Qualified Domestic Relations Order - QDRO

DEFINITION of 'Qualified Domestic Relations Order - QDRO '

A type of court order typically found in a divorce agreement that recognizes that the ex-spouse is entitled to receive a predefined portion of the individual's retirement plan. In most cases, the qualified domestic relations order (QDRO) allots 50% of the value of the assets gained from the beginning of the marriage to the time of the divorce to the ex-spouse.

BREAKING DOWN 'Qualified Domestic Relations Order - QDRO '

When the distribution goes to the ex-spouse, the ex-spouse becomes responsible for any taxes incurred when the money is distributed. However, if the individual does not receive a QDRO and decides to distribute the retirement-plan assets to his or her ex-spouse, the individual will still be responsible for the taxes on the ex-spouse's portion of the money, even though he or she no longer possesses it.

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RELATED FAQS
  1. I just received a QDRO distribution from my ex-wife during our divorce. What is the ...

    During the divorce I acquired some debt and relocated with a lower income job. I’m 57 yrs. old. I currently have a ... Read Answer >>
  2. Is it possible to reverse an IRA? I received a QDRO and owe money to my ex-husband. ...

    Because a qualified domestic relations order (QDRO) is a court order, it cannot be reversed once it is received and processed ... Read Answer >>
  3. Am I eligible to file for my ex-husband's benefits before he files them himself?

    I am 63. I turned 62 before January 1st, 2016. I was previously married for over ten years. I am 1 1/2 years older than my ... Read Answer >>
  4. How are Social Security benefits calculated for divorced spouse?

    Find out how the Social Security retirement benefit for divorced spouses is calculated, including the impact of age and outside ... Read Answer >>
  5. Am I entitled to any of my ex-spouse's retirement plan benefits?

    Generally, former spouses are not entitled to benefits under a qualified plan, unless provisions were made for them to receive ... Read Answer >>
  6. Will I have to pay additional taxes on my income next year due to a QDRO Cash Payout?

    I am expecting a QDRO in which I plan to take a cash payout, then rollover the remaining amount into an IRA. I understand ... Read Answer >>
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