A qualified domestic relations order (QDRO) is a court-approved document that specifies how money in retirement accounts will be split in the event of a divorce. The QDRO is used primarily to split assets held in tax-advantaged retirement accounts such as IRAs and 401 (k)s.

A QDRO is a special type of court order that divides certain retirement plan benefits in a divorce. A QDRO is issued in addition to a marital settlement agreement (MSA) or final judgment granting your divorce. It contains specific directions to the retirement plan administrator regarding how the plan should be divided between the spouses.

A model QDRO is a template domestic relations order designed to satisfy all of the statutory requirements of ERISA Section 206 (d) and Internal Revenue Code Section 414 (p). Once approved and signed by a state authority, typically a court, the document will constitute a valid QDRO.

Issued by a state court or authority, a QDRO establishes that one spouse has a claim to some of the other spouse’s retirement plan accounts. A QDRO states the dollar amount or percentage that belongs to the non-participant spouse, called the alternate payee, and the number of payments or time period to which the order applies.

A QDRO is a judgment, decree or order for a retirement plan to pay child support, alimony or marital property rights to a spouse, former spouse, child or other dependent of a participant. The QDRO must contain certain specific information, such as: the participant and each alternate payee’s name and last known mailing address, and