QDRO- Qualified Domestic Relations Order

A Qualified Domestic Relations Order, (QDRO), is a Court Order that legally allows a retirement plan to distribute money to someone other than the person who is on the plan, such as a former spouse. A Divorce Decree states how the retirement benefits are to be divided, but a QDRO has specific language for each plan and is required to be signed by a Judge, after the divorce decree is signed.

We can prepare a QDRO for 401(k), 403(b) & 457 plans, ERISA, State and Federal civil service plans, police departments, fire departments, unions, etc.

We will handle all of the following;

Initial drafting of the QDRO
Submission of QDRO to Plan for approval letter
Filing in the Superior Court for Judge's signature
Obtaining copies for parties and certified copy for the Plan(s)

Our fee includes everything but court costs (filing fee), most cases there is not usually any filing fee if the QDRO is submitted either with the Decree at the time the Decree is signed by the judge in your case..
Getting started is simply.

Simply contact the Plan Administrator and ask for a "Model Plan." This packet will provide all of the specific language that is required by the plan, as well as any other specific requirements they may have.

QDRO and Divorce

When a couple in Arizona chooses to end their marriage, they are often required to divide their community property. For some belongings, such as property and bank accounts, this division process might seem relatively straightforward. However, dividing assets like retirement plans might require additional work. When handling a retirement account, it may be necessary to necessary to seek a qualified domestic relations order.

A QDRO is a type of domestic relations order, which is a judgement or decree that outlines decisions that are associated with child support, alimony, property rights and other family law arrangements. Specifically, QDROs recognize the right of one person, who is known as the alternate payee, to receive a portion of another person's retirement plan. Typically, these orders must meet a number of requirements under state law and must be recognized by a state court.

Only certain individuals may be designated as an alternate payee. The field is typically limited to the retirement plan participant's spouse, former spouse or child. In addition, the designation might be assigned to a different party, but this party must be recognized as a dependent of the participant. In some cases, if the alternate payee is a minor or declared incumbent, payments made through a QDRO might also be given to that payee's guardian.

It may be possible for a divorcing couple to include a QDRO in a provision of their divorce settlement agreement covering the division of assets. Those who are interested in understanding how a QDRO might be used in their property settlement as well as the requirements for it to be held legally enforceable might benefit from discussing their case with an attorney who has family law experience.

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