What is a qualified domestic relations order (QDRO)?

During any divorce, there are assets that must be divided and decisions that must be made. With divorce mediation at Peaceable Divorce, it is our priority to guide all parties through this process in the most efficient, cost-friendly way. 

One factor that might become necessary during divorce mediation is a qualified domestic relations order (QDRO). If a couple who is dividing assets also wants to divide 401(k) plans and pension plans, it must be done through a qualified domestic relations order. 

QDROs must be done by an attorney in coordination with a plan administrator — who determines the value of these assets — and there can be significant fees associated with this process. Additionally, it’s important to remember that this retirement money cannot be taken out without penalty until age 59 ½, and pension plans must also wait until the employee has retired.  

In order to avoid attorney fees for this service, couples can divide assets in an equitable way without tapping into their 401(k)s and/or pension plans. However, if this division of assets becomes necessary, divorce mediation can provide financial relief, as well as support and guidance during the process. 

If you’re interested in divorce mediation or have more questions, contact Peaceable Divorce. 

Learn more about divorce mediation here!

Serving Chicago and surrounding areas.