Have you heard you need a qualified domestic relations order, buy you don’t know what it is? See this FAQ.
What is a qualified domestic relations order?
A qualified domestic relations order is a special type of court order that allows a person getting divorced to remove retirement account funds, without early withdrawal penalty, to give to the other spouse as a division of marital assets.
A qualified domestic relations orders are also known as a QDRO, pronounced “KWAH-dro.”
Where do I get a QDRO?
Most divorce lawyers do not draft QDROs because doing so requires specialized knowledge.
Furthermore, after a QDRO is drafted and entered by the Court, it must be processed by the plan administrator. Most divorce lawyers are not familiar with the processing of QDROs because they do not do it often enough.
If you need a QDRO, you can contact us to start the processes of getting a QDRO for your divorce. You can contact us here.
How much does a QDRO cost?
You can see the cost of our services here.
How long does it take to get a QDRO?
A QDRO can take several weeks to draft. The QDRO drafter requires information from the people dividing the QDRO. However, the QDRO drafter also must communicate with the retirement plan administrator to determine their requirements for QDROs.
When will the money be transfered?
After the plan administrator receives the QDRO, it might take them several weeks to effectuate the transfer of funds.
What are the steps to using a QDRO?
Generally, the steps to using a QDRO are as follows:
- Draft the QDRO
- Get approval from both parties to enter the QDRO
- Have the QDRO entered in court
- Transmit the QDRO to the retirement plan administrator for procecss
- Funds transferred per the QDRO