QDRO Checklist: 14 Questions to Answer

QDRO Checklist: 14 Questions to Answer

Frumkes & Vertz on Divorce Taxation §13.12

Qualified Domestic Relations Order (QDRO) Checklist

During divorce, a QDRO, or Qualified Domestic Relations Order, is a method of dividing a retirement plan – which might be one of the most valuable assets in your marital estate. Use this QDRO Checklist to help avoid making a costly mistake when dividing retirement assets in your divorce.

  1. Does the court-issued order clearly appear to relate to the allowance of child support, alimony payments, or marital property rights to a spouse, former spouse, child or other dependent of a participant?
  2. Does the order clearly appear to be made according to a state domestic relations law?
  3. Does the order clearly appear to create or recognize the existence of each alternate payee’s right to, or give to each alternate payee the right to, receive all or part of a participant’s benefits?
  4. Does the order clearly state the name and last known mailing address (if any) of the participant?
  5. Does the order clearly state the name and mailing address of each alternate payee covered by the order?
  6. Has any alternate payee chosen a representative for the receipt of copies of notices?
  7. Does the order clearly state the amount or percentage of the total of the participant’s benefits to be paid to each alternate payee or the method of how this amount or percentage is to be determined?
  8. Does the order state the time when this amount or percentage will be paid to each alternate payee?
  9. Does the order state the form of payment for each alternate payee?
  10. Does the order state that it applies to the Plan by using the exact name of the Plan?
  11. Is it clear that the times and forms of payments are allowed under the Plan?
  12. Is it clear that the amount described in item 7 is equal to or less than the total benefits of the Participant?
  13. Is it clear that the percentage described in item 7 is 100 percent or less?
  14. Is it clear that the order does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order?

 

My book, Frumkes & Vertz on Divorce Taxation, contains extensive information and tips for preparing qualified domestic relations order.  Buy it today!