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What is a QDRO?
By Steven Pradell
If you are in the process of obtaining a divorce or a dissolution resolving your divorce may involve having a judge approve of a legal document called a "QDRO." A QDRO (sometimes pronounced "quadro") stands for "qualified domestic relations order."
During a marriage one or both spouses may earn retirement benefits. In Alaska, retirement benefits earned during a marriage until the date of separation normally are considered to be marital property, capable of being divided by the court in a divorce proceeding. However, retirement funds normally can not be distributed to non-participants in the plan. This is why Congress created the QDRO concept: to allow former spouses to collect their share of the marital portion of retirement benefits.
A QDRO is an order which requires a retirement plan to distribute benefits to what is called an "alternate payee." QDRO's must be prepared carefully so that they comply both with the Federal laws and with the specific language of the individual plan in which the retirement funds are located. There are many different retirement plans, including ERISA qualified plans, Government plans, Keogh Plans, SEP's and IRA's.
If you or your spouse earned retirement during your marriage and you are considering divorce, it may be wise to speak with an attorney regarding QDRO issues.
This article is not intended to provide legal advice and should not be relied on for that purpose.