Things to Know When Calling a QDRO Attorney

If dividing retirement assets as a part of their divorce, client will likely need to reach out to an QDRO attorney (if their divorce attorney does not prepare these orders). Many clients are hesitant during this call because they are already in a dealing with many life changes. To add to the amount of change, they need to add a QDRO attorney to their divorce team of professionals. Understandably, the whole process can seem quite daunting.

Here are some tips to help that conversation go smoother and to prepare the client for that call:

1. The QDRO attorney will need to acquaint themselves to the case that the client and their divorce attorney know very well. The QDRO attorney will need some basic facts about the marriage and the parties to get oriented. Such information will likely include the date of marriage, ages of the parties, jurisdiction of the case, and the negotiation or litigation status. Some attorneys may want dates of birth and social security numbers for both parties. Many plan administrators will require this information before sharing any general plan information with the QDRO attorney. Other QDRO attorneys will ask for this information only if it is necessary.

2. The QDRO attorney will also need to know basic information about the type of division(s) that are needed. For example, is it an equalization of multiple 401k-type accounts or is there a pension? The best information here is to be able to tell the QDRO attorney the name of the plans that will be divided, and/or the financial institutions involved.

3. Relationships. The QDRO attorney will likely want to know how is the relationship between the counsel or the parties. Is everyone cooperating so there will be a free flow of information, or will it be like pulling teeth to get information from the other side?

4. Timeline. Sometimes in highly contested cases the Court will issue a deadline by which they want any QDROs to be submitted after the Judgment of Divorce is entered. A good QDRO attorney should be able to provide a time estimate in the initial phone call so that the counsel can advise the court early if an extension will be necessary.

With the above information, a QDRO attorney should be able to have a substantive conversation with a new client.

For the clients or counsel who have not dealt with many QDROs, here are some questions to ask the QDRO attorney which can help gauge the attorney’s experience, but also to set expectations for the process:

1. What does the whole process look like from signing the retainer to the final transfer of the funds?

2. What is the timeline or anticipated time frame for each step of the process?  

3. Are there any additional steps that must be taken to finalize the transfer that are not covered in the QDRO attorney’s retainer?

It is important to remember that although the QDRO attorney will be reaching out to the retirement plan administrator directly and obtaining information about the plan in general the plan will not provide account specific information without the participant’s express approval. For example, if the balance of the account as of a certain date is needed, and the participant is not willingly sharing that information, the plan will not share that information directly to the QDRO attorney. All rules of confidentiality and safe guarding of each participant’s account still apply to the plan administrator. This is why the QDRO attorney can usually get information about the plan and their QDRO procedures in general, but not specific information about the participant’s account.

If you or your client needs a QDRO, please give us a call at 240-396-4373 to discuss your case specifically and what you or your client needs.