Understanding What Gets Divided: 401(k)s in Divorce
When you’re going through a divorce, dividing your financial assets is never easy. One major component of that process often includes retirement plans like 401(k)s. If you or your spouse are a participant in the Simon Property Group and Adopting Entities Matching Savings Plan, the next logical question is: how do we divide that fairly and legally? The answer—a Qualified Domestic Relations Order (QDRO).
In this article, we’ll break down everything you need to know about dividing the Simon Property Group and Adopting Entities Matching Savings Plan during divorce using a QDRO. We’ll talk specifics—employee vs. employer contributions, what happens with loans, Roth vs. traditional accounts, and more. If you’re looking for real-world, actionable information about QDROs and this specific 401(k) plan, you’re in the right place.
Plan-Specific Details for the Simon Property Group and Adopting Entities Matching Savings Plan
Here are the known details for this retirement plan:
- Plan Name: Simon Property Group and Adopting Entities Matching Savings Plan
- Sponsor: Unknown sponsor
- Address: 225 WEST WASHINGTON STREET
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Industry: General Business
- Organization Type: Business Entity
- EIN: Unknown
- Plan Number: Unknown
- Assets: Unknown
While the plan sponsor’s name and other identifying data such as EIN and Plan Number are currently unknown, these will be required when preparing the QDRO. At PeacockQDROs, we help our clients obtain and confirm this information directly with the plan administrator.
What is a QDRO and Why You Need One
A QDRO (Qualified Domestic Relations Order) is a court order that allows a retirement plan like the Simon Property Group and Adopting Entities Matching Savings Plan to legally divide assets between divorcing spouses. Without a properly prepared QDRO, the plan cannot and will not release any portion of the participant’s retirement savings to anyone else, even with a divorce judgment in hand.
Dividing the Simon Property Group and Adopting Entities Matching Savings Plan
This plan is a 401(k), which means it involves both employee and possibly employer contributions. Here’s what you need to know about dividing it:
Employee and Employer Contributions
The QDRO should clearly define how both employee contributions and employer match contributions will be divided. Typically, only amounts accrued during the marriage are considered marital property. However, employer matching contributions may be subject to a vesting schedule.
- Employee Contributions: 100% owned by the participant, and usually divisible to the extent they accumulated during the period of marriage.
- Employer Contributions: Subject to a vesting schedule. Only vested amounts can be assigned to the former spouse (Alternate Payee).
If your spouse accrued significant employer contributions that are only partially vested, that too should be flagged in the QDRO. We can help ensure any forfeited, non-vested amounts are accounted for properly.
Vesting Schedule and Forfeitures
Unvested employer contributions are not considered part of the divisible balance unless they become vested by the time of division. For the Simon Property Group and Adopting Entities Matching Savings Plan, we’ll work with you to determine the exact vesting schedule and apply it accurately in the QDRO.
Plan Loans
If the participant took a loan from the plan, this reduces the account balance available for division. Whether or not loans are factored into the split depends on the intent of the parties and how the order is drafted. You need to decide:
- Should the alternate payee share in the balance before or after the loan deduction?
- Will the alternate payee also be liable for a portion of loan repayment?
Most people select a division based on the account value net of loans, but it’s not one-size-fits-all. PeacockQDROs helps determine what language best fits your case and ensures it passes plan review.
Roth vs. Traditional Accounts
This plan may contain both pre-tax (traditional 401(k)) and Roth contributions. The treatment of these accounts needs to be handled with care in your QDRO. Usually, they are divided proportionally unless the parties agree otherwise.
At PeacockQDROs, we make sure the order specifically states how each account type should be split. Roth amounts can’t simply be shifted to a traditional account (or vice versa) without tax consequences. We prevent these costly mistakes.
Document Requirements Specific to this Plan
When submitting a QDRO for the Simon Property Group and Adopting Entities Matching Savings Plan, you will need to identify the plan using its correct name. Since the EIN and Plan Number are not currently available, you or your attorney will need to obtain this from Human Resources or the plan administrator.
This is a common delay point for QDROs. At PeacockQDROs, we take on that job for you—contacting the recordkeeper or plan sponsor to request missing details and pre-approval instructions.
Why a QDRO Must Be Precise for a Business 401(k) Plan
Since the Simon Property Group and Adopting Entities Matching Savings Plan is a General Business plan held by a Business Entity, precision is everything. Most plan administrators will reject vague orders. These plans have strict formatting and require the order to clearly state:
- Exact percentage or dollar amount of benefits to the alternate payee
- Whether interest and earnings are included post-division date
- How loans, Roth balances, and forfeited contributions are dealt with
Many DIY orders or free county templates miss these critical elements, resulting in rejection or post-divorce disputes. At PeacockQDROs, we’ve drafted thousands of QDROs and understand how each retirement plan operates, including this one.
Avoid These Common QDRO Mistakes
It’s easy to make errors when preparing a QDRO. Here are some of the biggest ones we see:
- Failing to consider outstanding loan balances
- Dividing unvested employer contributions improperly
- Overlooking Roth vs. traditional account differences
- Missing plan-specific requirements or naming errors
Check out our article on common QDRO mistakes to avoid the pitfalls we see far too often.
How Long Will This Take?
That varies based on how quickly missing plan information is obtained, how busy your local court is, and whether the plan administrator offers pre-approval. We break it down in our guide on 5 factors that determine QDRO timelines.
We Handle the Entire QDRO Process—Start to Finish
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.
Visit our main QDRO hub here: www.peacockesq.com/qdros/
Have questions? Reach out to us directly: www.peacockesq.com/contact/
Get Help Dividing the Simon Property Group and Adopting Entities Matching Savings Plan
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 Simon Property Group and Adopting Entities Matching Savings 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.