A Qualified Domestic Relations Order (QDRO) is a legal document that allows retirement benefits to be divided between spouses after a divorce. It ensures that a portion of a retirement account is legally assigned to an ex-spouse without tax penalties.

If your divorce involves dividing a retirement account like a 401(k), pension, or other employer-sponsored plan, you likely need a QDRO to ensure the division is legally recognized.

Some, but not banks holding IRAs require a QDRO, sometimes they will transfer the funds with just the divorce decree. Call or visit with the bank or financial institution and ask if the decree is enough or if they need a QDRO. If they do need a QDRO, we can help.

The timeline varies, but typically, a QDRO can take anywhere from 1-3 months. Two months is normal, and some are faster and some are much slower.  We do our part quickly, but sometimes it take the judge some extra time to sign the QDRO, and some plan administrators are quite slow in reviewing, approving, and dividing the funds into a separate account. We do our part in drafting and submitting it to the court and the plan administrator quickly, but some of the process is out of our hands.

We offer transparent and affordable pricing.  $500 for each QDRO needed.  That includes drafting, submitting to the parties for signature (or the attorneys if you are represented), submitting to court, and sending to the plan administrator.  Our flat fees are for uncontested QDROs only.  We do not negotiate “net QDRO transfers” or any other matters that are not agreed-upon by both parties.  This is how we keep the prices low.  For contested matters, you will be referred back to your attorneys or the court to resolve.

While it’s possible, QDROs are complex legal documents that must comply with both federal law and the specific retirement plan’s requirements. Errors can lead to delays or financial losses, so it’s recommended to have a professional prepare it.

QDROs are used for employer-sponsored plans such as 401(k)s, pensions, retirement annuities, TSP plans, FERS, and other “qualified” profit-sharing plans. They are usually not needed for IRAs, which follow different division rules.  You can check with the financial institution where the funds or benefits are held and ask to be transferred to the retirement or QDRO team and they can let you know.

If a QDRO isn’t filed and approved, the retirement account remains under the original owner’s control, and the ex-spouse may not receive their share as intended. This could lead to financial disputes later on.

Yes, both parties (or their attorneys) typically need to agree on the terms of the QDRO before it is submitted to the court for approval.

In some cases, yes, but modifications usually require court approval and agreement from both parties. Although rare, an example may be that the QDRO is not approved by the plan administrator because the name of the plan was not correct or a loan against the account was not included in the math for division.  We can amend the QDRO and submit the amended (modified correcting any mistakes) to court again, and again to the plan administrator. It’s important to get the QDRO right the first time to avoid delays and extra legal fees. But, don’t worry, except in rare circumstances, we will help you though the amendment and resubmission process.

Start by going here, and we’ll guide you through the process. We’ll review your divorce decree, review your account statement, and ensure your QDRO is completed accurately and efficiently.