If you are divorcing here in Florida after many years of marriage, you will likely need to have your attorney draft a document known as a qualified domestic relations order, known by the acronym QDRO. These documents deal with the distribution of retirement benefits, but are documents that have to be filed in addition to the regular agreement regarding the division of the marital property. Without them, money can be lost.
So, what exactly is a QDRO, and why must you have one?
Qualified domestic relations orders defined
These legal documents are formal agreements filed with the court and then tendered to the retirement plan administrator in order for the former spouse of the plan member to receive any portion of the worker’s retirement assets. Typically, these documents deal with ERISA-based retirement pensions like 401(k)s but exclude IRAs. They also permit division of the funds without subjecting them to early-withdrawal penalties.
Won’t my property settlement judgment do that?
No. It falls short of the requirements of a QDRO. These documents only provide for spouses, former spouses, children or other dependents of a qualified plan participant. As such, they must have specific details included, e.g., addresses and contact information for the former spouses.
Does every Florida divorce require a QDRO?
Every Florida divorce that deals with property settlements with retirement benefits involved will need one. The exception might be a newly married couple with few (or any) retirement benefits who seek divorce. Then it might not be necessary to complete a QDRO. But any high-asset divorce will require one to be drafted, filed and signed by the court.