A Qualified Domestic Relations Order (QDRO) is a specialized legal document that divides a plan participant’s retirement benefits following a divorce or legal separation. A QDRO directs a retirement plan administrator to pay a portion of an employee’s retirement benefits to an “alternate payee,” such as a former spouse, child, or other dependent. It is likely that you will need a QDRO to divide retirement funds for plans subject to federal law. Plans subject to federal law include pensions, 401(k)s, 403(b) plans. plans like IRAs or military plans do not require a QDRO to divide them. However, they too may require special documents to divide the plan benefit following a divorce.
Our Services Include:
- Reviewing the plan documents and divorce decree and drafting the QDRO/division order to include specific language required
- Having the QDRO/division order pre-approved by the plan and then the Court, if requested
- Alternatively, we are also able to review a QDRO/division order prepared by another professional, if a party has questions or concerns about the draft
Our Approach
Preparing a QDRO or other documents to divide a retirement plan can be complicated and take several months to prepare and have approved by the plan and the Court. It often takes the plan administrator alone several months to review and approve the draft QDRO/division order. At Parnell, Michels & McKay, we take the time to prepare and review the plan documents and the divorce decree to understand the specific requirements needed for a properly drafted QDRO/division order. Our goal is to ensure the QDRO/division order is drafted correctly the first time, avoiding the need for revisions or redrafts, and avoiding the risk of rejection by the plan.
