What is ‘Qualified Domestic Relations Order – QDRO ‘
A type of court order typically found in a divorce agreement that recognizes that the ex-spouse is entitled to receive a predefined portion of the individual’s retirement plan. In most cases, the qualified domestic relations order (QDRO) allots 50% of the value of the assets gained from the beginning of the marriage to the time of the divorce to the ex-spouse.
Explaining ‘Qualified Domestic Relations Order – QDRO ‘
When the distribution goes to the ex-spouse, the ex-spouse becomes responsible for any taxes incurred when the money is distributed. However, if the individual does not receive a QDRO and decides to distribute the retirement-plan assets to his or her ex-spouse, the individual will still be responsible for the taxes on the ex-spouse’s portion of the money, even though he or she no longer possesses it.
Further Reading
- Qualified Domestic Relations Orders: A Statutory Analysis – heinonline.org [PDF]
- A Primer on the History and Proper Drafting of Qualified Domestic-Relations Orders – heinonline.org [PDF]
- Small Business Tax Solutions – www.questia.com [PDF]
- QDROs Demand the Attention of CPAs: Well-Crafted Orders Can Ensure the Equitable Division of Retirement Assets in a Divorce – www.questia.com [PDF]
- Whose pension is it anyway? – search.proquest.com [PDF]
- Divorce Settlement Issues – www.questia.com [PDF]
- Evaluating Valuation Texts – heinonline.org [PDF]
- No Exclusion for Former Spouse from Assignment of Disability Income – www.questia.com [PDF]
