1. People & Relationships

What Can QDRO Be Used For?

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Question: What Can QDRO Be Used For?
Answer:

QDRO or Qualified Domestic Relations Order 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:

Certain situations have to be met for the QDRO to be valid.
  • QDROs are subject to ERISA (Employee Retirement Income Security Act) requirements.
  • The QDRO must be issued by a state authority, usually a state court through a judgment, court order or divorce decree, which addresses a marital property settlement.

  • The validity of the QDRO must follow certain guidelines set up by the pension plan 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.

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