Are you trying to keep your divorce informal? Do you wonder why you need a Qualified Domestic Relations Order (QDRO) to divide your retirement accounts? QDROs provide legal safety when dividing retirement assets that are marital property. State and federal law require QDROs for some classes of retirement accounts. In all cases, properly drafted QDROs ensure retirement funds divide correctly.
The Role Of QDROs In Divorce
Employer-sponsored retirement plans covered by the Employee Retirement Income Security Act (ERISA) require a QDRO for asset division. The QRDO establishes who will receive benefits and how the benefits will be divided between the payee and the plan participant. A court or other state authority must approve a QDRO. The retirement plan administrator will then determine if the document can govern your retirement account division.
Although you can divide an Individual Retirement Account without a QDRO, you must obtain a QDRO if you have a plan 403(b) or a 401(k).
Seeking Attorney Help With QDRO Issues
Hiring a Colorado divorce attorney who drafts QDROs can make asset division simpler. If you have multiple retirement accounts scattered across several jobs, they can create a single QDRO that covers all the plans. If you’re concerned about how the split of your retirement account will impact your future quality of life, they can suggest alternate ways to divide marital property. And if you have an account with specific additional requirements to create a viable QDRO, your attorney can help you navigate those tasks successfully.