QDRO’s (Qualified Domestic Relations Orders) are complicated court ordered divisions of retirement accounts. These retirement accounts include 401ks, 403B’s, pension plans and other types of accounts. Proper legal treatment is needed to preserve tax benefits of the plans for each of the separated spouses.

The company that holds the retirement account may provide a prototype order to follow. The parties agree on either an exact amount to be transferred or an amount plus gains and losses since the date of the separation. The initial terms are typically set out in a separate agreement.

The QDRO typically is consented to by both parties then signed by a judge and submitted to the company holding the retirement account. The QDRO if properly drafted prevents immediate taxation of the retirement transfer.

Landon A. Dunn, Attorney At Law can explain QDRO's and provide advice in any aspect of family law. Call us or use our online contact form.