Divorce: Why Do I Need a QDRO?
If you or your spouse has a retirement plan through an employer, dividing that account in a divorce requires more than just including it in your settlement agreement. In many cases, you will need a specific court order called a QDRO. Without it, the account cannot be legally divided, and that can lead to problems long after your divorce is finalized.
What Is a QDRO?
A QDRO, or Qualified Domestic Relations Order, is a legal document that allows a retirement plan to transfer a portion of one spouse’s benefits to the other spouse. It applies to employer-sponsored plans like pensions and 401(k)s, but not to IRAs. The QDRO must be carefully prepared, signed by a judge, and then approved by the retirement plan administrator before any division can take place.
Why Your Divorce Settlement Agreement Is Not Enough
Even if your divorce judgment clearly states how a retirement account should be divided, the plan administrator cannot act on that document alone. Only a QDRO gives the administrator the authority to divide the benefits. Without it, the funds stay with the original account holder, and your intended division will not happen.
The QDRO Process Takes Time
A QDRO is a separate legal process that does not happen automatically when your divorce is finalized. After it is drafted, the order must go through a review process with the plan administrator. If it does not meet the plan’s specific requirements, it may need to be revised before it can be approved. This process can take weeks or even months, and the account will not be divided until it is complete.
Don’t Wait Until It’s Too Late
Some people finalize their divorce and never follow through with the QDRO. Years later, they may discover that the retirement account was never divided. By then, it may be harder or even impossible to correct. If you are still in the negotiation stage, it is a good idea to involve someone familiar with QDROs early so the language in your settlement agreement matches what the plan requires.
Contact the Law Offices of Robert J. Merlin, P.A.
At the Law Offices of Robert J. Merlin, we work with divorcing spouses who need a clear and dependable process for dividing assets, including retirement benefits. If you have questions about how a QDRO fits into your divorce, contact Robert J. Merlin at (305) 448-1555 to schedule a consultation.
The Law Offices of Robert J. Merlin, P.A. are located at 250 Catalonia Avenue, Suite 706, Coral Gables, FL 33134.
Bob Merlin is a Florida Bar Board Certified Family Law Specialist, he practices in the areas of divorce, time-sharing of children and parenting plans, child support, alimony, paternity, pre-nuptial and post-nuptial agreements, and cohabitation/partnership agreements.
As an experienced Collaborative attorney, Bob continually hones his skills in the Collaborative Process and trains other professionals how to become a Collaborative professional as he is.
“My goal is to help divorcing and other family law clients make well-informed decisions so they experience a more efficient process and feel more in control over their futures.”
