funds for child support will trigger a taxable event to husband and given age issues, even a penalty.

    I guess you could fashion an agreement which gives her a larger amount in a rollover with a simultaneous credit to husband. Just don't attach that to the QDRO. Then she owes any taxes on withdrawal.

    ccs




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  • 4.  RE: payment of cs arrears from pension

    Posted 11-02-2017 12:52 PM

    It depends.

    Is the pension defined benefit or defined contribution?

    Much easier if defined contribution because you can get a lump sum. 

    Also, if your client takes a direct distribution, you can avoid the 10% penalty.

    If defined benefit- is it in pay status?  If not, you cannot get any funds released until his earliest retirement date.  If it is in pay status- you can only get the funds released at the rate of monthly amount of the benefit.

    Under either scenario, you definitely need a QDRO and make sure to keep in mind that the pension is pre-tax and child support is post-tax. 

     

    Jamie K. Von Ellen, Esq.

    Wolkstein, Von Ellen & Brown, LLC
    959 S. Springfield Avenue
    Springfield, New Jersey 07081
    Phone (973) 376-1114 | Fax 973-376-6665
    [email protected] | www.wvblaw.com

     

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  • 5.  RE: payment of cs arrears from pension

    Posted 11-02-2017 03:32 PM
    If the parties agree, the husband or his attorney should contact the benefits specialist at his employment - maybe do a conference call so that you all hear the same answer.  They should be able to confirm if this can be done.  I believe it would require a separate QDRO but you should ask them that question as well.  Ultimately, the benefits specialist will make those decisions.  Good luck.

    Roz


    Of Counsel to Rotolo Karch Law  

    ROSALYN METZGER LLC
    Attorney/Mediator, PA Private Practice  
    908-310-0356  |      [email protected]


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