QDRO: What It Is & How It Impacts Retirement Assets
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QUALIFIED DOMESTIC RELATIONS ORDER, QDRO

Qualified Domestic Relations Order

A Qualified Domestic Relations Order (QDRO) is a legal record that establishes the right of an alternate payee—typically a spouse, former spouse, child, or dependent—to receive a portion of the retirement plan assets of an employee or plan participant. QDROs are often utilized in divorce proceedings to allocate and distribute retirement benefits equitably between the plan participant and their former spouse or dependents.

A QDRO must include detailed information about the participant and the alternate payee, including their names and mailing addresses. The amount or percentage of retirement benefits to be paid to the alternate payee must be specified in the order. Provisions of the QDRO must comply with legal standards and regulations, ensuring that it is enforceable and effective.