Divorce: What Is A QDRO? Why Do I Need One?

by | Jan 22, 2024

Divorce is a complex process. It’s especially complex when dividing retirement plans. One essential element is the use of a Qualified Domestic Relations Order or QDRO. Let’s delve into what a QDRO is, its significance in a divorce, and why it’s an important part of the division of assets.

What is a QDRO?

A Qualified Domestic Relations Order (QDRO) is a legal document signed by a Judge, that directs a Plan Administrator to distribute retirement plan funds such as a 401(k), incident to divorce. It allows a former spouse to access the funds they are due to receive from the employee’s retirement account, without waiting for the employee to leave that job.

The Need for a QDRO Expert

The process of preparing a QDRO demands specific knowledge and expertise. Understanding the various kinds of retirement plans and their rules involves a lot of research. Crafting of a QDRO requires precise wording that adheres to federal guidelines, so as a result, you want to hire a professional who has additional training in this area.

Role of A QDRO in Divorce Settlements

During a divorce, spouses may agree to divide assets such as retirement accounts. You and your spouse should understand all your options to allow you to make informed choices benefiting your future and the whole family.

Timeline for QDRO Preparation

The preparation of a QDRO itself may only take a few weeks, but the entire drafting, review, approval, and qualification process can extend to several months or even a year. It’s recommended that you involve a QDRO professional as early in the process as possible, because they can also assist by suggesting appropriate language to be included in your settlement agreement.

Consequences of Not Having a QDRO

Without a QDRO, accessing retirement funds that were to be received as part of the divorce settlement becomes challenging. The employee might have limited options for transferring funds to the former spouse, potentially causing complications in the distribution process, and incurring penalties for early withdrawals.

In conclusion, a QDRO plays a critical role in facilitating the fair and proper division of retirement assets during a divorce. Hiring a QDRO expert early in the divorce process can streamline the creation of this essential document and can  ensure a smoother transition of funds for you and your former spouse.


For more information or to schedule a consultation with our QDRO professional, call (850) 252-6325.


The Most Important Priorities In Your Divorce

Identify Your Priorities, Before Having Any Discussion With Your Spouse

Knowing your priorities will help you be confident in what to ask for, and what you can live without.

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