QDRO: Qualified Domestic Relations Order
What is a “Qualified Domestic Relations Order”?
A Qualified Domestic Relations Order or QDRO as it is commonly abbreviated, is a court order that instructs how to divide retirement benefits between divorcing spouses in the state of California. It recognizes an “alternate payee’s” right to receive all or a portion of the benefits payable under a retirement plan.
Who can be an “alternate payee”?
In the state of California, an alternate payee cannot be anyone other than a spouse or former spouse.
Who is the “administrator” of the plan?
The administrator of the plan will be specifically designated in the plan documents. If the plan documents do not specify an administrator, it may be the employer, association, committee, or joint board of trustees representing the parties maintaining the plan.
How can I find out the “administrator” of the plan?
You can contact your Human resources or benefits department. They can also provide a sample QDRO packet showing how the plan administrator would like the QDRO prepared.
When should a QDRO be done in a divorce proceeding?
After the judgment has been agreed upon and signed by both parties in the divorce proceedings, our office can begin preparing your QDRO. The judgment outlines how the plan or plans should be divided and is the guiding and required document needed to execute a QDRO.
How long does the process take?
A QDRO is a multi-step process and the time frame can differ depending on the plan administrator. After our office prepares a draft, it is sent to the plan administrator for approval. Once the plan is with the administrator, we must wait for them to review the QDRO for approval or corrections. The entire process can take several months.
What is the cost of a QDRO?
The price per QDRO can range from $500 to $800 per plan. The cost depends on several factors, such as who the plan provider is and the scope of work involved in researching and preparing the required documents.
What information do you require for a QDRO?
Our office will provide you with a client form to provide the necessary information required for a QDRO.
This includes but is not limited to:
-names and current addresses of the participant and alternate payee
– Social Security numbers of the participant and alternate payee
-date of birth of the participant and alternate payee
– the exact legal name of the plan to which the order applies
– a copy of the filed divorce judgment with the judge’s signatures
Is there anything a QDRO does not cover?
The order cannot require a plan to provide an alternate payee or participant with any type or form of benefit not otherwise provided under the plan or award any amount that has been previously awarded to another alternate payee.
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