Legal Definitions - Qualified Domestic Relations Order (QDRO)

A Qualified Domestic Relations Order (QDRO) is a legal document that allows for the division of retirement benefits between divorcing spouses. It is created by a state court and must meet certain requirements under the Employee Retirement Income Security Act (ERISA) to be considered "qualified."

For example, if a couple gets divorced and one spouse has a pension plan, the other spouse may be entitled to a portion of those benefits. A QDRO would be necessary to ensure that the non-employee spouse receives their share of the benefits.

It's important to note that a domestic relations order only becomes a QDRO when it meets the specific requirements set forth by ERISA. This includes creating or recognizing an alternate payee's right to receive all or part of the participant's benefits, and ensuring that the alternate payee is limited to the participant's spouse, former spouse, child, or other dependent.

Overall, a QDRO is an important tool for ensuring that both parties receive their fair share of retirement benefits in the event of a divorce.