Advanced Underwriting Consultants

Ask the Experts – August 11, 2014

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers. Here’s the question of the day.

Question: My client participates in a defined benefit plan that provides a joint and survivor annuity after retirement. If my client and his wife divorce, what happens to the potential spousal benefit?

Answer: If divorce occurs before the annuity payments begin, the qualified joint survivor annuity is usually cancelled, but it’s best to check with the plan administrator. That doesn’t mean the ex-wife will get nothing though. She may still be able to get a qualified domestic relations order (QDRO) that allows her to access a portion of the plan.

Have a question for the professionals at AUC? Feel welcome to submit it by email. We may post your question and the answer as the question of the day.