QDRO
Qualified Domestic Relations Order
Our firm takes pride in having expertise with QDROs, a complex and difficult financial aspect of divorce many attorneys choose not to work with. We not only assist our own clients with QDROs, Chris also serves as a consultant for other family law practices who need QDRO assistance.
What Is a QDRO?
The purpose of a QDRO is to recognize an ex-spouse’s interest in the participant’s qualifying retirement plan. This kind of order may be necessary as part of divorce proceedings to specify the division of retirement assets.
Do I Need a QDRO?
Not all divorces require a QDRO for division of assets, and a QDRO is not required for every type of retirement plan.
A QDRO is only required for employee benefit or pension plans subject to ERISA (Employee Retirement Income Security Act), which is the federal law governing private sector pensions. This means that in general, a divorce only requires a QDRO for division of benefits held in job related plans, including:
Traditional pensions
401(k)
403(b)
Employee stock ownership plans (ESOP)
Profit sharing plans
A QDRO is recommended, but not required, for other types of retirement assets. Chris has the expertise to walk you through the options and make the best choice for your individual needs.
What Kind of Retirement Plans Do You Work With?
Our office has experience with QDROs for a wide range of retirement assets and professions, including:
Private employers
Municipalities
Labor unions
First responders
School systems
Divorce Lawyer’s Role In QDRO
It is best to consult a family law attorney experienced with financial settlements to determine the advantages and disadvantages of dividing a retirement plan.
Who Does a QDRO Lawyer Serve?
In QDRO cases, our office may represent:
The spouse who is the plan participant
The spouse who will receive a portion of a participant’s plan
Chris also provides consultations for attorneys seeking QDRO assistance for their divorce clients.
What Does a QDRO Lawyer Do?
When working with a divorce client on a QDRO, our office will:
Assist with valuation of the retirement benefits
Recommend division of assets
Review and prepare court documents
Ensure the assets are disbursed as ordered
QDRO Process and Timing
QDROs involve a complicated process that requires collaboration from multiple sources. It is very important for a divorce attorney to have a full understanding of how it works and where they can help move things along more efficiently.
How Long Does a QDRO Take?
It is common for retirement plan administrators to take weeks or even months to review and respond to a QDRO proposal. Our firm’s policy is that we do not normally enter a divorce judgment until we have received pre-approval on any proposed QDRO.
In order to streamline this process, Chris works with your consultant and retirement plan administrator as early as possible to obtain the necessary consents and information required to draft the QDRO.
What If I’m Already Divorced?
A QDRO may be part of a divorce proceeding, or may be filed individually after a divorce is complete. While there is no statute of limitation on how long after a divorce is finalized that a QDRO can be sought, it is recommended to do so as soon as possible.