When individuals divorce, one spouse is often awarded a portion of the other spouse’s retirement account or benefits.
A Qualified Domestic Relations Order (“QRDO”) or Domestic Relations Order (“DRO”) is a special court order issued after the entry of a final Judgment of Divorce that provides for the distribution of a retirement account. If the Judgment of Divorce directs the distribution of a retirement account or benefits, whether it is a defined contribution plan (e.g. 401(k), 403(b), profit sharing plans) or a defined benefit plan (e.g. pension), a QDRO or DRO is necessary to effectuate the distribution of the plan to avoid suffering a tax liability.
Copps DiPaola Silverman, PLLC recognizes the complexity of preparing QDROs and DROs that conform to your Judgment of Divorce and the specific requirements of the plan administrator. The attorneys at Copps DiPaola Silverman, PLLC can provide you with the legal advice, guidance, and assistance in securing and obtaining a QDRO or DRO that is beneficial to you as the participant of the plan or, as the former spouse seeking distribution.
It is imperative that you obtain and implement a QDRO or DRO as soon as possible after your divorce is completed to make sure that the plan administrator is on notice and your rights to your former spouse’s retirement account or benefits are protected.