In California divorce cases, a Qualified Domestic Relations Order (QDRO) is a legal order used to divide certain types of retirement or pension benefits between spouses. A QDRO is specifically used for dividing retirement plans that are governed by the Employee Retirement Income Security Act (ERISA), such as 401(k) plans, pension plans, and other employer-sponsored retirement accounts. It allows the non-employee spouse to receive a portion of the employee spouse’s retirement benefits as part of the divorce settlement. A QDRO is a critical document because it ensures that the division of retirement assets is carried out in compliance with both the divorce decree and the retirement plan’s rules.
The QDRO must be approved by the retirement plan administrator, and it specifies the amount or percentage of the retirement benefits that the non-employee spouse is entitled to receive. This can be a fixed dollar amount or a percentage of the retirement benefits that the employee spouse has accumulated during the marriage. Without a QDRO, retirement accounts and pensions may not be divided properly, and the non-employee spouse might not receive their share of those assets. It’s important to note that a QDRO does not apply to all retirement accounts; for instance, individual retirement accounts (IRAs) can typically be divided without a QDRO. However, in cases involving ERISA-governed plans, obtaining and properly executing a QDRO is necessary to ensure that both parties receive their fair share of retirement benefits as part of the divorce settlement.
