How to Register a QDRO from a Foreign Divorce
I need to split my 401K as part of my divorce decree done in Brazil. Fidelity, the account holder, instructed me and I prepared a QDRO automatically using Fidelity's web-based tool. Recently I submitted my divorced decree translated by an approved translator and notarized by the US Embassy in Brazil, but Fidelity rejected it saying it "cannot accept the order because it was not executed in a State recognized by ERISA". So it seems I need to register my Brazilian divorce as well as my QDRO in a US Court.
I got married in Brazil and then spent 15 years in California with my wife. We moved back to Brazil 4 years ago and have been divorced for almost 1 year. Both of us still live in Brazil. Assets were already divided and we do not own any assets in USA.
Can someone provide me with instructions of what do I need to file and where? Can I do it myself? If not, is there an attorney out there with previous experience in dealing with this scenario that you can recommend? Do I need to do it in California... or can I do it in another State?
Re: How to Register Qdro and Foreign Divorce
might it not be simpler to divide/pay out some other asset to balance the equation and get that resolution entered in writing locally?
Re: How to Register Qdro and Foreign Divorce
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HRinDEVON
might it not be simpler to divide/pay out some other asset to balance the equation and get that resolution entered in writing locally?
No. The amount I would withdraw would be subject to a higher tax rate than hers, as it would be added to my yearly salary as Income on my SSN. However, she does not agree in paying this tax and most certainly I won't pay it for her.
Re: How to Register Qdro and Foreign Divorce
This site deals with US law...your issues might be totally different ..
Withdraw different funds from something else ?
What does your order say as to who has what burden....generally the person who wants the money has the practical duty of jumping thru the steps .
Impossibility of doing as the order says to do is often a good reason to punt under most states law.
ERISA is not a sovereign entity that recognized acts of other sovereign entities ...Someting does not add up
Re: How to Register Qdro and Foreign Divorce
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msoares
...but Fidelity rejected it saying it "cannot accept the order because it was not executed in a State recognized by ERISA". So it seems I need to register my Brazilian divorce as well as my QDRO in a US Court.
That would involve starting an ancillary proceeding in the U.S., getting a QDRO entered, and filing it with the plan administrator. If you and your ex- no longer have ties to any particular U.S. state, you may want to start by consulting a lawyer in the state where the plan administrator is headquartered.
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Quoting msoares
Can I do it myself?
What's your travel budget? How comfortable are you with figuring out court procedures?
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Quoting msoares
If not, is there an attorney out there with previous experience in dealing with this scenario that you can recommend?
It actually shouldn't be particularly difficult if both you and your ex- are on the same page, but you can look for a lawyer through a membership organization such as the AAML.
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HRinDEVON
This site deals with US law...your issues might be totally different
I recognize that you don't understand what we're talking about, but this is a U.S. legal issue. You should leave the posting to people who understand the question and legal issues.
Re: How to Register Qdro and Foreign Divorce
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Mr. Knowitall
What's your travel budget? How comfortable are you with figuring out court procedures?
Thanks a lot for your answers.
I do have to go to USA sometime between now and end of January. So I was planning on taking advantage of the opportunity and reduce the financial hit.
If this would mean for me to go to Court and file the papers (knowing up front what they are... and that's part of the issue right now), then I wouldn't mind doing it. Having to go to Court multiple times in a period over 3 days is not something I can do and then I would prefer to go to a lawyer if this would not cost me an arm and a leg.
Re: How to Register Qdro and Foreign Divorce
assuming all it takes is to domesticate the foreign divorce and QDRO into some relevant step and for sake of discussion let's say that's $5000 of legal costs...who pays that in context of your order?
Re: How to Register Qdro and Foreign Divorce
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HRinDEVON
assuming all it takes is to domesticate the foreign divorce and QDRO into some relevant step and for sake of discussion let's say that's $5000 of legal costs...who pays that in context of your order?
The cost is split, 50/50.
For that amount of money, though, I'd rather do it myself and enjoy some time in USA while figuring out the forms to fill. As I already have the divorce documents translated and notarized by the consulate, already have the QDRO from Fidelity signed and notarized as well, then it should be a matter of figuring out the proper forms to register my divorce in court and submit the QDRO.
Thanks for your time.