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. 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 >>
  3. Am I eligible to file for my ex-husband's benefits before he files himself?

    I am 63, I turned 62 before Jan 1. 2016, and was previously married for over ten years. I am 1 1/2 years older than my ex-husband ... Read Answer >>
  4. Can I receive my ex-husband’s social security?

    I am 44 recently divorced and do not plan on remarrying. ... Read Answer >>
  5. Why are high net worth divorces considered more challenging than other divorce cases?

    Learn about some of the complexities and common pitfalls associated with divorce proceedings involving high-net-worth individuals. 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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