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Commonly Asked Questions
What is a “QDRO” and why do I need one when my divorce judgment already provides for the division of retirement plans?
QDRO stands for “Qualified Domestic Relations Order.” It is a special court order that legally authorizes a
retirement plan to split an employee’s benefits and award a portion to a former spouse. To be deemed
“qualified” the QDRO must comply with specific requirements under both federal and state law and the Plan
Administrator’s QDRO guidelines, which are different for every plan. Similar orders called by different names
are used to divide plans for federal and state employees. Divorce judgments, even when they specifically
address the division of retirement assets, do not generally satisfy the above requirements, and will not be
accepted by the Plan Administrator. The preparation of QDROs is a specialized area of family law. Most
family law attorneys are insufficiently experienced in this area to prepare the QDROs themselves, which is
why these matters are usually referred to a QDRO expert, such as our company.
What is our company’s role in the process?
We will first gather from you or your attorney the documents and other information necessary to ensure that
we understand the intended division of assets and to address any issues that may need to be resolved
before we can proceed. We will also contact the Plan Administrator to obtain the retirement plan’s QDRO
guidelines. Once we have all necessary information and our fees are paid, we will draft the QDRO to divide
the assets as set forth in your divorce judgment. Once drafted, we will send the QDRO to you or your
attorney along with a cover letter with important information and instructions. Like your judgment, a QDRO is
a court order which the parties and their attorneys (if any) must sign. Once signed, you or your attorney must
submit the QDRO to the court for the judge to sign it as well. After the judge has signed the QDRO, you or
your attorney must then send the court entered QDRO to the Plan Administrator. Note that the retirement
plan will not segregate an account or pay out any benefits until they have a court-entered/judge-signed
QDRO that has been reviewed and approved by the Plan Administrator. Though your QDRO will be prepared
by an attorney in our office, we do not represent either party and do not practice in the courts. Unless the
QDRO has to be revised for some reason, our role in this process ends when we send the QDRO to you.
How long does the process take and when will I receive the funds I am awarded?
The division of a retirement plan consists of three parts and is not a fast process. The first part of the process
is getting the QDRO drafted, which is our role. It takes us approximately three weeks from the date we have
both full payment and all necessary information to prepare the QDRO. We will make every effort to request
the necessary information within a reasonable time, but we have no control over when the information is
provided to us, and we have no authority to compel an attorney, a party, or the Plan Administrator to provide
the requested information. Nor can we compel anyone to pay our fees. Once we send you or your attorney
the QDRO, the second part of the process begins. The length of time it will take for you to get the QDRO
signed by everyone, entered with the court, and sent to the Plan Administrator is dependent on you and the
court. The third part of the process consists of the Plan Administrator reviewing, approving, and
implementing the QDRO. Once the Plan Administrator receives the QDRO, it can sit on someone’s desk for
as long as they deem reasonable before they decide if the QDRO is qualified and approved. That could be 2
weeks, 2 months, or even longer. Though most Plan Administrators make their decision within 30-60 days,
there is no legal time limit on this decision and, again, we have no control over how long it will take.
Can you guarantee that the QDRO will be approved the first time it is drafted?
No, but we make every effort to ensure it is done right the first time and will revise it at no charge until it has
been approved. When the plan allows it, we send an unsigned copy of the QDRO to the Plan Administrator
for review and “preapproval” so that any issues can be addressed before you and your attorneys sign the
QDRO.