Must the QDRO be a Standalone Document?

Nothing in the ERISA rules requires that a Qualified Domestic Relations Order (QDRO) be issued as a separate judgment, decree or order. And while this might tempt someone to try and incorporate the terms of the #QDRO into the final Judgment of Divorce, there are a few reasons why this is not the preferred way to handle the QDRO.

Size - QDROs are often lengthy documents on their own. They must contain specific ERISA requirements to qualify as a QDRO, and depending on the details of your negotiations, will likely also include much more additional language. The sheer volume of contents makes it unwieldy to incorporate the QDRO into your standard #divorce judgment, without risk of missing an important detail.

Privacy – It is generally good practice to submit a draft QDRO to the plan administrator for pre-approval, before obtaining the court’s signature. If you incorporate the QDRO into the general divorce decree, then you will also be sharing all your divorce details with a total stranger, keeping the QDRO separate allows you to share only what the administrator needs to determine the QDRO’s validity under the terms of the plan.

Logistics & Timing – Often, you may be ready for your final day in court, but not ready with a pre-approved QDRO for the court to sign. In those cases, keeping the QDRO as a separate, standalone document that the court can sign off on at a later date doesn’t jeopardize the finality of your divorce. In fact, many divorce agreements address the non-finality of the QDRO with specific language addressing the current QDRO status and intention to finalize after the divorce is granted.

If you have a QDRO in your future, visit our website to learn more about these retirement account division tools and the services we provide.