Holds

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ntang
Posts: 31
Joined: Fri Mar 02, 2018 12:01 am

Holds

Post by ntang » Fri Mar 02, 2018 12:30 am

Will a plan put a hold on paying any benefits if served with a divorce judgment?

lduffy
Posts: 29
Joined: Thu Mar 01, 2018 10:15 pm

Re: Holds

Post by lduffy » Fri Mar 02, 2018 1:55 am

If served with a divorce judgment that shows an award to a nonparticipant spouse, most plans will place a temporary hold on the participant’s account. The judgment will be treated as a “domestic relations order.” For private plans which are governed by federal law, you will still need to prepare, file and serve on the plan a filed “qualified domestic relations order” to secure the nonparticipant spouse’s interest in the plan. For military and federal employees, no hold will be place until they are served with an acceptable domestic relations order.

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