Introduction
Dividing retirement assets during divorce is rarely simple—especially when those assets include an Employee Stock Ownership Plan (ESOP) like the The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan. ESOPs involve stock ownership, valuation constraints, distribution elections, and put option rights that can trip up even experienced attorneys if they’re not careful.
At PeacockQDROs, we’ve seen these issues many times and have helped thousands of clients through the full Qualified Domestic Relations Order (QDRO) process. In this article, we’ll walk you through the specific steps and challenges of dividing the The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan so you can make informed decisions during your divorce.
Plan-Specific Details for the The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan
- Plan Name: The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan
- Sponsor: Leavitt group enterprises, Inc.
- Plan Type: ESOP (Employee Stock Ownership Plan)
- Industry: General Business
- Organization Type: Corporation
- Plan Status: Active
- Address: 136 W. UNIVERSITY BLVD.
- Plan Year: Unknown
- Participants: Unknown
- Effective Date: Unknown
- EIN: Unknown (Must be obtained for QDRO processing)
- Plan Number: Unknown (Must be obtained for QDRO processing)
If you’re going to divide this plan, you or your attorney will need to request the Summary Plan Description (SPD) and the plan’s QDRO procedures from the plan administrator. These will clarify critical processes around valuation, timing, diversification, and distributions.
What Makes an ESOP Like This Plan Tricky in Divorce?
When you’re dealing with an ESOP, you’re working with company stock held in a retirement plan. That’s very different from a traditional 401(k). For a divorcing spouse (called the “alternate payee” in QDRO terms), receiving company stock brings new questions: When can they get the stock? Can they sell it? Will they owe taxes? Timing and structure make all the difference here.
Key Challenges Specific to ESOPs
- Valuation Dates: ESOPs typically value stock annually or on a fixed schedule—not daily like public securities. This means the stock you divide during divorce today may not be valued again until year-end. That makes selecting the right valuation date in your QDRO critical.
- Diversification Rights: ESOP participants over 55 with 10+ years of participation often have the ability to diversify a portion of their holdings out of company stock. A QDRO may need to protect or assign those rights to the alternate payee.
- Put Option Rights: Since ESOP shares may not be publicly traded, former employees or alternate payees may have the right to “put” the stock back to the company for cash value. This can present huge timing and liquidity challenges that must be addressed in your order.
- Distribution Timing: Most ESOPs limit when participants—and alternate payees—can receive distributions. Electing a distribution too early or missing an election window could result in delays or forced deferral.
How QDROs Work for the The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan
To divide the The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan in divorce, you’ll need to submit a QDRO that meets not only federal ERISA standards but also the plan’s own internal rules. Here’s what that process looks like.
Step 1: Get All Plan Documents
You can’t prepare a valid QDRO without knowing the plan’s unique features. For this plan, you’ll need the SPD, QDRO procedures, the formal plan document, and written confirmation of the plan’s EIN and plan number. These are requirements for your QDRO to be accepted.
Step 2: Drafting the QDRO
The language needs to address:
- How much of the account is going to the alternate payee—by percentage or fixed dollar
- Whether the alternate payee gets stock or cash equivalent
- How to handle put option rights and stock distributions
- What valuation date should apply—this is tricky if the annual stock valuation hasn’t been completed
- Whether diversification rights pass to the alternate payee
- Tax obligations—who’s responsible depending on how distributions occur
Incorrect or unclear language can lead to delays or even rejection. That’s why we don’t just draft the order—we also get preapproval from the plan whenever possible before you take it to court.
Step 3: Court Approval
The QDRO must be signed by the judge before it’s submitted to the plan. We handle the court filing as part of our full-service approach, saving you the hassle of navigating courtroom procedures on your own.
Step 4: Submission and Follow-Up
After the order is signed, we send it to the plan administrator and track its status until it’s approved and implemented. For a plan like The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan, follow-up is key due to the added complexity of stock divisions and timing of valuations.
Why PeacockQDROs Is Different
At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. That means we don’t just draft the order and leave you to figure out the rest. We handle the drafting, preapproval (if applicable), court filing, submission, and follow-up with the plan administrator. That’s what sets us apart from firms that only prepare the document and hand it off to you.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. We’ve seen the mistakes that happen when QDROs for ESOPs like The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan aren’t done correctly—misallocated stock, missed put option deadlines, and delayed distributions costing families thousands.
Learn more about our full QDRO process here: https://www.peacockesq.com/qdros/
Special Considerations for ESOPs in Divorce
Put Option Problems
Alternate payees are often stuck with illiquid company stock and no clear way to convert it to cash. Even with a put option, if the company delays honoring it or if the stock is undervalued, the payee is left at a disadvantage. Your QDRO must give the alternate payee the right to exercise the put option and specify how and when cash payments should happen.
Annual Valuation Timing
The value of Leavitt group enterprises, Inc. stock is likely determined annually. If your QDRO uses a valuation date right before the value drops—or before the new value is known—you could divide based on outdated numbers. This is a strategic decision that we discuss with each client before finalizing the order.
Diversification Rights
If the participant spouse qualifies and hasn’t used them, those diversification rights may be valuable. Your QDRO should clarify who gets those rights, especially if they could unlock cash rather than company stock for the alternate payee.
And if you’re wondering how long the full QDRO process will take, check out our honest breakdown: 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Common Mistakes to Avoid
- Assuming public stock rules apply to private ESOP shares
- Leaving out valuation date or deferral deadlines
- Ignoring put option window terms
- No clear election of stock vs cash
- Failing to assign diversification rights
We cover more common pitfalls like these here: QDRO Mistakes to Avoid.
Conclusion
Dividing the The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan takes more than a generic QDRO template—it requires a detailed understanding of ESOP-specific rules, valuation timing, and the rights that apply when stock is involved. Whether you’re the participant or the alternate payee, getting this done right matters to your financial future.
If your divorce was in California, New York, New Jersey, Connecticut, Kansas, Missouri, Iowa, or North Dakota, and you have questions about qualified domestic relations orders or dividing retirement assets like the The Leavitt Group Profit Sharing and Retirement Savings Employee Stock Ownership Plan, contact PeacockQDROs. We specialize in QDROs and have successfully processed thousands of orders from start to finish.
Get the answers you need—explore our QDRO resources or reach out for personalized help if you’re in one of our service states.