Glossary Term

QDRO

Qualified Domestic Relations Order

A QDRO is a legal order, separate from a divorce decree, that instructs a retirement plan administrator on how to divide a 401(k) or pension between divorcing spouses.

Without an approved QDRO, an awarded share of the account is never actually transferred — the divorce decree alone does not move any money out of an employer-sponsored retirement plan.

In Plain English

Your divorce papers might say you get half the 401(k), but the plan administrator won't actually move a dollar until a separate, specific legal order — the QDRO — is drafted and approved.

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What needs a QDRO, what doesn't, and the mistakes that cost people their share.

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