A Qualified Domestic Relations Order (QDRO) is a Court Order which allows a former spouse to collect money from a retirement account.

A QDRO is generally required for any retirement plan covered by the Employee Retirement Income Security Act (ERISA). This includes many Pension and 401K Plans.

A QDRO formally approves a property settlement agreement between parties which details how retirement assets will be divided between the plan participant and his former spouse.

The following information is essential to a QDRO:

• The name and address of the retirement plan participant and alternate payee (former spouse)
• The exact name of the retirement plan to which the order applies
• The amount or percentage, or formula for calculating the amount or percentage, to be paid to the former spouse

The Administrator of the retirement plan must approve the QDRO provided it meets the plan’s requirements.

QDRO transfers from a retirement account should not incur early withdrawal penalties.

As the preparation and submission of QDRO’s are a complicated legal matter, parties should utilize attorneys experienced in handling such Orders.

The attorneys at Baaden & Hirschey, P.C. have handled numerous QDRO submissions.