Equitable Distribution of Securities

Part Two of a Two-Part Article

The first part of this article discussed the initial steps, documents and forms for transferring securities in the course of the equitable distribution of assets involved in matrimonial litigation. This conclusion addresses deferred compensation plans and provides forms for the completion of the transfer.

Deferred Compensation Plans

Transfers from pensions, annuity funds or other deferred compensation plans may be complex. Once the fair market (cash) value of the particular asset at issue is determined, the fund or plan may prohibit the desired transfer unless it has first received a QDRO (Qualified Domestic Relations Order — or simply a Domestic Relations Order). It does little good to argue with the firm or with opposing counsel about obtaining such orders. It is also always best to avoid confusion as to who is responsible for preparing, paying for, submitting to the Plan Administrator for pre-approval, filing and obtaining the signed Orders from the court, and sending certified copies to the parties and the Plan, ie, the rather onerous mechanics of such paperwork (despite whether the financial firm itself delays in notifying counsel that such an order is now needed for its internal purposes). In fact, any delay in preparing, submitting, filing, and submitting to the firm their required order may cost your client money, particularly in a declining market. In order to avoid incurring your client's wrath — whether or not it is deserved — always send the firm and opposing counsel documents confirming what is to be done; utilize overnight mail to have proof of what has been done, and prepare “ticklers” in your calendar to follow up on the transfer.

It is always an unpleasant surprise to learn subsequently that your opponent has lost the paperwork and wants you to send it to him/her again and again, thus incurring your client's continued anger at being billed for your time and disbursements to accomplish this mission.

If the fund or plan views the transfer as an early withdrawal/liquidation and transfer of plan assets, or if the distribution is deemed to be a permitted execution of excepted assets in order to enforce a judgment or order under certain state laws, the fund or plan may agree to make the transfer without a QDRO. However, the fund or plan will probably still demand a certified copy of a court order directing the particular transfer. Just as in the case of securities accounts, counsel should obtain the required information and forms from the fund or plan prior to submission of the order for the court's signature. The writings and traceable mail techniques described above should also be followed, again, to avoid any question in anyone's mind that you have performed the required tasks.

There are some transferors who may have obtained the permission from the relevant institution to transfer securities out of a deferred compensation plan directly into the transferor's IRA, particularly where the transferor is no longer employed there. The transferor states that he/she will then transfer the requisite proportion of the securities into the transferee's IRA after the full (or agreed upon percentage) is transferred by the Plan to his/her IRA. Unless such an arrangement is set forth in the original separation agreement, there is nothing to prevent the transferor from keeping all the transferred funds in his or her IRA. Counsel should prepare a proper modification agreement, obtain written approval by the Plan of the modification agreement and the requisite forms from the financial institution where the transferor's IRA is located, which the transferor should execute in the presence of the transferee spouse for maximum protection to the transferee. However, a QDRO duly signed by the court and sent to the Plan Administrator and the financial institution where the recipient account is located is a far safer method of transfer and, given the bureaucratic idiosyncrasies of some or all of the Plan or institutional personnel, the IRA-type transfer may ultimately take much longer and be detrimental to your client through no fault of your own.

Sample Modification Agreement

FORM III. Modification Agreement

WHEREAS, [name and address of both parties] entered into a Separation Agreement dated as of [_______ ] (the “Agreement”);

WHEREAS, a final Judgment of Divorce was entered in the Supreme Court of the State of New York, County of [____________ ] (Index No. [______ ]) on [_____] (the “Judgment”), pursuant to which the Agreement was incorporated into the Judgment, and survived and did not merge into the Judgment;

WHEREAS, pursuant to the Agreement, [transferor] acknowledges and represents that, inter alia, [transferee] has a current [____ %] beneficial interest in the following plan, which has accrued entirely during the marriage and which is qualified under Section 401(a) of the Code, in which the Husband is currently a participant: [name of plan, in whose name maintained and account] {the “Plan”};

WHEREAS, the Agreement provides that, inter alia, in consideration of all transfers and conveyances of the retirement assets made pursuant to the Agreement, [transferor] shall irrevocably transfer and assign to [transferee] pursuant to a Qualified Domestic Relations Order (“QDRO”) as contemplated in Section 414 (p) of the Internal Revenue Code of 1986, as amended (the “Code”): [___ %] of the cash and securities maintained in the Plan as of the Effective Date of the Agreement, together with all passive earnings, gains and losses thereon as of the date of actual distribution thereof;

WHEREAS, the parties are desirous of distributing to [transferee] his/her [___%] percent interest in the Plan pursuant to the original Separation Agreement;

WHEREAS, the parties are desirous of avoiding the unnecessary expense and delay occasioned with the preparation of a Qualified Domestic Relations Order in order to effectuate such distribution, in connection with the distribution to [transferee] of his/her [___%] percent interest in the Plan as set forth hereinabove and in this Modification Agreement;

WHEREAS, [transferee] maintains a separate Individual Retirement Account in his/her own name with [name of financial institution and branch address and account number], into which his/her [____ %] ) percent interest to and in the Plan as set forth hereinabove and in this Modification Agreement can be deposited without tax ramifications;

WHEREAS, [transferor and transferee] wish to modify the Agreement only insofar as it relates to the actual mechanics of transferring transferor's [___ %] interest in the Plan as set forth hereinabove and in this Modification Agreement;

NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth and in furtherance of the Separation Agreement, the Agreement is hereby modified as follows:

Article [__], paragraph [__] (and its sub-paragraphs) is hereby deleted and replaced with the following:

* * *

[transferor] acknowledges and represents that [transferee] has a current [___%] beneficial interest in the following plan, which has accrued entirely during the marriage and which is qualified under Section 401(a) of the Code, in which [transferor] is currently a participant: (i) the [full name and definition of the Plan maintained in the transferor's sole name under his/her social security number ]. [transferor] further acknowledges and represents that [transferee] has a [____%] current beneficial interest in that portion of the Plan, which is qualified under Section 401(a) of the Code, in which [transferee] is currently a participant, and which was acquired between the date of the parties' marriage on [date] and continues through the present (the “transferee's Interest”). The transferee's interests in the Plan and the transferee's Interest therein shall be distributed pursuant to this Modification Agreement. Except as otherwise provided in the Agreement and in this Modification Agreement, the transferee hereby consents to the transferor's election to waive a qualified joint and survivor annuity form of benefit and a qualified pre-retirement survivor annuity form of benefit under any plan of deferred compensation to which Section 401(a)(11)(B) of the Internal Revenue Code of 1986 (the “Code”) and/or Section 205(b)(1) of the Employee Retirement Income Security Act of 1974 (“ERISA”) shall apply and in which the transferee currently or hereafter may be deemed a vested participant within the meaning of Section 417(f)(1) of the Code and Section 205(h)(1) of ERISA. Except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] further consents to [transferor's] current and future designation of any alternative form of benefit and of beneficiaries other than [transferee] under any of such plans (and to any revocation and/or modification of such designations), including any of such plans referred to in Section 401(a)(11)(B)(iii) of the Code or Section 205(b)(1)(C) of ERISA. Except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] hereby further agrees to execute any and all documents or forms which shall be required, at any time, and from time to time, by any or all such plans; including (but not limited to), any consents required by Section 417(a)(2) of the Code or Section 205(c)(2) of ERISA to effect the payment of benefits in this manner. Except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] hereby acknowledges that (s)he understands the effect of [transferor's] elections and his/her consents thereto. Except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] further acknowledges that (s)he understands that, absent the consent contained in this paragraph, (s)he would have the right to limit his/her consent to the designation by [transferor] of a specific beneficiary or a specific form of benefits, and except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] hereby voluntarily elects to relinquish both such rights.

a. Notwithstanding anything herein to the contrary, and in consideration of all transfers and conveyances of the retirement assets made pursuant to the Agreement and this Modification Agreement:

i. [Transferor] shall direct [name of plan] to transfer 100% of such cash and securities in the Plan as of the date of the distribution thereof into the Individual Retirement Account maintained on behalf of [Transferor] [name, address and account # of transferor's IRA]; and

ii. Immediately upon receipt by the [IRA financial institution] of the transfer from [plan] pursuant to the previous sub-paragraph, [IRA financial institution] shall distribute 50% of all such cash and securities from [transferor's] IRA, together with 50% of all passive earnings, gains and losses thereon as of the date of actual distribution thereof, into the Individual Retirement Account maintained on behalf of [transferee] [name, address, account number of transferee's IRA]

* * *

2. This Modification Agreement and all other obligations and covenants hereunder shall bind the parties hereto, their heirs, executors, administrators, legal representatives and assigns, and shall inure to the benefit of their respective heirs, executors, administrators, legal representatives and assigns.

3. Except as otherwise set forth herein, nothing in this Modification Agreement shall be deemed to alter, modify or otherwise affect the Agreement.

4. No modification, rescission, amendment or waiver of the provisions of this Modification Agreement shall be valid and effective unless in writing signed by the parties hereto.

5. Each of the parties has read this Modification Agreement prior to the signing thereof.

6. Each of the parties hereto, without cost to the other, shall at any time and from time to time hereafter execute and deliver any and all further instruments and assurances and perform any acts that the other party may reasonably request for the purpose of giving full force and effect to the provisions of this Modification Agreement.

7. In the event that any term, condition or provision of this Modification Agreement is declared illegal, void or unenforceable, same shall not affect or impair the other terms, conditions or provisions of this Modification Agreement. The doctrine of severability shall be applied. The parties do not intend by this statement to imply the illegality, voidness or unenforceability of any term, condition or provision of this Modification Agreement.

8. Both parties hereto agree, stipulate and consent to entry of an order, judgment or decree by the Supreme Court of the State of New York, County of [_______ ] or by any other Court of competent jurisdiction, approving, incorporating, and not merging this Modification Agreement into such order, judgment or decree. The party seeking such Court order, judgment or decree shall provide that the provisions of this Modification Agreement be incorporated therein, shall survive and shall not be merged into any such Court order, judgment or decree, and that the entire Modification Agreement shall be placed into evidence and a copy of this Modification Agreement shall be presented to the Court. Such party shall further request that the final order, judgment or decree shall contain a provision specifically reciting the words or substance, “This Modification Agreement is incorporated into, and not merged in, but survives this final [fill in order, judgment or decree, as the case may be], and the parties are hereby ordered to comply with it on its terms at all times and places.” It is expressly understood that the terms and conditions of this Modification Agreement are to be incorporated into any subsequent order, judgment or decree, and shall not be merged therein but shall survive any such final order, judgment or decree.

9. The parties acknowledge that each has received independent legal advice in connection with this Modification Agreement by counsel of his or her own choice. Transferor has been represented by [______________ ]. Transferee has been represented by [______________ ].

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first above written.

[witnessed signatures, notary pages, certifications, etc, as required by state law]

* * *

Accordingly, if the transfer is to be made pursuant to a stipulation or agreement, the safest way to avoid undue hassle and delay from the relevant financial institutions from which those assets are to be obtained is to have a judge “so order” the stipulation or agreement (and, where necessary, the QDRO or DRO), and then to obtain several certified copies of the order which can then be provided to the financial institutions as needed. Where appropriate, the amount of the transfer may first be reduced to judgment before obtaining the court order. Again, confusion may reign as to who is responsible for what; do not assume that your adversary has taken care of submitting the “so ordered” QDRO's to the court or to the Plan. Just assume that you will have to take care of everything yourself.

Completion of the Transfer

Counsel should always insist that the financial institution provide counsel with written confirmation of the actual transfer. Most financial institutions will not offer any resistance to this demand because they are anxious to let attorneys know that they have completed their assigned task so that they will not be pestered by attorneys again, at least in the matrimonial case. If there are any problems in effectuating the transfer because of any perceived inaction or improper action by a particular financial institution, first contact the in-house legal staff (if any), or if possible, that entity's outside counsel. If that does not resolve the problem, communication may be needed with the relevant regulatory agency or agencies (which may include both governmental and industry agencies). Given the goals of the financial institutions noted at the outset of this article, such problems should be rare indeed and should be resolved fairly rapidly.

Once the transfer is completed, counsel for the recipient spouse should provide copies of the transfer confirmations and/or checks to opposing counsel. A clear record should be made as to the amount transferred, the amount of all necessary deductions made from the relevant party's share(s), and the purpose of those deductions (eg, broker's commissions, Federal withholding taxes, penalties, etc.). At that point, you will have accomplished your mission of transferring the securities at issue without bearing the brunt of anyone's wrath, and the transfer will have been made without further ado.

Part Two of a Two-Part Article

The first part of this article discussed the initial steps, documents and forms for transferring securities in the course of the equitable distribution of assets involved in matrimonial litigation. This conclusion addresses deferred compensation plans and provides forms for the completion of the transfer.

Deferred Compensation Plans

Transfers from pensions, annuity funds or other deferred compensation plans may be complex. Once the fair market (cash) value of the particular asset at issue is determined, the fund or plan may prohibit the desired transfer unless it has first received a QDRO (Qualified Domestic Relations Order — or simply a Domestic Relations Order). It does little good to argue with the firm or with opposing counsel about obtaining such orders. It is also always best to avoid confusion as to who is responsible for preparing, paying for, submitting to the Plan Administrator for pre-approval, filing and obtaining the signed Orders from the court, and sending certified copies to the parties and the Plan, ie, the rather onerous mechanics of such paperwork (despite whether the financial firm itself delays in notifying counsel that such an order is now needed for its internal purposes). In fact, any delay in preparing, submitting, filing, and submitting to the firm their required order may cost your client money, particularly in a declining market. In order to avoid incurring your client's wrath — whether or not it is deserved — always send the firm and opposing counsel documents confirming what is to be done; utilize overnight mail to have proof of what has been done, and prepare “ticklers” in your calendar to follow up on the transfer.

It is always an unpleasant surprise to learn subsequently that your opponent has lost the paperwork and wants you to send it to him/her again and again, thus incurring your client's continued anger at being billed for your time and disbursements to accomplish this mission.

If the fund or plan views the transfer as an early withdrawal/liquidation and transfer of plan assets, or if the distribution is deemed to be a permitted execution of excepted assets in order to enforce a judgment or order under certain state laws, the fund or plan may agree to make the transfer without a QDRO. However, the fund or plan will probably still demand a certified copy of a court order directing the particular transfer. Just as in the case of securities accounts, counsel should obtain the required information and forms from the fund or plan prior to submission of the order for the court's signature. The writings and traceable mail techniques described above should also be followed, again, to avoid any question in anyone's mind that you have performed the required tasks.

There are some transferors who may have obtained the permission from the relevant institution to transfer securities out of a deferred compensation plan directly into the transferor's IRA, particularly where the transferor is no longer employed there. The transferor states that he/she will then transfer the requisite proportion of the securities into the transferee's IRA after the full (or agreed upon percentage) is transferred by the Plan to his/her IRA. Unless such an arrangement is set forth in the original separation agreement, there is nothing to prevent the transferor from keeping all the transferred funds in his or her IRA. Counsel should prepare a proper modification agreement, obtain written approval by the Plan of the modification agreement and the requisite forms from the financial institution where the transferor's IRA is located, which the transferor should execute in the presence of the transferee spouse for maximum protection to the transferee. However, a QDRO duly signed by the court and sent to the Plan Administrator and the financial institution where the recipient account is located is a far safer method of transfer and, given the bureaucratic idiosyncrasies of some or all of the Plan or institutional personnel, the IRA-type transfer may ultimately take much longer and be detrimental to your client through no fault of your own.

Sample Modification Agreement

FORM III. Modification Agreement

WHEREAS, [name and address of both parties] entered into a Separation Agreement dated as of [_______ ] (the “Agreement”);

WHEREAS, a final Judgment of Divorce was entered in the Supreme Court of the State of New York, County of [____________ ] (Index No. [______ ]) on [_____] (the “Judgment”), pursuant to which the Agreement was incorporated into the Judgment, and survived and did not merge into the Judgment;

WHEREAS, pursuant to the Agreement, [transferor] acknowledges and represents that, inter alia, [transferee] has a current [____ %] beneficial interest in the following plan, which has accrued entirely during the marriage and which is qualified under Section 401(a) of the Code, in which the Husband is currently a participant: [name of plan, in whose name maintained and account] {the “Plan”};

WHEREAS, the Agreement provides that, inter alia, in consideration of all transfers and conveyances of the retirement assets made pursuant to the Agreement, [transferor] shall irrevocably transfer and assign to [transferee] pursuant to a Qualified Domestic Relations Order (“QDRO”) as contemplated in Section 414 (p) of the Internal Revenue Code of 1986, as amended (the “Code”): [___ %] of the cash and securities maintained in the Plan as of the Effective Date of the Agreement, together with all passive earnings, gains and losses thereon as of the date of actual distribution thereof;

WHEREAS, the parties are desirous of distributing to [transferee] his/her [___%] percent interest in the Plan pursuant to the original Separation Agreement;

WHEREAS, the parties are desirous of avoiding the unnecessary expense and delay occasioned with the preparation of a Qualified Domestic Relations Order in order to effectuate such distribution, in connection with the distribution to [transferee] of his/her [___%] percent interest in the Plan as set forth hereinabove and in this Modification Agreement;

WHEREAS, [transferee] maintains a separate Individual Retirement Account in his/her own name with [name of financial institution and branch address and account number], into which his/her [____ %] ) percent interest to and in the Plan as set forth hereinabove and in this Modification Agreement can be deposited without tax ramifications;

WHEREAS, [transferor and transferee] wish to modify the Agreement only insofar as it relates to the actual mechanics of transferring transferor's [___ %] interest in the Plan as set forth hereinabove and in this Modification Agreement;

NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth and in furtherance of the Separation Agreement, the Agreement is hereby modified as follows:

Article [__], paragraph [__] (and its sub-paragraphs) is hereby deleted and replaced with the following:

* * *

[transferor] acknowledges and represents that [transferee] has a current [___%] beneficial interest in the following plan, which has accrued entirely during the marriage and which is qualified under Section 401(a) of the Code, in which [transferor] is currently a participant: (i) the [full name and definition of the Plan maintained in the transferor's sole name under his/her social security number ]. [transferor] further acknowledges and represents that [transferee] has a [____%] current beneficial interest in that portion of the Plan, which is qualified under Section 401(a) of the Code, in which [transferee] is currently a participant, and which was acquired between the date of the parties' marriage on [date] and continues through the present (the “transferee's Interest”). The transferee's interests in the Plan and the transferee's Interest therein shall be distributed pursuant to this Modification Agreement. Except as otherwise provided in the Agreement and in this Modification Agreement, the transferee hereby consents to the transferor's election to waive a qualified joint and survivor annuity form of benefit and a qualified pre-retirement survivor annuity form of benefit under any plan of deferred compensation to which Section 401(a)(11)(B) of the Internal Revenue Code of 1986 (the “Code”) and/or Section 205(b)(1) of the Employee Retirement Income Security Act of 1974 (“ERISA”) shall apply and in which the transferee currently or hereafter may be deemed a vested participant within the meaning of Section 417(f)(1) of the Code and Section 205(h)(1) of ERISA. Except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] further consents to [transferor's] current and future designation of any alternative form of benefit and of beneficiaries other than [transferee] under any of such plans (and to any revocation and/or modification of such designations), including any of such plans referred to in Section 401(a)(11)(B)(iii) of the Code or Section 205(b)(1)(C) of ERISA. Except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] hereby further agrees to execute any and all documents or forms which shall be required, at any time, and from time to time, by any or all such plans; including (but not limited to), any consents required by Section 417(a)(2) of the Code or Section 205(c)(2) of ERISA to effect the payment of benefits in this manner. Except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] hereby acknowledges that (s)he understands the effect of [transferor's] elections and his/her consents thereto. Except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] further acknowledges that (s)he understands that, absent the consent contained in this paragraph, (s)he would have the right to limit his/her consent to the designation by [transferor] of a specific beneficiary or a specific form of benefits, and except as otherwise provided in the Agreement and in this Modification Agreement, [transferee] hereby voluntarily elects to relinquish both such rights.

a. Notwithstanding anything herein to the contrary, and in consideration of all transfers and conveyances of the retirement assets made pursuant to the Agreement and this Modification Agreement:

i. [Transferor] shall direct [name of plan] to transfer 100% of such cash and securities in the Plan as of the date of the distribution thereof into the Individual Retirement Account maintained on behalf of [Transferor] [name, address and account # of transferor's IRA]; and

ii. Immediately upon receipt by the [IRA financial institution] of the transfer from [plan] pursuant to the previous sub-paragraph, [IRA financial institution] shall distribute 50% of all such cash and securities from [transferor's] IRA, together with 50% of all passive earnings, gains and losses thereon as of the date of actual distribution thereof, into the Individual Retirement Account maintained on behalf of [transferee] [name, address, account number of transferee's IRA]

* * *

2. This Modification Agreement and all other obligations and covenants hereunder shall bind the parties hereto, their heirs, executors, administrators, legal representatives and assigns, and shall inure to the benefit of their respective heirs, executors, administrators, legal representatives and assigns.

3. Except as otherwise set forth herein, nothing in this Modification Agreement shall be deemed to alter, modify or otherwise affect the Agreement.

4. No modification, rescission, amendment or waiver of the provisions of this Modification Agreement shall be valid and effective unless in writing signed by the parties hereto.

5. Each of the parties has read this Modification Agreement prior to the signing thereof.

6. Each of the parties hereto, without cost to the other, shall at any time and from time to time hereafter execute and deliver any and all further instruments and assurances and perform any acts that the other party may reasonably request for the purpose of giving full force and effect to the provisions of this Modification Agreement.

7. In the event that any term, condition or provision of this Modification Agreement is declared illegal, void or unenforceable, same shall not affect or impair the other terms, conditions or provisions of this Modification Agreement. The doctrine of severability shall be applied. The parties do not intend by this statement to imply the illegality, voidness or unenforceability of any term, condition or provision of this Modification Agreement.

8. Both parties hereto agree, stipulate and consent to entry of an order, judgment or decree by the Supreme Court of the State of New York, County of [_______ ] or by any other Court of competent jurisdiction, approving, incorporating, and not merging this Modification Agreement into such order, judgment or decree. The party seeking such Court order, judgment or decree shall provide that the provisions of this Modification Agreement be incorporated therein, shall survive and shall not be merged into any such Court order, judgment or decree, and that the entire Modification Agreement shall be placed into evidence and a copy of this Modification Agreement shall be presented to the Court. Such party shall further request that the final order, judgment or decree shall contain a provision specifically reciting the words or substance, “This Modification Agreement is incorporated into, and not merged in, but survives this final [fill in order, judgment or decree, as the case may be], and the parties are hereby ordered to comply with it on its terms at all times and places.” It is expressly understood that the terms and conditions of this Modification Agreement are to be incorporated into any subsequent order, judgment or decree, and shall not be merged therein but shall survive any such final order, judgment or decree.

9. The parties acknowledge that each has received independent legal advice in connection with this Modification Agreement by counsel of his or her own choice. Transferor has been represented by [______________ ]. Transferee has been represented by [______________ ].

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first above written.

[witnessed signatures, notary pages, certifications, etc, as required by state law]

* * *

Accordingly, if the transfer is to be made pursuant to a stipulation or agreement, the safest way to avoid undue hassle and delay from the relevant financial institutions from which those assets are to be obtained is to have a judge “so order” the stipulation or agreement (and, where necessary, the QDRO or DRO), and then to obtain several certified copies of the order which can then be provided to the financial institutions as needed. Where appropriate, the amount of the transfer may first be reduced to judgment before obtaining the court order. Again, confusion may reign as to who is responsible for what; do not assume that your adversary has taken care of submitting the “so ordered” QDRO's to the court or to the Plan. Just assume that you will have to take care of everything yourself.

Completion of the Transfer

Counsel should always insist that the financial institution provide counsel with written confirmation of the actual transfer. Most financial institutions will not offer any resistance to this demand because they are anxious to let attorneys know that they have completed their assigned task so that they will not be pestered by attorneys again, at least in the matrimonial case. If there are any problems in effectuating the transfer because of any perceived inaction or improper action by a particular financial institution, first contact the in-house legal staff (if any), or if possible, that entity's outside counsel. If that does not resolve the problem, communication may be needed with the relevant regulatory agency or agencies (which may include both governmental and industry agencies). Given the goals of the financial institutions noted at the outset of this article, such problems should be rare indeed and should be resolved fairly rapidly.

Once the transfer is completed, counsel for the recipient spouse should provide copies of the transfer confirmations and/or checks to opposing counsel. A clear record should be made as to the amount transferred, the amount of all necessary deductions made from the relevant party's share(s), and the purpose of those deductions (eg, broker's commissions, Federal withholding taxes, penalties, etc.). At that point, you will have accomplished your mission of transferring the securities at issue without bearing the brunt of anyone's wrath, and the transfer will have been made without further ado.