Wednesday, June 4, 2008


Pension Assets

Pensions that are acquired by either spouse after the marriage and before a judgment of dissolution is entered are presumed to be marital property. QDRO (Qualified Domestic Relations Order) divides this asset.

A court order that recognizes or creates a spouse’s or a former spouse’s right to a portion of a member’s retirement annuity. Commonly referred to as QDRO.

What is a QDRO Be Used For?
A QDRO is a court order that recognizes the right of the ex - spouse to receive all or part of a pension plan that belonged to their ex – spouse.
The QDRO can be used for:

* Providing support payments to an ex – spouse.
* Dividing marital property.

Certain situations have to be met for the QDRO to be valid.

QDROs are subject to ERISA (Employee Retirement Income Security Act) rules and regulatioins.
The QDRO is issued by a state authority, usually a state court through a judgment, court order or divorce decree, which addresses a marital property settlement.
The QDRO must stick to guidelines that are instituted by the pension administrator. Not all court orders are considered qualified domestic relations orders. The plan administrator will make the decision as to whether or not the QDRO qualifies. Often the administrator has their own version of the forms for the QDRO, and your attorney can draft or modify these accordingly. This is a very particular area of law, so speak with your lawyer about specifics.

No comments: