Qualified Domestic Relations Order
What is a QDRO
A QDRO (Qualified Domestic Relations Order) is a court order typically issued as part of a divorce or legal separation case. A QDRO serves to divide retirement or pension plan assets between divorcing spouses.
In a divorce in Georgia, retirement benefits such as a 401(k) or a pension plan involved, may be considered marital property and equitable distribution division. The QDRO establishes the alternate other spouse's right to receive a portion of the retirement benefits. The QDRO specifies the amount or percentage of the benefits to be paid to the other spouse. Additionally, it provides instructions to the Plan administrator on how to distribute the funds.
Not all retirement plans require a QDRO for division. For plans covered by the Employee Retirement Income Security Act (ERISA), a QDRO is typically required. The QDRO ensures that the division of retirement assets complies with federal laws and regulations governing these plans. If the QDRO is not properly prepared and approved by the court, the plan administrator may not recognize the ex-spouse's claim to a portion of the benefits.
QDROs are complex legal documents, and individuals seeking to obtain a QDRO should consult with legal and financial professionals to ensure that the order is correctly drafted and implemented in accordance with applicable laws.
Who is Responsible for Filing a QDRO?
When a spouse has a retirement account(s) it may be subject to equitable distribution. Anyone getting a divorce should advise their lawyer of all assets, whether they appear to be held solely or jointly. If a QDRO is fitting, your lawyer can draft the papers and make it part of your divorce settlement.
Who Pays QDRO Fees in Divorce
As with most anything that is part of a divorce settlement, everything is negotiable. Fees could be paid by either party or split.