QDROs (Qualified Domestic Relations Orders)

While clients and attorneys are well versed in the options of sale and division of a residence, they are far less knowledgeable in dealing with pension plans and other retirement assets.

This is hardly surprising given the fact that the laws that affect these transactions are applied uniformly.

Division of a retirement plan is far more complex because each pension plan is permitted to have its own rules.

Plans differ in their benefits, forms of payment, dates for normal and early retirement, and payment options, and as to whether they provide early retirement subsidies.

Additionally, retirement plans have their own administrative procedures and jargon that can complicate and delay perfecting orders and obtaining benefits.

The most commonly used vehicles for obtaining a division of retirement benefits are DROs (Domestic Relations Orders), QDROs (Qualified Domestic Relations Orders), and COAPs (Court Orders Acceptable for Processing).

Drafting and perfecting such orders is often complicated by federal labor law, civil service and military provisions, and the complexities of sections of the Internal Revenue Code

Interestingly, orders can be obtained for the medical coverage of children (Qualified Medical Child Support Orders), and in some instances child support may be enforceable through an order to a retirement plan.

Obviously, being familiar with such procedures can help to avoid frustration, save time, and reduce costs.