How to Get a QDRO after a Divorce

Divorce can be a difficult and complicated process, especially when it comes to dividing assets. One of the most complex assets to divide is a 401(k) or pension plan. If you or your spouse have a retirement plan, the court may issue a QDRO after the divorce. A QDRO, or qualified domestic relations order, is a legal document that allows the retirement plan to be divided without incurring taxes or penalties. In this article, we will discuss how to get a QDRO after a divorce.

Step 1: Determine if a QDRO is necessary

Not all retirement plans require a QDRO. Some plans, such as IRAs, can be divided using a divorce decree or settlement agreement. However, most employer-sponsored retirement plans, such as 401(k)s or pensions, require a QDRO. It is important to consult with a qualified divorce attorney to determine if a QDRO is necessary for the retirement plan in question.

Step 2: Draft the QDRO

The QDRO must be drafted in accordance with the terms of the retirement plan and the divorce decree or settlement agreement. It is critical to hire a licensed attorney who specializes in QDROs to draft the document. The QDRO must be approved by the plan administrator and the court before it can be implemented.

Step 3: Serve the QDRO

Once the QDRO has been drafted, it must be served on the plan administrator for approval. The QDRO must meet the requirements of the plan administrator and the court before it can be implemented. The administrator may request modifications to the QDRO before approving it.

Step 4: Implement the QDRO

After the plan administrator approves the QDRO, the retirement plan can be divided. The plan administrator will create separate accounts for each spouse, and the funds will be transferred accordingly. It is important to review the account statements and make sure that the funds were divided correctly.

Conclusion

A QDRO is a critical component in dividing retirement plans after a divorce. It is a complex legal document that must be drafted correctly to avoid delays, penalties, or tax consequences. It is recommended to work with a qualified divorce attorney who specializes in QDROs to ensure that the QDRO is drafted correctly and meets the requirements of the plan administrator and the court.