Q. April K. of Massachusetts wants to know: "Why Might I Need a QDRO, or DRO?"
A. Spencer, from the QDRO Department of Pension Evaluators & QDROS Of Troyan, Inc Associates Group replies: "The most common reason for needing a QDRO or DRO is that the parties in a divorce do not have sufficient assets (e.g. cash, retirement accounts, home equity) to permit the plan participant to keep his/her entire plan benefit in exchange for the non-participant spouse being awarded another asset. A second common reason is that the parties may not agree on the present value of the pension to be offset against other assets (see "What is a Pension Evaluation" above). A third common reason is to provide spousal support and/or child support payments from a retirement plan to an alternate payee (spouse, former spouse and/or dependent of the participant) by monthly pension payments or a lump sum payment from a retirement account. A fourth common reason is to pay off marital debt with retirement accounts at the time of divorce or legal separation."
Spencer Olsen
Senior QDRO Analyst