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. 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 >>
  2. 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 >>
  3. I will be receiving monies from a QDRO executed pursuant to my divorce. I would like ...

    There are several issues to consider: The early distribution penalty - Assets distributed from a qualified plan in accordance ... Read Answer >>
  4. 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 >>
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    Learn about the impact divorce has on your Social Security retirement benefits and the possibility of collecting spousal ... Read Answer >>
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