A New York divorce attorney can explain that receiving a Qualified Domestic Relations Order, or a QDRO, can help protect your financial interests for years after your divorce. This is a specific court order that establishes your right or that of your child regarding certain qualified retirement plans. A QDRO may be issued when there is a defined contribution and benefits plan. A New York divorce attorney can explain the ins and outs of this decree.
Eligibility for a Qualified Domestic Relations Order
A QDRO ensures that the person retiring has funds that provide for self-support during retirement years. It is part of the federal ERISA law that establishes minimum standards for pension plans offered by private employers. QDROs do not apply to retirement plans set up by the government or churches. They also do not apply for special plans established for nonresident aliens. They do not cover annuities or specific deferred compensation plan.
The retirement plan administrator is responsible for determining whether a domestic relations order is actually a QDRO. The retirement plan should have established guidelines in place that allow an administrator to make this determination. Administrators provide participants and beneficiaries notice when there is a QDRO.
Purpose of a Qualified Domestic Relations Order
If a QDRO does apply, it is simply attached to a portion or all of a retiree’s retirement benefits. This allows the ex-spouse, child or other dependent to receive necessary support. A QDRO can provide provisions for child support, including the right to collect arrears from the retirement fund.