When do I need to get a QDRO form?
Whether you have been handling your divorce in the courtroom, in mediation, or by yourselves, the divorce process should not be fully completed until this professional writes up the QDRO which will explicitly state how the retirement plan (s) will be divided. So please… do not let this aspect of the divorce stress you out.
What is a QDRO and why does it matter in divorce?
A QDRO is a domestic relations order (DRO) which allows one spouse to receive payments from the other spouse’s employee retirement plan after a divorce. The second spouse becomes an alternate payee under the retirement plan.
Who is the alternate payee on a QDRO form?
The most notable examples are government and military pensions. The spouse who owns the plan is called the “participant.” Meanwhile, the non-employee spouse is called the “alternate payee.” The QDRO form tells the sponsor of the retirement plan (sometimes referred to as a “plan administrator”) how to divide the plan if a divorce occurs.
How much does it cost to split a QDRO?
Also know that plan sponsors may charge a fee for dividing the QDRO, which can range from $300 to $1,200. The price depends largely on the specific account and plan administrator, including the simplicity of the process for your QDRO company or attorney.
A QDRO is a domestic relations order (DRO) which allows one spouse to receive payments from the other spouse’s employee retirement plan after a divorce. The second spouse becomes an alternate payee under the retirement plan.
Whether you have been handling your divorce in the courtroom, in mediation, or by yourselves, the divorce process should not be fully completed until this professional writes up the QDRO which will explicitly state how the retirement plan (s) will be divided. So please… do not let this aspect of the divorce stress you out.
The most notable examples are government and military pensions. The spouse who owns the plan is called the “participant.” Meanwhile, the non-employee spouse is called the “alternate payee.” The QDRO form tells the sponsor of the retirement plan (sometimes referred to as a “plan administrator”) how to divide the plan if a divorce occurs.
Also know that plan sponsors may charge a fee for dividing the QDRO, which can range from $300 to $1,200. The price depends largely on the specific account and plan administrator, including the simplicity of the process for your QDRO company or attorney.