For example, the benefit could be frozen either upon receipt of a copy of the executed divorce decree or the receipt of a draft domestic relations order
98-397, resolved the disparity between ERISA and state law by allowing qualified plans subject to ERISA to segregate assets for the benefit of one or more "alternate payees" through a qualified domestic relations order
(QDRO), a domestic relations order
that meets all the requirements of ERISA and IRC Sec.
Paragraph (1) shall apply to the creation, assignment, or recognition of a right to any benefit payable with respect to a participant pursuant to a domestic relations order
, except that paragraph (1) shall not apply if the order is determined to be a qualified domestic relations order
The administrator of the pension plan that provides the benefits affected by an order is initially responsible for determining whether a domestic relations order
is a QDRO.
Under the QDRO exception, a domestic relations order
may assign some or all of a participant's pension benefits to a spouse, former spouse, child, or other dependent to satisfy family support or marital property obligations, but only if the order is a "qualified domestic relations order
The 1984 amendments created a limited exception to the anti-alienation provisions for a state domestic relations order
(allowing alienation or assignment of pension benefits) if it is a "qualified domestic relations order
Alternate Payee--Any spouse, former spouse, child, or "other dependent" of a participant who is recognized by a Domestic Relations Order
as having a right to receive all, or a portion of the benefits payable under a plan with respect to such participant.
A QDRO is a specific type of domestic relations order
that creates an alternate payee's right to receive all or part of the benefits payable with respect to a participant under a plan, clearly specifies certain facts, and does not alter the amount of the benefits under the plan.
The former spouse's argument that she was an alternative payee eligible to be treated as the distributee under a qualified domestic relations order
(QDRO) was rejected by the court.
The court will usually issue a domestic relations order
that directs the payment of some portion of the benefits to the retiree's spouse or dependents.
Poorly drafted property division settlements and failure to divide qualified plans properly using a Qualified Domestic Relations Order
(QDRO) seriously can affect the retirement of one or both spouses.
While all this may sound as if you have no way to put out the fire, a Qualified Domestic Relations Order
(QDRO) can resolve disputes quickly.