Tutorial video in a series of DIY divorce videos that explains how to draft a QDRO to slit a 401(k) or pension during a divorce.

A QDRO is a special type of court order that is essentially a set of instructions telling a retirement plan administrator how to divide a particular retirement asset such as a 401(k) or a pension.

One option is to hire an expert to draft the QDRO. The experts that are in the business of drafting QDROs are typically accountants or actuaries, although some are lawyers. You can Google “QDRO drafting” and find an expert to draft a QDRO for you. You can expect to pay somewhere in the neighborhood of $500 to $600 per QDRO.

Another approach is to draft your own QDRO using a model and instructions provided by the retirement plan administrator or custodian.

Not all retirement plan administrators provide model QDROs and instructions, but many of them do. Call the administrator for each of your retirement plans and ask if they can mail or email you a model QDRO and a set of instructions. When you receive the model, follow the instructions and prepare your own QDRO.

After your QDRO has been drafted, the next step is for you and your spouse to date and sign the QDRO. Some courts will require that your signatures on the QDRO be notarized.

Take your original QDRO and a copy to the court clerk, together with a self-addressed stamped envelope. The court clerk will give the QDRO to a judge to sign. After the judge signs the QDRO, the court clerk will mail you a filed-endorsed copy of the QDRO.

Many retirement plan administrators will accept a filed-endorsed copy of the QDRO. However, some plan administrators, particularly when you are dealing with retirement benefits through government entities, will insist on a certified copy of the QDRO.

After you get the certified copy of the QDRO back from the court, make a copy for yourself and a copy for your spouse. Then, take the certified copy and mail it to the plan administrator. When you mail the QDRO to the plan administrator, include a cover letter. Your cover letter will ask the administrator to review the QDRO and confirm that the QDRO is acceptable to the administrator. Your cover letter must also provide the plan administrator with your date of birth, your social security number, your spouse’s date of birth, and your spouse’s social security number. The address of the plan administrator is usually set forth in the QDRO.

The plan administrator will take some time to review the QDRO and let you know if the QDRO is acceptable. Some plan administrators will get back to you in a few weeks. Others will take a few months. Some government agencies can take a year or longer.

Some retirement plan administrators charge a fee to review a QDRO. Many administrators do not charge any fee to review a QDRO. If a review fee is going to be charged, the administrator will take the fee out of the retirement account.

Some administrators charge hefty review fees. You can pay more for a review fee than the amount you paid to have a professional draft the QDRO. Some administrators won’t charge a review fee or will charge a reduced review fee if you use their model QDRO. Fidelity tends to charge very hefty review fees if they have a model QDRO on their website and you don’t use it, but instead hire a professional to draft a QDRO that differs from the Fidelity model….(read more)

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Title: How to Draft a QDRO (Qualified Domestic Relations Order) – Video #16 (2021)

Introduction:
Divorce proceedings can be complex, requiring individuals to navigate a variety of legal documents and agreements. One critical document in the realm of divorce settlements is the Qualified Domestic Relations Order (QDRO). This article will guide you on how to draft a QDRO effectively, referencing Video #16 (2021), to ensure a smooth division of retirement assets between spouses.

1. Understanding the Purpose of a QDRO:
A QDRO is a legal order that outlines how retirement benefits will be divided between divorcing parties. It allows for the separation of retirement plans while maintaining the tax-deferred status of the assets. Consequently, both parties can receive their fair share of the accrued retirement benefits without incurring unnecessary penalties.

2. Familiarize Yourself with Applicable Laws and Regulations:
Begin by educating yourself on the specific state laws and plan regulations governing the division of retirement benefits. While core principles remain consistent across jurisdictions, there may be important nuances. Research and review state laws and speak with a qualified attorney to ensure you are well-versed in the requirements unique to your situation.

3. Gather Essential Information:
To draft a comprehensive QDRO, compile necessary data such as the full names and addresses of both parties, the employer’s information, retirement plan details, and any relevant account numbers. Obtain copies of the retirement plan summaries, benefit statements, or any document disclosing the plan’s terms and conditions.

4. Consult with a Qualified Professional:
Given the complex and technical nature of QDROs, it is advisable to consult with an attorney, preferably one well-versed in family law and retirement asset division. They will provide valuable guidance, ensuring that the QDRO adheres to the specific requirements and language set forth by the plan administrator.

5. Compose the QDRO:
In Video #16 (2021), the instructor will guide you through the drafting process of a QDRO in detail. Pay close attention to the step-by-step instructions provided, as these will help ensure accuracy and compliance. Utilize the instructor’s template or other legal resources to structure the QDRO effectively.

6. Review and Revise:
After drafting the QDRO, meticulously review it for any errors or omissions. Attention to detail is crucial, as even minor oversights can cause unnecessary complications or delays. Ensure that the QDRO stipulates the specific division of the retirement benefits, including percentages or dollar amounts.

7. Seek Approvals:
Send the drafted QDRO to both parties’ attorneys for review. They will cross-check the document’s accuracy and make any necessary revisions. Once approved, the QDRO should be submitted to the court for finalization and the judge’s signature.

8. Submit the Approved QDRO to the Plan Administrator:
After obtaining the judge’s signature, promptly forward the approved QDRO to the appropriate retirement plan administrator. Consider sending it via certified mail to ensure its safe and documented delivery. The plan administrator will review the document for compliance and process the division of assets accordingly.

Conclusion:
While the process of drafting a QDRO may seem daunting, following the guidance provided in Video #16 (2021) can streamline the procedure. Remember, enlisting the expertise of a knowledgeable attorney is crucial to ensure accuracy and compliance. By creating a meticulous and comprehensive QDRO, you can effectively divide retirement assets and navigate the complexities of divorce proceedings.