Plan Loans and QDROs: Whose Debt is It?

When times get tough, as they often do during divorce, many people turn to their retirement accounts for a bridge loan to get them past temporary financial troubles. The problem, of course,is that a retirement account is considered the joint property of both spouses — and if one person borrows against that account, they are […]

Do You Always Need a QDRO?

When you are going through a divorce, one of the major considerations is how to divide assets. This is often an incredibly complex and difficult process, which can be made even more complex when there is a retirement account involved. Retirement accounts, such as 401(k)s, can be subject to a Qualified Domestic Relations Order (QDRO), […]

When is a QDRO Required?

When is a QDRO required? The answer is, almost always. In nearly every divorce, at least one of the parties has a retirement account. This retirement account is likely marital property, as it was contributed to during the marriage. To split these retirement accounts, a Qualified Domestic Relations Order (QDRO) is needed. A QDRO is […]

What is The Purpose of a QDRO?

In a divorce or legal separation, a Qualified Domestic Relations Order (QDRO) is a legal document that says how retirement benefits will be split. Not only does it say who will get the benefits, but it also says how they will be split. By dividing retirement benefits via QDRO, the parties ensure that the calculations […]

What is a QDRO and How Does it Work?

A Qualified Domestic Relations Order, commonly referred to as a QDRO, is a court-order that directs a retirement plan to divide retirement accounts, typically along the terms of the divorcing parties’ agreement. If there is no agreement – or the agreement is unclear – the QDRO will work off your state’s default law to decide […]