Lawyers Without Billboards

QDRO Nightmares: Divorce Retirement Mistakes to Avoid | Lawyers Without Billboards S2-Ep22

Shewmaker & Lewis Season 2 Episode 22

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0:00 | 28:06

Retirement accounts can become one of the most confusing and expensive parts of a divorce… especially when QDROs are involved.

In this episode of Lawyers Without Billboards, the team at Shewmaker & Lewis dives deep into the world of QDROs (Qualified Domestic Relations Orders), retirement account divisions, pensions, gains and losses, plan administrator headaches, and the costly mistakes attorneys and divorcing parties make all the time.

Jimmy, Patty, and Alexa break down practical QDRO “practice points” that can save people thousands of dollars and months of frustration, while Steve provides comic relief and repeatedly declares this “the most boring podcast ever.” 😄

From pre-approval mistakes to undividable retirement plans, delayed QDRO disasters, and confusion over gains and losses, this episode is packed with real-world insights for anyone navigating divorce and retirement division issues.

🎧 Whether you're divorcing, practicing family law, or just enjoy hearing Steve slowly unravel during technical legal discussions, this episode delivers.

⏱️ Chapters

 00:00 – Welcome to Lawyers Without Billboards
 01:06 – What are QDRO practice points?
 02:44 – Why pre-approval matters
 05:41 – Understanding model language
 09:21 – Retirement plans that cannot be divided
 10:50 – Gains and losses explained
 15:17 – Problems with old valuation dates
 17:17 – Why lawyers aren’t financial planners
 20:35 – Doing your homework during discovery
 23:22 – “Troublemaking provisions” to avoid
 24:15 – Why parties should always review QDROs
 26:30 – Steve declares this the “worst podcast ever”
 27:29 – Closing thoughts 

🔔 Subscribe for candid conversations about family law, relationships, and the legal system - without the billboards.

🎙️ Hosts: Steve & Patty Shewmaker, Jimmy & Alexa Lewis
 🎧 Watch here:https://youtu.be/NcprnTFIObQ or listen on Spotify, Apple Podcasts, Google Podcasts, and more.

📩 Contact: pshewmaker@shewmakerandlewis.com
| (770) 939-1939
🌐 Website: https://www.shewmakerandlewis.com

🎧 Podcast Library: https://shewmakerandlewis.com/lawyers-without-billboards

🎼 Music by Ben Hernandez – Dragonsong Productions
🎥 Produced by: Bleeding Edge, Inc.
🎬 Audio & Video Production: Rob Burgner
📍 Recorded at: Shewmaker & Lewis, Atlanta, GA

00:00:06 Narrator

Welcome to Lawyers Without Billboards, where we break down family law and other areas of the law.

00:00:12 Narrator

No gimmicks, no legal jargon, just real unfiltered talk from real lawyers.

00:00:17 Narrator

Join your hosts, Steve, Patty, Jimmy and Alexa, partners at Shoemaker and Lewis, a law firm based in Atlanta, Georgia.

00:00:26 Narrator

Every episode they tackle the legal questions that matter most.

00:00:30 Narrator

divorce, custody, child support, alimony, and everything in between.

00:00:35 Narrator

They'll pull back the curtain to give you real insights on what happens inside the courtroom and beyond.

00:00:40 Patty Shewmaker

Here we are.

00:00:42 Patty Shewmaker

Lawyers without billboards.

00:00:45 Patty Shewmaker

Welcome back.

00:00:45 Patty Shewmaker

Yeah.

00:00:46 Patty Shewmaker

Do we have a no billboard?

00:00:47 Patty Shewmaker

No billboards.

00:00:48 Alexa Lewis

Still no billboard.

00:00:49 Alexa Lewis

No, it's been how many episodes now?

00:00:51 Alexa Lewis

20, this 21?

00:00:52 Alexa Lewis

21 episodes, still no billboards.

00:00:54 Alexa Lewis

Steve's got one going in.

00:00:57 Patty Shewmaker

You got a billboard in your wood shop?

00:00:58 Speaker 4

No.

00:00:58 Alexa Lewis

Or are you creating one?

00:00:59 Jimmy Lewis

He's making one.

00:01:01 Steve Shewmaker

None of these things are true.

00:01:02 Patty Shewmaker

All right.

00:01:03 Alexa Lewis

You have a wood shop.

00:01:03 Alexa Lewis

That's true.

00:01:04 Steve Shewmaker

That is true.

00:01:05 Patty Shewmaker

So what are we talking about today?

00:01:06 Jimmy Lewis

We are talking about quadro practice points.

00:01:09 Patty Shewmaker

Boring.

00:01:11 Jimmy Lewis

I'm sitting right here.

00:01:14 Alexa Lewis

I'm aware.

00:01:16 Jimmy Lewis

This is a follow-up.

00:01:17 Jimmy Lewis

Do we want to let them leave and we'll just run?

00:01:19 Patty Shewmaker

This episode?

00:01:20 Patty Shewmaker

Oh, can we?

00:01:20 Steve Shewmaker

No, we'll just sit here and be quiet.

00:01:22 Patty Shewmaker

This is a follow-up to the episode that we did talking about dividing retirement accounts and the introduction to QADROs, qualified domestic relations orders.

00:01:32 Patty Shewmaker

And as we were going through the episode, there's a lot of things that we need to point out to both parties going through a divorce and other attorneys and people who are just, you know, want to nerd out.

00:01:46 Patty Shewmaker

and talk about Quadros and things, practice pointers.

00:01:49 Patty Shewmaker

So Jimmy, take it away.

00:01:52 Patty Shewmaker

Take it away, dear.

00:01:53 Steve Shewmaker

All right.

00:01:53 Steve Shewmaker

Are you a nerd, Jimmy?

00:01:55 Patty Shewmaker

Yes.

00:01:56 Alexa Lewis

Quadro nerd.

00:01:56 Jimmy Lewis

With some things.

00:01:57 Alexa Lewis

Wrote a book.

00:01:58 Steve Shewmaker

Quadro nerd.

00:01:58 Steve Shewmaker

A little known fact that I've seen the movie Revenge of the Nerds like over 150 times.

00:02:03 Alexa Lewis

I've never seen it.

00:02:04 Steve Shewmaker

I did work.

00:02:05 Alexa Lewis

Was Jimmy in it?

00:02:06 Steve Shewmaker

He could have been.

00:02:08 Steve Shewmaker

Doubted.

00:02:09 Steve Shewmaker

I worked in 1984.

00:02:11 Steve Shewmaker

I worked in a movie theater.

00:02:13 Steve Shewmaker

And I had to see it.

00:02:14 Steve Shewmaker

So I saw it over 150 times.

00:02:16 Patty Shewmaker

You had to see it at over 150 times.

00:02:18 Alexa Lewis

Yeah, you can work at a movie theater and I have to stand in that particular theater at that particular time.

00:02:23 Alexa Lewis

Much of movie 150 times.

00:02:25 Alexa Lewis

Right.

00:02:25 Alexa Lewis

Are you telling us you were assigned to that theater?

00:02:27 Steve Shewmaker

Yes.

00:02:28 Alexa Lewis

They were like, yeah, you're the guy.

00:02:29 Alexa Lewis

You just watched the Revenge of the Nerds.

00:02:31 Alexa Lewis

You fit that description.

00:02:32 Steve Shewmaker

That's me.

00:02:33 Jimmy Lewis

Patty, I meant to have our books sitting up here.

00:02:36 Alexa Lewis

Oh yeah, you should have them just, you know, it's fine.

00:02:39 Patty Shewmaker

So what's the first, what's the first practice pointer that people should?

00:02:44 Jimmy Lewis

Pre-approval, that you should always send your quadros in for pre-approval.

00:02:48 Patty Shewmaker

Always, Jimmy, always.

00:02:50 Alexa Lewis

Not fidelity.

00:02:51 Jimmy Lewis

Well, it is general practice point that sending your quadros in for pre-approval is, it can absolutely save you a lot of time and headache on the back end.

00:03:05 Alexa Lewis

And money.

00:03:06 Patty Shewmaker

But do you always do it?

00:03:07 Jimmy Lewis

Not always.

00:03:09 Patty Shewmaker

But don't you?

00:03:09 Steve Shewmaker

How do you have a headache on the back end?

00:03:13 Jimmy Lewis

Because somebody's hit you with a baseball bat on the back of your head, what I'm going to do to you in a little while.

00:03:19 Jimmy Lewis

I just don't understand what you're trying to say.

00:03:21 Steve Shewmaker

I don't.

00:03:23 Steve Shewmaker

I'm confused.

00:03:24 Jimmy Lewis

Steve doesn't understand figures of speech.

00:03:26 Jimmy Lewis

It's a metaphor.

00:03:27 Steve Shewmaker

I'm confused.

00:03:29 Steve Shewmaker

I'm confused.

00:03:29 Patty Shewmaker

Oh, it's okay.

00:03:30 Patty Shewmaker

So when don't you send it in for pre-approval?

00:03:32 Jimmy Lewis

Well, if you're doing one, like Alexa said, fidelity.

00:03:37 Jimmy Lewis

If you're just doing one through their website, you're not going.

00:03:39 Patty Shewmaker

To sit at it.

00:03:40 Patty Shewmaker

They're using their other little form, yeah.

00:03:42 Patty Shewmaker

Click, click, they require you to use or they charge you more money.

00:03:46 Jimmy Lewis

Yes.

00:03:46 Alexa Lewis

Except that's only when they're the plan administrator.

00:03:49 Alexa Lewis

They can have it at Fidelity, but not be the plan administrator.

00:03:52 Alexa Lewis

That is true.

00:03:52 Alexa Lewis

It's not a pain in the ****.

00:03:54 Jimmy Lewis

Yeah, and there are certain companies, certain plans where you know if it's basically drafted like this, it's going to go through.

00:04:03 Jimmy Lewis

And you may not need to do that every single time.

00:04:07 Jimmy Lewis

But there are certain ones, maybe it's a smaller plan, something a little more nuanced that you're going to want to have that pre-approval letter before you have parties and the judge signing off on.

00:04:20 Alexa Lewis

And pay for certified copies.

00:04:22 Jimmy Lewis

Yes.

00:04:24 Jimmy Lewis

And the reason being,

00:04:26 Jimmy Lewis

For example, if you didn't do your homework ahead of time and you just go ahead and have everybody sign off on it, you get it filed, you submit that certified copy to the plan administrator and then they reject it, well then you got to go back, you got to.

00:04:40 Patty Shewmaker

And there's nothing more embarrassing than the Quadro being rejected.

00:04:45 Patty Shewmaker

So better to know that up front, that they have issues with it than on the back end.

00:04:49 Jimmy Lewis

Yeah, because nobody wants to have to someone amended.

00:04:53 Alexa Lewis

Particularly if you were hired just to do the Quadro.

00:04:57 Jimmy Lewis

And now I have most certainly had people who hired us who I've explained this to them and they're like, nope, let's just run the risk.

00:05:04 Jimmy Lewis

Like I want to try to get this thing done as quickly as possible.

00:05:07 Patty Shewmaker

Yeah.

00:05:09 Jimmy Lewis

Have 100% had that and I'm okay.

00:05:12 Alexa Lewis

Get that in writing.

00:05:13 Jimmy Lewis

You're good to go.

00:05:17 Jimmy Lewis

Can't recall any times where it has gotten rejected, but yes, thank you.

00:05:22 Steve Shewmaker

We're talking about Quadros, right?

00:05:24 Alexa Lewis

Correct.

00:05:24 Steve Shewmaker

Okay.

00:05:26 Alexa Lewis

You still here with us?

00:05:27 Steve Shewmaker

No, I'm here.

00:05:28 Alexa Lewis

You're still awake.

00:05:29 Steve Shewmaker

I'm fighting it.

00:05:31 Patty Shewmaker

All right, we'll get a cup of coffee after this episode.

00:05:34 Patty Shewmaker

And I don't even drink coffee.

00:05:36 Alexa Lewis

You just want to look at it, you're just going.

00:05:38 Patty Shewmaker

To put it here.

00:05:38 Patty Shewmaker

All right, the next practice point hurt to me.

00:05:41 Jimmy Lewis

Model language.

00:05:42 Jimmy Lewis

Do you guys use model language?

00:05:44 Steve Shewmaker

I use it all the time.

00:05:45 Alexa Lewis

I look at it.

00:05:46 Steve Shewmaker

Hey baby, how you doing?

00:05:48 Steve Shewmaker

Whenever I'm talking to a model, I have certain phrases I use, model language.

00:05:53 Jimmy Lewis

Do you use big words or avoid big words?

00:05:55 Steve Shewmaker

I avoid big words.

00:05:57 Jimmy Lewis

Smart.

00:05:57 Steve Shewmaker

Yeah.

00:05:58 Steve Shewmaker

No, I a couple times I've been talking to like cheerleaders from Harvard.

00:06:02 Steve Shewmaker

then you can use the bigger one.

00:06:03 Patty Shewmaker

That would be cheerleader language, not model language.

00:06:06 Steve Shewmaker

You're right.

00:06:06 Jimmy Lewis

Does your inflection change when you talk to cheerleaders?

00:06:09 Jimmy Lewis

Has to.

00:06:11 Steve Shewmaker

What does inflection mean?

00:06:12 Patty Shewmaker

Little boy.

00:06:15 Alexa Lewis

She thinks he's a model.

00:06:17 Patty Shewmaker

Okay.

00:06:17 Patty Shewmaker

Well, I guess evidently you need to define or describe what model language is.

00:06:22 Jimmy Lewis

Okay, when you get information from a plan administrator as to this particular plan, and here's the quadro guidelines and procedures, and here's model language.

00:06:37 Jimmy Lewis

Normally it's just seven or eight paragraphs that for them, those have to be included.

00:06:42 Jimmy Lewis

Do you guys ever just fill out the model language and that's it?

00:06:46 Patty Shewmaker

No.

00:06:47 Jimmy Lewis

Why not?

00:06:48 Patty Shewmaker

Because it may not have everything that you want, and it may also lead you down a path that you don't want to do.

00:06:55 Patty Shewmaker

Now, do I read the model language?

00:06:57 Patty Shewmaker

Do I use some of it?

00:06:58 Patty Shewmaker

Absolutely.

00:07:00 Patty Shewmaker

But I won't read through it and be like, yeah, I want that, I don't want that, I want to reword that, I want to phrase that a little bit differently.

00:07:07 Patty Shewmaker

So yeah, I mean, but sometimes the model language is good because it's instructive on what they're looking for.

00:07:16 Patty Shewmaker

Because sometimes there's some weird ones out there.

00:07:19 Alexa Lewis

And a lot of times if you don't know what you're reading, as you're going through it, there will be paragraphs where it's like, okay, are you doing a percentage or a flat dollar figure?

00:07:26 Alexa Lewis

And you have to pick one.

00:07:27 Alexa Lewis

They have the model language for each.

00:07:29 Alexa Lewis

And then as you follow down, you have to make sure you pick the consistent paragraph, which is why you really need to understand what you're reading when you're even reading the model.

00:07:37 Jimmy Lewis

Well, and here, this kind of goes back a little bit to the first point of pre-approval.

00:07:44 Jimmy Lewis

And I'm thinking of 1 particular plan that I know in their model language, they even include, hey, if you want to include some sort of calculation with this as an example, you can do that.

00:07:56 Jimmy Lewis

You just need to send it to us first to make sure that it's doable.

00:08:00 Jimmy Lewis

And I've had some where attorneys have called me and they're like, hey,

00:08:03 Jimmy Lewis

here's how we did the settlement agreement.

00:08:05 Jimmy Lewis

And I'm like, I don't think there's any shot in hell that this plan will approve that.

00:08:09 Jimmy Lewis

But if you submit it for pre-approval, and they're like, oh, yeah, no, we can make that work.

00:08:13 Jimmy Lewis

You gave us all of the permit information, so we can run that.

00:08:16 Patty Shewmaker

Especially, I agree with you there, especially when the parties try to do some weird formula and you're like, you know, where they're like, you know, we want to take the account balance and we want to divide it in half, but subtract 13,000 and then, yeah.

00:08:31 Patty Shewmaker

And some plan administrators will accept that and others won't.

00:08:34 Patty Shewmaker

They'll be like, no.

00:08:36 Patty Shewmaker

Either a percentage or a dollar amount, that's it.

00:08:38 Jimmy Lewis

Yeah.

00:08:39 Jimmy Lewis

And if we can't just basically type in on our end value as of this date, no, we're not doing it.

00:08:47 Alexa Lewis

Or percentage as of this date.

00:08:48 Jimmy Lewis

Yep.

00:08:50 Jimmy Lewis

Practice point #3.

00:08:53 Steve Shewmaker

How many practice points are there?

00:08:56 Patty Shewmaker

Twenty-five.

00:08:56 Alexa Lewis

Seventy-two.

00:08:57 Steve Shewmaker

I'm just trying to get my expectations framed probably.

00:09:00 Steve Shewmaker

How many are there total?

00:09:01 Jimmy Lewis

Eight or nine?

00:09:02 Patty Shewmaker

Oh my God, we're only on 15.

00:09:04 Patty Shewmaker

Okay.

00:09:04 Patty Shewmaker

All right.

00:09:06 Jimmy Lewis

There's 9.

00:09:07 Patty Shewmaker

Buckle up.

00:09:07 Patty Shewmaker

Buckle up.

00:09:08 Jimmy Lewis

Buckle up.

00:09:08 Jimmy Lewis

All right.

00:09:08 Jimmy Lewis

How many so far?

00:09:09 Jimmy Lewis

Two.

00:09:10 Jimmy Lewis

We're on three right now.

00:09:11 Jimmy Lewis

So you just lay your head down.

00:09:13 Alexa Lewis

We're not going to be a third of the way through.

00:09:14 Jimmy Lewis

Just lay your head down and be quiet.

00:09:16 Steve Shewmaker

Okay.

00:09:17 Jimmy Lewis

It'll all be over soon.

00:09:19 Jimmy Lewis

Okay.

00:09:21 Jimmy Lewis

Do not agree or try to divide undividable plans.

00:09:25 Jimmy Lewis

We kind of talked about this last time, specifically talking about Georgia TRS, the teacher retirement system.

00:09:32 Jimmy Lewis

Because a lot of times attorneys will write into agreements, hey, this is going to be divided 50-50 and Shoemaker and Lewis will do the quadro for it.

00:09:41 Patty Shewmaker

And then the divorce is over, they send it to us, and then we're like, wait a second, can't do that.

00:09:48 Patty Shewmaker

And then we're contacting the attorney saying,

00:09:52 Patty Shewmaker

We can't do this.

00:09:53 Patty Shewmaker

What do you want us to do?

00:09:55 Jimmy Lewis

Yeah, and so basically the practice point is do your homework about plans that your client has.

00:10:03 Jimmy Lewis

And.

00:10:04 Patty Shewmaker

What's upsetting to me is I've had those cases where it's not divisible, and then you go back to the attorney, the attorney's like, yeah, not my problem.

00:10:12 Alexa Lewis

I'm out of the case already.

00:10:13 Alexa Lewis

But that's another thing is if you're not sure,

00:10:17 Alexa Lewis

You can just call and ask us, like, hey, are you familiar with this plan?

00:10:19 Alexa Lewis

Or, hey, do you know if this plan is divisible?

00:10:22 Alexa Lewis

And then, if we've seen it before, we can probably answer that question.

00:10:25 Jimmy Lewis

Yeah.

00:10:26 Steve Shewmaker

That's what you should do, because the attorney who thinks that they're out of the case is probably headed for their own new case.

00:10:32 Alexa Lewis

They can listen to this past weeks or earlier.

00:10:34 Steve Shewmaker

They're headed to their own case of malpractice.

00:10:38 Jimmy Lewis

Yeah, because oftentimes this, it basically requires you to educate your client, a lot of times opposing counsel, a lot of times a judge.

00:10:50 Jimmy Lewis

Practice point #4, gains and losses.

00:10:55 Jimmy Lewis

Now, this is something a lot of times that attorneys don't even include in the agreements, which if we're just drafting it,

00:11:03 Jimmy Lewis

Then we get questions all the time.

00:11:05 Jimmy Lewis

They're like, well, why wasn't this included?

00:11:06 Jimmy Lewis

Well, you didn't include it in the settlement agreement.

00:11:08 Jimmy Lewis

Well, we meant to.

00:11:09 Jimmy Lewis

Okay, well, it's not in.

00:11:11 Alexa Lewis

The- You might have meant a lot of things.

00:11:12 Patty Shewmaker

Well, and would you agree with me that usually, usually if the quadro is silent on gains and losses, the plan administrator will apply the gains and losses?

00:11:21 Jimmy Lewis

It depends on the plan.

00:11:23 Jimmy Lewis

Some will specifically say, yeah, it's going to be included.

00:11:26 Jimmy Lewis

And some will say, if it doesn't-.

00:11:28 Patty Shewmaker

If you have evaluation date, of course.

00:11:29 Jimmy Lewis

Yeah, if it doesn't include it, then we're not putting it in there.

00:11:34 Patty Shewmaker

And what's also interesting to me is the number of people who don't understand gains and losses.

00:11:41 Steve Shewmaker

Why don't you explain that?

00:11:42 Patty Shewmaker

Well, okay, so I have a 401k, we divorce, and you get 50% as of the date of the divorce.

00:11:51 Steve Shewmaker

Hell yeah, I would.

00:11:53 Patty Shewmaker

And if we divide it and say, okay, and you get the gains and losses, it should be to your portion from the date of the divorce.

00:12:00 Patty Shewmaker

So the plan administrator is not going to get this quadro on the date of the divorce.

00:12:04 Patty Shewmaker

They're going to get it, you know, 30, 60, 90 days after the fact.

00:12:08 Patty Shewmaker

And they're going to calculate your portion.

00:12:10 Patty Shewmaker

on the day of the divorce, and let's say it's $100,000.

00:12:12 Patty Shewmaker

And let's say you're supposed to get gains and losses attributable to that.

00:12:17 Patty Shewmaker

Well, let's say that the market is up and the gains on your portion, let's say they're $5,000 and you get that.

00:12:24 Patty Shewmaker

Good for you.

00:12:27 Patty Shewmaker

And vice versa, let's say the market's down and the market's lost 5,000, so you get the 95,000.

00:12:32 Patty Shewmaker

If you don't get the gains and losses, you know, if it specifically says no gains and losses,

00:12:38 Patty Shewmaker

then if the market goes up, that $5,000, I get.

00:12:43 Patty Shewmaker

But that was the market experience on your portion.

00:12:47 Patty Shewmaker

So it's just interesting that the people who don't understand that.

00:12:50 Patty Shewmaker

Now understand that once your portion's segregated from my portion, then you absolutely do get the gains and losses because then it's in its own account.

00:12:58 Steve Shewmaker

So you're talking about between the time of the.

00:13:01 Patty Shewmaker

Valuation and the date of segregation.

00:13:03 Steve Shewmaker

And what's the date of valuation?

00:13:04 Patty Shewmaker

Whatever you tell the planet is, usually it's a date of.

00:13:08 Steve Shewmaker

And once it's data segregation.

00:13:10 Patty Shewmaker

Once that's when the plan administrator actually separates it into two.

00:13:14 Steve Shewmaker

So you can't control the data segregation.

00:13:16 Steve Shewmaker

You can only control the data evaluation.

00:13:18 Steve Shewmaker

Correct.

00:13:19 Steve Shewmaker

Right.

00:13:19 Steve Shewmaker

So that's what people don't understand.

00:13:22 Patty Shewmaker

Right, And the gains and losses and what that means.

00:13:24 Patty Shewmaker

You know, everybody's like, Oh no, she shouldn't get gains and losses.

00:13:27 Steve Shewmaker

Can I get gains but not losses?

00:13:31 Alexa Lewis

No.

00:13:31 Steve Shewmaker

Why not?

00:13:31 Steve Shewmaker

Tell me when to take the good with the bad.

00:13:34 Patty Shewmaker

No, I don't, they don't, they don't.

00:13:36 Patty Shewmaker

It's usually it's either.

00:13:37 Alexa Lewis

It's a rule.

00:13:38 Patty Shewmaker

Yeah, it's either one or the other.

00:13:40 Steve Shewmaker

But I want the gains.

00:13:41 Alexa Lewis

But what happens sometimes is when people do a flat dollar figure.

00:13:44 Patty Shewmaker

Don't we all, man?

00:13:45 Patty Shewmaker

Don't we all?

00:13:45 Steve Shewmaker

Right.

00:13:46 Alexa Lewis

Well, and that's what can get frustrating for parties when they don't understand it, particularly if they were thinking they were supposed to get a flat dollar figure and now the market's down at the time that it's the segregation date and they're like, why am I only getting X amount?

00:13:59 Alexa Lewis

Why not the order specifically says I'm supposed to get this amount?

00:14:02 Alexa Lewis

Like, well, but it was also that amount as of this day.

00:14:05 Alexa Lewis

and it said gains and losses, which is why sometimes if you're going to do flat dollar figure, maybe don't include gains and losses.

00:14:13 Speaker 4

Right.

00:14:15 Alexa Lewis

Keep people's expectations where they should be.

00:14:17 Jimmy Lewis

We also get a lot of calls from people that they got divorced 10 years ago and they're just now getting around to getting the retirement tuition.

00:14:25 Alexa Lewis

Yeah, I thought about it, but you know, I had other things to do.

00:14:29 Jimmy Lewis

Well, I mean, I spoke with.

00:14:30 Alexa Lewis

Well, he wasn't retired yet.

00:14:31 Alexa Lewis

Oh, I did one that was 20 years.

00:14:34 Alexa Lewis

Yep, it was 20.

00:14:35 Alexa Lewis

years and it wasn't even with the same place anymore and it was the way the divorce decree was written was a certain percentage of certain stock and it was a whole *** mess.

00:14:46 Alexa Lewis

We got to figure it out, but it was a whole mess.

00:14:48 Jimmy Lewis

And I've had people very long time ago like that and their valuation date at that time, and they say, Well, I should get all the gains on that, shouldn't I?

00:14:58 Jimmy Lewis

Like, Well, it's written in your agreement that you don't.

00:15:00 Jimmy Lewis

Well, that's not fair.

00:15:02 Alexa Lewis

Sorry.

00:15:02 Patty Shewmaker

How is that not fair?

00:15:04 Jimmy Lewis

I mean, you should have done this 20 years ago like that.

00:15:06 Jimmy Lewis

I didn't do anything 10 years ago when you got divorced.

00:15:08 Patty Shewmaker

It's really not yours.

00:15:11 Patty Shewmaker

So why should you get the market gains on something that's not really yours?

00:15:15 Patty Shewmaker

Yeah.

00:15:17 Patty Shewmaker

So if you don't realize, I think gains and losses should be attributable from the data valuation forward.

00:15:25 Jimmy Lewis

Practice point #5, avoid including a determination or valuation date that is not allowable under the plan.

00:15:33 Jimmy Lewis

So

00:15:35 Jimmy Lewis

You can sometimes have dates that they're technically will not.

00:15:39 Patty Shewmaker

Yeah, and usually you run into that problem if you're like backdating.

00:15:43 Patty Shewmaker

Like if you're saying value it as of this date three years ago, because maybe the party separated, that's when they separated.

00:15:50 Patty Shewmaker

And where you run into that, a lot of times the plan won't allow that because the plan has moved between financial institutions as the plan administrator can't

00:16:02 Patty Shewmaker

calculate what that is.

00:16:04 Patty Shewmaker

And so that's where you run into trouble.

00:16:06 Alexa Lewis

And that goes to say that if you do have a retirement division and you're divorced, also don't wait to get your QDRO 10 years later, because that is a very real problem, even if it's, yeah, it's in your decree.

00:16:19 Alexa Lewis

The judge did it.

00:16:19 Alexa Lewis

Well, yeah, but the judge can't come back and fix it now when you guys just sat on it for 10 years and they moved institutions a few times.

00:16:30 Jimmy Lewis

One thing that I have found has kind of cured some of those where if they're like, oh, we don't have records as of that specific date because it may have fallen on whatever day for some reason that they just didn't have anything for close of business that day, just include closest value or the closest valuation date there too before or after.

00:16:54 Jimmy Lewis

Something specifying that and

00:16:57 Jimmy Lewis

You kind of avoid that issue.

00:16:58 Alexa Lewis

Yeah, it gives them.

00:16:59 Jimmy Lewis

A little bit of a catch-all.

00:17:01 Steve Shewmaker

You all remember the gong show from the 70s.

00:17:03 Speaker 4

Yeah.

00:17:04 Alexa Lewis

No.

00:17:04 Steve Shewmaker

You ever seen it like on YouTube?

00:17:06 Steve Shewmaker

We need to get a big *** gong in here.

00:17:08 Steve Shewmaker

No.

00:17:08 Steve Shewmaker

So I can pound that side.

00:17:12 Steve Shewmaker

Yeah.

00:17:13 Alexa Lewis

Just hold it right next to your ear.

00:17:15 Alexa Lewis

Just don't wake your *** up.

00:17:16 Patty Shewmaker

All right, what's next?

00:17:17 Patty Shewmaker

What's next on the list?

00:17:18 Alexa Lewis

Hey, we're on #6, okay?

00:17:19 Alexa Lewis

We're cooking here.

00:17:20 Steve Shewmaker

We're not on #6 yet.

00:17:21 Alexa Lewis

We're starting #6 right now.

00:17:23 Steve Shewmaker

You'll stop interrupting, Jimmy.

00:17:25 Jimmy Lewis

Patty, do you ever get people who, when you're discussing Quadro, when they ask you, hey, what should I do with the money?

00:17:34 Alexa Lewis

Yes, I've had that question.

00:17:36 Patty Shewmaker

Yes.

00:17:37 Jimmy Lewis

I get it a shocking amount of times and I just say,

00:17:40 Jimmy Lewis

I'm not a financial planner.

00:17:41 Patty Shewmaker

Right, Or they start asking you, like, where should they put it?

00:17:48 Patty Shewmaker

the tax implications, all this stuff.

00:17:51 Patty Shewmaker

And I'm like, look, this is what's going to happen.

00:17:56 Patty Shewmaker

Or they start providing me with account information.

00:17:58 Patty Shewmaker

That's like, I don't want your account information.

00:17:59 Patty Shewmaker

They're like, this is where this is.

00:18:01 Patty Shewmaker

I'm trashing the quadro.

00:18:02 Patty Shewmaker

Here's the account where I want the money.

00:18:03 Patty Shewmaker

I go.

00:18:04 Alexa Lewis

No, Don't tell me.

00:18:05 Patty Shewmaker

Don't tell me because I'm not the one moving the money.

00:18:09 Patty Shewmaker

And I don't need your account information.

00:18:10 Steve Shewmaker

This is so.

00:18:11 Alexa Lewis

We need some smelling salts for you.

00:18:12 Steve Shewmaker

This is so boring.

00:18:14 Alexa Lewis

Oh my God.

00:18:14 Patty Shewmaker

I see, I guess you're not nerding out with us.

00:18:17 Steve Shewmaker

This is the most boring podcast.

00:18:18 Patty Shewmaker

I'm not bored.

00:18:19 Patty Shewmaker

No, you said the child support adjustment one.

00:18:22 Steve Shewmaker

No, I had a guy two.

00:18:24 Jimmy Lewis

Years ago who he paid us and then he was like, so when are you going to transfer my money?

00:18:32 Patty Shewmaker

So we got laughter for the people.

00:18:34 Jimmy Lewis

And I was like, well, if you think

00:18:38 Jimmy Lewis

that this gigantic financial institution is going to give me access to move your money around, buddy.

00:18:46 Patty Shewmaker

Yeah, and bless their hearts, because then they also will like, you submit the Quadro and then they're like calling you.

00:18:54 Alexa Lewis

And you're like...

00:18:58 Patty Shewmaker

They won't give me that information, but here's who you need to call because I just submit the paperwork.

00:19:06 Patty Shewmaker

Sorry.

00:19:07 Patty Shewmaker

I mean, if I could, I would, but they usually won't talk to us because we don't have an account with them.

00:19:13 Jimmy Lewis

Yeah.

00:19:14 Jimmy Lewis

And I had a guy one time who he was the participant and

00:19:19 Jimmy Lewis

His ex-wife was getting a lot of money and he was like, Well, how will I know when it's done?

00:19:25 Jimmy Lewis

You'll know, man.

00:19:26 Alexa Lewis

It'll be a big gaping hole.

00:19:28 Patty Shewmaker

In your account statement.

00:19:29 Jimmy Lewis

And I was like, well, you're, I said, you'll get the notification that it's being processed and that it's been approved and qualified.

00:19:39 Jimmy Lewis

I said, but as far as when you'll actually know it's done, I said, one day you'll log in and it will be a much lower number.

00:19:46 Jimmy Lewis

And he just kind of started laughing.

00:19:48 Jimmy Lewis

And he was like, that's just such a horrible way to look at it.

00:19:52 Jimmy Lewis

And I kind of laughed and I was like, yeah, well, sorry.

00:19:54 Jimmy Lewis

It's also factual.

00:19:55 Patty Shewmaker

It's kind of like, how do you know a check clears your account?

00:19:58 Patty Shewmaker

Okay, you're looking at your account and you're like, oh, look, there it is.

00:20:01 Jimmy Lewis

And I said the same thing to a guy like 2 weeks later.

00:20:05 Jimmy Lewis

And it was then just

00:20:07 Jimmy Lewis

dead silent for like 5 seconds.

00:20:09 Jimmy Lewis

He was like, you think this is funny?

00:20:11 Jimmy Lewis

And I was like, no.

00:20:14 Jimmy Lewis

dude, that's just the reality of the situation.

00:20:18 Jimmy Lewis

I don't think it's funny.

00:20:20 Steve Shewmaker

That's usually when I break in and say to the guy, but she did have to see you naked.

00:20:24 Steve Shewmaker

And then most of them are like, yeah.

00:20:27 Steve Shewmaker

You're right.

00:20:28 Steve Shewmaker

Yeah, you make a good point, Steve.

00:20:31 Jimmy Lewis

Yeah.

00:20:31 Jimmy Lewis

that guy was not a nice human.

00:20:34 Alexa Lewis

Not a happy camper.

00:20:35 Patty Shewmaker

Are we on 7?

00:20:35 Jimmy Lewis

We are on 7.

00:20:36 Alexa Lewis

We've made it.

00:20:37 Jimmy Lewis

Practice point #7 is do your homework during the discovery process and the divorce.

00:20:44 Jimmy Lewis

Contact the plan, get plan guidelines, procedures, model language, learn what the plan can do, learn what the plan can't do, learn what your allowable options are and educate yourself.

00:20:54 Patty Shewmaker

Especially when we're talking about pensions.

00:20:56 Alexa Lewis

Yeah.

00:20:57 Alexa Lewis

And also, if you're going to contact them, let them know there is a divorce pending.

00:21:01 Alexa Lewis

So that way the person who is the participant, assuming you don't represent them, doesn't decide to start taking money from, say, 401k or whatever during the pendency of the action.

00:21:10 Patty Shewmaker

Put a freeze on it.

00:21:14 Jimmy Lewis

And learn what the plan can do and can't do.

00:21:17 Jimmy Lewis

To your point, pensions, the number of times that we've gotten calls where somebody says, I'm entitled to $436,000 out of his pension.

00:21:28 Jimmy Lewis

And I'm like, neat, over what period of time for what end payments?

00:21:34 Jimmy Lewis

And they're like, no, I get that as a lump sum.

00:21:36 Patty Shewmaker

Yeah, I had a former client call me this past week

00:21:42 Patty Shewmaker

And she's getting, we did a Quadro, she's getting her pension payments from her ex-husband's pension.

00:21:47 Patty Shewmaker

And she's like, I'm tired of getting this monthly payment.

00:21:50 Patty Shewmaker

Is there any way I can get it lump sum?

00:21:53 Alexa Lewis

It's like, no.

00:21:56 Jimmy Lewis

If only it were so simple.

00:21:58 Jimmy Lewis

If only.

00:21:59 Alexa Lewis

I'm sorry about your luck.

00:22:01 Jimmy Lewis

Okay, to your point, what you said, depending on who you're representing,

00:22:09 Jimmy Lewis

Should you request certain things and should you submit certain things to the plan administrator?

00:22:15 Alexa Lewis

I mean, if you have concerns, I know we recently had a case where the opposing party throughout the divorce was pulling money from the 401k and was about to do it again between the trial and the issuance of the final judgment decree.

00:22:27 Alexa Lewis

And we sent a letter directly to the financial institution like, oh, hey, by the way, here's your petition for divorce.

00:22:33 Alexa Lewis

Because we finally got his information.

00:22:36 Alexa Lewis

So to figure out where the 401k was to learn all of this, because it took him, motion to compel, order to compel, all the things to even provide documents.

00:22:44 Alexa Lewis

So of course, we learned way late in the game that he'd been doing this.

00:22:47 Alexa Lewis

So provided a letter directly to the financial institution.

00:22:50 Alexa Lewis

And now he's complaining to the judge that they issued a quadro.

00:22:54 Alexa Lewis

No, sir.

00:22:55 Alexa Lewis

We just informed your financial institution.

00:22:57 Alexa Lewis

Yeah, that's it.

00:22:59 Alexa Lewis

So you can't continue pulling money before the judge even says whether or not she gets something from it.

00:23:04 Patty Shewmaker

Yeah, I've done that.

00:23:06 Jimmy Lewis

Now, how far back do you guys request on retirement statements?

00:23:11 Patty Shewmaker

Depends on the case.

00:23:12 Patty Shewmaker

Yeah, depends.

00:23:16 Alexa Lewis

Okay.

00:23:17 Speaker 4

Fine.

00:23:18 Jimmy Lewis

Cool story.

00:23:19 Jimmy Lewis

Oh, y'all really didn't explore that one at all?

00:23:22 Alexa Lewis

I mean, do you want to know what it depends on or?

00:23:25 Patty Shewmaker

I mean, I'm not going to request five years of statements on a one-year marriage.

00:23:31 Jimmy Lewis

And okay, practice.8, avoid

00:23:35 Jimmy Lewis

using troublemaking provisions.

00:23:37 Jimmy Lewis

So basically, make sure if you're going to include something in the settlement agreement, make sure that it is actually doable.

00:23:43 Patty Shewmaker

Troublemaking provisions.

00:23:45 Patty Shewmaker

Don't say things like, yeah.

00:23:47 Alexa Lewis

Lump sum out of a pension.

00:23:48 Patty Shewmaker

Well, yeah.

00:23:50 Patty Shewmaker

Don't use fighting words in your quadros.

00:23:59 Alexa Lewis

See, I'm just trying to make this entertaining, man.

00:24:03 Patty Shewmaker

Wait.

00:24:04 Patty Shewmaker

I wouldn't trouble making provisions asking for a lump sum matter pension.

00:24:09 Jimmy Lewis

Things like that.

00:24:10 Alexa Lewis

Monthly payments under 401K.

00:24:11 Steve Shewmaker

You're standing in between us and #9.

00:24:14 Jimmy Lewis

Oh, sorry.

00:24:15 Jimmy Lewis

Practice point #9 is always allow for parties and or attorneys to review and approve the card.

00:24:22 Patty Shewmaker

Oh, yes, And I make, especially, I almost always make the parties sign.

00:24:30 Jimmy Lewis

Me too.

00:24:31 Alexa Lewis

Me too.

00:24:31 Patty Shewmaker

Even if it's post.

00:24:33 Speaker 4

Yeah.

00:24:33 Alexa Lewis

Yeah, me too.

00:24:35 Jimmy Lewis

Very rarely are we not doing that.

00:24:37 Jimmy Lewis

And really kind of the only times that we're not is when, and it's always the participant, just refuses to cooperate at all.

00:24:46 Patty Shewmaker

Yeah, I've got that going.

00:24:47 Jimmy Lewis

And submit it to the court and say, hey, judge, look, here's when we emailed it to him, here's when we sent it for e-signature, nothing's been responded to.

00:24:56 Patty Shewmaker

Yeah.

00:24:57 Jimmy Lewis

They told us to go pound sand.

00:24:58 Alexa Lewis

And by the way, they're copied on this e-mail, so here you go.

00:25:00 Jimmy Lewis

And they're copied here, and here's where

00:25:03 Jimmy Lewis

It all is perfectly in line with the settlement agreement.

00:25:06 Jimmy Lewis

So thanks.

00:25:07 Alexa Lewis

Yeah, please sign, Kay, thanks.

00:25:08 Jimmy Lewis

And most judges are like, yep, cool, no problem.

00:25:11 Patty Shewmaker

Yeah.

00:25:13 Jimmy Lewis

But I think that is, I think that's a good CYA for attorneys and judges, frankly.

00:25:19 Patty Shewmaker

Yeah, absolutely.

00:25:20 Alexa Lewis

Especially if you've got that deep on the paper trail.

00:25:22 Patty Shewmaker

Well, and especially when we're entering quadros and this happens A lot.

00:25:27 Patty Shewmaker

I mean, when I do a quadro, I would prefer it to be like

00:25:31 Patty Shewmaker

with the divorce or right after the divorce is entered.

00:25:34 Patty Shewmaker

I don't like it when I'm getting contacted.

00:25:37 Alexa Lewis

Three years later, yeah.

00:25:39 Patty Shewmaker

A year later, two years later, three years later.

00:25:41 Alexa Lewis

Yeah.

00:25:41 Jimmy Lewis

I talked to a lady earlier today, January 2019.

00:25:45 Patty Shewmaker

Yeah.

00:25:47 Alexa Lewis

It's just one of those things that like, number one, it makes our job much more difficult because now we're going to have to get way more involved than usually what the intention is.

00:25:56 Alexa Lewis

It's just drafted

00:25:58 Alexa Lewis

have it signed, submit it, submit it to the plan, you're done.

00:26:03 Alexa Lewis

And now we're talking a good bit more money because we're probably going to have to do a lot more investigation or dealing with parties or dealing with former attorneys because you're 3, 10, 15 years post-divorce, nobody remembers it and nobody wants to get back involved.

00:26:19 Alexa Lewis

And then now you're hunting down parties and things like that.

00:26:21 Patty Shewmaker

Oh, and hopefully nothing's changed.

00:26:22 Alexa Lewis

Right.

00:26:24 Alexa Lewis

Which is usually not the case.

00:26:27 Alexa Lewis

an extended period of time.

00:26:28 Alexa Lewis

So yeah.

00:26:30 Jimmy Lewis

In closing, I would like to have more podcasts about Quadros because he barely talks.

00:26:37 Alexa Lewis

Not a single word.

00:26:39 Steve Shewmaker

I'm so tired.

00:26:40 Alexa Lewis

You want to close this out then?

00:26:41 Alexa Lewis

You can close this out.

00:26:42 Steve Shewmaker

Worst podcast ever.

00:26:44 Alexa Lewis

Oh, come on now.

00:26:45 Alexa Lewis

That's terrible.

00:26:45 Jimmy Lewis

You bite your tongue.

00:26:47 Patty Shewmaker

You told me it was the parenting time adjustment.

00:26:49 Alexa Lewis

It was, Ross.

00:26:50 Steve Shewmaker

It was until today.

00:26:52 Alexa Lewis

Be nice.

00:26:53 Alexa Lewis

People are interested in this stuff.

00:26:55 Patty Shewmaker

Some people like to nerd out.

00:26:56 Steve Shewmaker

We got to dress this up.

00:26:57 Steve Shewmaker

Maybe some background music?

00:27:00 Patty Shewmaker

Where's your guitar?

00:27:01 Patty Shewmaker

Go grab your guitar.

00:27:02 Speaker 4

You can play a little bit real fast.

00:27:03 Speaker 4

Just something fun into this.

00:27:05 Speaker 4

Dancing elephants or something.

00:27:07 Alexa Lewis

Perfect.

00:27:07 Alexa Lewis

Sounds great.

00:27:08 Patty Shewmaker

Quadro pointers.

00:27:11 Patty Shewmaker

Hey, for those that like to nerd out with me and Jimmy, peace out, Girl Scouts.

00:27:14 Patty Shewmaker

I nerded out too.

00:27:29 Narrator

That's it for this episode of Lawyers Without Billboards.

00:27:33 Narrator

If you found this episode helpful, make sure to follow and subscribe on Spotify, Apple Podcasts, Google Podcasts, or wherever you get your podcasts.

00:27:42 Narrator

For more resources or to get in touch with us, visit shoemakerandlewis.com.

00:27:47 Narrator

Thanks for listening and we'll see you next time.