When a couple divorces in Massachusetts, dividing retirement accounts can be one of the most complex and overlooked parts of the process. A Qualified Domestic Relations Order (QDRO) is a legal document that ensures retirement assets are divided properly and in compliance with federal law. Without it, one spouse could lose their rightful share of a pension, 401(k), or other employer-sponsored retirement plan.

What Does a QDRO Do?
A QDRO is a court order that allows a retirement plan administrator to divide a retirement account between divorcing spouses without triggering early withdrawal penalties or taxes. It recognizes one spouse’s legal right to receive a portion of the other spouse’s qualified retirement benefits. The order specifies the exact percentage or dollar amount to be distributed and how it should be handled, whether it is rolled into another retirement account or paid directly.

What Must a QDRO Include?
For a QDRO to be valid, it must include specific information required by federal law under the Employee Retirement Income Security Act (ERISA). This includes:

• The full name and last known address of both the plan participant and the alternate payee (the spouse receiving a portion of the benefits)
• The name of the retirement plan covered by the order
• The exact amount or percentage to be paid to the alternate payee
• The number of payments or the period covered by the order
  It’s also important that the QDRO does not assign benefits not allowed under the plan or conflict with other existing QDROs for the same participant. Each retirement plan has its own requirements, so the order must be drafted carefully and approved by the plan administrator.

Why Is a QDRO Important in a Divorce?
Without a QDRO, the division of retirement assets may not be enforceable, even if agreed upon in a divorce settlement. This could result in one spouse losing their share of the funds if the plan participant retires, withdraws the funds, or passes away. A properly executed QDRO:

• Protects both spouses’ rights to retirement benefits
• Avoids early withdrawal penalties and unnecessary taxes
• Ensures compliance with both federal and state law
• Provides financial security for the non-participating spouse after divorce

How Do You Get a QDRO in Massachusetts?
The process typically begins after the divorce agreement or judgment includes a provision for dividing retirement assets. One party’s attorney or a QDRO specialist will draft the order based on the plan’s requirements. The draft is sent to the plan administrator for pre-approval, and once approved, it is submitted to the Massachusetts Probate and Family Court for the judge’s signature. After the court issues the signed QDRO, it is returned to the plan administrator for final implementation.

A QDRO plays a critical role in ensuring that both spouses receive the retirement benefits they are entitled to following a divorce. Because each plan and case is unique, it is essential to work with an experienced Massachusetts family law attorney who understands how to draft and file a QDRO correctly. Contact our office today to learn how we can help protect your rights and secure your financial future.