When Can I File My QDRO?

In the best case scenario, the parties have negotiated their Agreement and filed for an uncontested divorce. The QDROs were attached as exhibits to the Agreement, and are filed with the Court in advance of the uncontested divorce hearing. When this happens, the Court will process the QDROs along with the Judgment of Divorce, so everything is generally entered on the same day.

What happens if that is not the case?

If the parties do not get the QDROs prepared before the uncontested divorce hearing, they should be completed as soon as possible thereafter, especially if a person is awarded survivor benefits. In cases where substantial time has passed, it is possible that the account holder has spent the money that should have been transferred, or died and had the funds disbursed to a different beneficiary or through the estate. In either scenario it is difficult or impossible to recover the funds for the former spouse.

Similarly, if the case goes to trial, the parties can have QDROs drafted and submitted during the trial in the event the Court agrees with their proposed division of the assets. Alternatively, if the QDROs are not submitted during the trial, they should be completed as soon as possible following the issuance of the Judgment of Divorce for the reasons listed above.

While the reasons listed here are more to protect the spouse that is to receive the funds, it is also a hassle being the party that owns the account to be divided. That party should safeguard the funds that are supposed to be transferred, which could be difficult if that party comes into a financial hardship.

Whenever possible, the parties should agree on when the process to draft the QDRO will start, and who is responsible for seeing it through to completion. This way, the expectations are clear for both parties.

At any point in your case, if you have a question about timing, or steps to take regarding the division of retirement assets, please contact our office at 240-396-4373.