Dividing assets is one of the most challenging and contentious aspects of getting a divorce, especially for couples who have accumulated significant investments and retirement accounts during their marriage.  Along with houses, cars, and cash savings, courts divide retirement accounts and pension benefits in divorce cases.  When appropriate, the court can issue a qualified domestic relations order to ensure spouses (and their children in some situations) receive a portion of these assets.

What Is a Qualified Domestic Relations Order?

A qualified domestic relations order (QDRO) is a court order or judgment that recognizes an alternate payee's right to receive part or all of someone else's retirement plan benefits.  Courts issue QDROs pursuant to domestic relations law which relates to the provision of marital property rights, alimony payments, or child support.  Qualified domestic relations orders apply to pension plans from employers in private industry and to other types of retirement plans, such as 401(k) plans and certain profit-sharing and money-purchase plans.  There are some types of retirement accounts that can be divided without a QDRO.  A skilled family law attorney will determine whether your retirement plan is subject to division by way of a QDRO.

Qualified Domestic Relations Order Conditions

A QDRO usually stems from a divorce decree and the person who receives benefits through a QDRO must be either a spouse, child, former spouse, or another financial dependent of the plan participant. A qualified domestic relations order cannot require the plan to issue a greater benefit than the amount to which the participant already is entitled. It also cannot take funds from another recipient who is receiving them through a previously-issued QDRO.

The attorneys at Kleintop & Luria LLP in Honolulu, HI, focus exclusively on family law, giving them the opportunity to provide high-quality legal counsel to every client. To learn more about qualified domestic relations orders and the division of retirement plans, call (808) 524-5183 to schedule a consultation. Visit the firm’s website for more information about their areas of practice, including premarital agreements, divorce, and child support.