 In the emotional and logistical aftermath of divorce, it's easy to overlook the paperwork that comes after the Final Judgment. But if your divorce involves retirement accounts, there's one critical document you should not delay: the Qualified Domestic Relations Order (QDRO).
A QDRO is not just a form—it’s a court order required to divide certain retirement accounts such as 401(k)s, pensions, and other employer-sponsored plans. Delaying the entry of your QDRO could have serious financial consequences. In most cases, QDRO's is provided as a flat fee service.  Qualified Domestic Relations Order (QDRO) is a special court order required to divide certain retirement plan benefits during divorce or separation. It's not just a form—it's a legal judgment, decree, or order that allows a retirement plan to distribute funds to a spouse, former spouse, child, or other dependent of the plan participant for:
If a spouse or former spouse receives benefits under a QDRO, those funds are generally taxable to that recipient (not the participant). They are treated as if the former spouse were the plan participant. If the QDRO distributes funds to a child or dependent, the participant is responsible for the taxes on those distributions. |
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