What is a QDRO?

A Qualified Domestic Relations Order (QDRO)
A Qualified Domestic Relations Order (QDRO), is a judicial executed Order that recognizes or creates the existence of an Alternate Payee’s right to receive, or assign to an Alternate Payee a portion or all of the benefits payable with respect to a participant under a retirement plan; governed by The Employee Retirement Income Security Act of 1974 (ERISA). These Domestic Relations Orders are made pursuant to state domestic relations law, which includes community property laws, that relates to the provision of child support, alimony payments, or marital property right for benefit of a spouse, former spouse, child or other dependent of a participant.

Common Errors
One of the most common mistakes made during the QDRO process, is determining whether or not the plan has hired a third party administrator. Often the QDRO is sent to the wrong party, and therefore not processed or sent back, which causes you to loose time and patience, with an already stressful issue. Here at QDRO Solutions we understand that expediting this already lengthy process is one of your top priorities, therefore we commit ourselves to getting all the information needed, in reference to the plan administrator and QDRO administrator, so all Orders can be sent and administered by the correct party, without holding up your time and money.

Another common error is the splitting of an IRA. IRAs often do not need an Order; many IRAs just require a transfer form to be completed by both parties for the monies to be transferred, from one account to another. We don’t want you to have to retain us, unless you absolutely have to; here at QDRO Solutions our priority is to save you time and money. Therefore, we want you to be aware that before proceeding with an IRA transfer, we recommend you to contact your IRA administrator and ask whether an Order is needed or not. If an Order were then required, it would be our pleasure to assist you in this process!

Military Pension Orders
When it comes to Military Pension Orders, contrary to popular belief, there is often information that is required to draft and process the Order, that isn’t always taken into consideration during the settlement process. Did you know that the splitting of Military pensions, in regards to marital assets, for an Order directed to the Military, is governed by the 10/10 military rule?

The 10/10 rule states that if you have been married to your spouse for ten years while your spouse has performed creditable military service for at least ten years, you are then eligible for your portion of the divided military retirement pay sent to you from the Defense Finance and Accounting Service (DFAS).

Still Confused?
Here at QDRO Solutions, we don’t expect you to know any of this information, that’s why we take care of all the research and work necessary to make sure your Order is not only drafted correctly, but also entered correctly, so you don’t have to! We know the divorce process isn’t always a smooth one, so let us do the work for you to facilitate!