QDRO

A Qualified Domestic Relations Order (QDRO) is a legal document used in divorce or separation cases to divide retirement plan benefits between spouses. It instructs the plan administrator on how to fairly allocate a specified portion of the retirement assets to the non-employee spouse or other or beneficiaries. QDROs are important because they ensure the division complies with federal laws (ERISA) and allows the recipient to receive their share without penalties or taxes, similar to a court order but specifically tailored for retirement plans.