QDRO Solutions

A qualified domestic relations order (QDRO) outlines how to divide retirement plan benefits to someone other than the plan holder (an alternate payee). Often, courts order QDROs as part of property division in divorce or child/spousal support decisions. Drafting and filing a legally compliant QDRO is complicated and varies depending on the retirement plan type, such as a 401(k) or state, federal, and military pension. At Pension Evaluators® & QDROs of Troyan Inc® & Associates Group, we skillfully take on all things related to QDROs, making us an invaluable resource for law firms, legal practitioners, and others navigating retirement benefits division.

It is important to note that any qualified legal service provider can draft, review, and file QDROs. Many have the misconception that attorneys can only handle these matters. This is not true. Read more about QDRO laws and our experience in the field on our “Can You File a QDRO Without an Attorney?” page.

What We Offer at Pension Evaluators®

Our team has prepared thousands of QDROs throughout decades of business. Today, we are proud to be one of the nation’s largest QDRO consulting firms. 

We can do the following and more for you:

• Prepare an order based on the specifics of a retirement plan 
• Review the order with a requesting party to ensure it accurately reflects the terms of the plan’s agreement
• Forward the order to the plan administrator to obtain pre-approval
• Remedy any inconsistencies with the order and the retirement plan agreement

The processes described in the final two bullet points are time-consuming yet important. Even slight discrepancies between orders and plans can disqualify them from pre-approval. This is why our team is meticulous and works closely with attorneys, clients, and plan administrators to ensure we check every necessary box. 

What Does a Drafted Order Include?

With our QDRO services, you can expect:

• A carefully drafted and reviewed order
• A personal information addendum that, for security purposes, is only ever submitted to the plan administrator 
• Step-by-step instructions for handling and filing the order
• Sample cover letters for pre-approval by the plan administrator, submission to the judge, and qualification 

Our affordable, high-quality services simplify drafting QDROs and navigating administrative processes. Plus, we handle everything virtually. This means no matter where you are in the United States, we can be a resource for you. 

Further Information About QDROs

What May an Alternate Payee Be Entitled To?

The alternate payee is the person to whom a QDRO assigns a portion of a retirement plan’s benefits. 

An alternate payee may be entitled to the following:

• A part of the participant’s pension benefit, starting at the participant’s retirement date
• A life annuity and/or a death benefit to a beneficiary
• A portion of a participant’s survivorship rights if they die before reaching retirement

Separate vs. Shared Interest 

Under the Employee Retirement Income Security Act (ERISA), retirement benefits can be divided into separate and shared interests:

Separate Interest

With separate interest, the alternate payee essentially becomes a plan participant. They can obtain retirement benefits at any point after the plan participant qualifies for their benefits. Additionally, the alternate payee can assign a beneficiary. The alternate payee's decisions do not affect the original plan participant’s portion of the benefit.

Shared Interest

Shared interest distribution differs significantly from separate interest. The alternate payee cannot designate beneficiaries and must wait until the plan participant retires before receiving benefits. Plus, the alternate payee can only receive benefits during the plan participant’s lifetime unless a QDRO guarantees survivorship benefits. 

Can You Divide Military Retirement Benefits?

The Uniformed Services Former Spouse Protection Act (USFSPA) allows spouses of military members to receive portions of military retirement benefits upon divorce. While the USFSPA has been challenged many times, the provisions still stand. Military retirement pay can be classified as marital property and divided as such.