Qualified Domestic Relations Order | Meaning

What is a Qualified Domestic Relations Order?

A Qualified Domestic Relations Order (QDRO) can be defined to be a judgment or a decree or an order that is needed for a retirement plan in order to pay child support and or alimony and or marital property rights that are often handed to the spouse or in some cases to the ex-spouse, even to a child or sometimes even to other participants who are dependent in one way or another.

 

The Qualified Domestic Relations Order (QDRO) must have the following information and be specified properly so that the spreading of misinformation could be avoided as that is one of the most common problems faced.

 

  •       The Qualified Domestic Relations Order (QDRO) is required to most importantly have the name of the participant as well as the name of all payees that are stand-ins as alternate payees. They are also required to put in the alternate payee’s mail address. It can be the last working mail address as well.
  •       The Qualified Domestic Relations Order (QDRO) is required to mention the amount or in certain cases the percentage that mentions the benefits of the participant which has to be paid by each of the alternate payees.

 

The Qualified Domestic Relations Order (QDRO) is said to have a lot of benefits but everything has two sides to it. Just like that, although the Qualified Domestic Relations Order or QDRO has a lot of good sides to it, it also has a few bad sides to it. The most prominent bad side of it is that the Qualified Domestic Relations Order or QDRO may not end up bearing an amount or a benefit of any sort that is not found to be available under the said plan.