Even though retirement plans can be one of the most beneficial things about a marriage, many spouses forget about or overlook retirement plans during the process of divorce. Spouses are especially prone to overlooking retirement plans when they’re going through the divorce process years or even decades before retirement. If you’re currently in the process of divorce, here is some information about why you should not overlook the importance of a QDRO.
A qualified domestic relations order refers to a special court order that provides an individual with the right to a portion of their former spouse’s retirement benefits. In general, these retirement benefits are earned by the former spouse by participating in a retirement plan sponsored by an employer. Usually, QDROs are established during the divorce process. However, in some cases, QDROs are established years after the divorce.