Qualified Domestic Relations Orders (QDRO)

A Qualified Domestic Relations Order (QDRO) is a legal document used in family law, specifically during divorce or separation. It allows for the division of retirement plan assets between spouses. A QDRO specifies how a retirement account, like a pension or 401(k), should be split, ensuring that the non-employee spouse receives their fair share. This is important because without a QDRO, the retirement plan may not recognize the other spouse's claim. A properly drafted QDRO helps avoid taxes and penalties when the funds are transferred between accounts.