QDROs in Michigan for Divorce
What a Qualified Domestic Relations Order does
A QDRO is a court order that instructs a retirement plan to pay a portion of one spouse’s benefits to the other due to divorce. Most employer plans, including 401 k and 403 b accounts and many pensions, require a QDRO to divide benefits without tax penalties. IRAs are different and can often be divided by a direct transfer incident to divorce. The right order protects your share of retirement benefits and prevents delays.
Dividing 401 k, pensions, and public plans
Retirement earned during the marriage is marital property, whether in a private 401 k, a school 403 b, or a municipal pension. Some government and military plans use specialized orders, but the goal is the same: carry out the property division in your judgment accurately and on schedule. Most QDRO’s and related orders are prepared by attorneys, certified divorce financial planners or other qualified drafters, located in the Southeast Michigan area who are experienced with the laws concerning division of pension benefits and the plan administrators for the various pension plans.
Drafting, pre approval, and implementation
Although Paul S. Kowal, P.C. does not draft QDROs, we are experience in reviewing the orders to insure that the orders match the agreements for division of the plans set in your divorce judgment. We can also assist you in getting the Orders signed by all parties, approved by the Court and submitted to the Plan Administrator for qualification. If your divorce is already finished but the QDRO was never done, we help you post judgment to get the QDRO drafted and approved so your benefits are protected going forward.
Common Scenarios We Handle
Percentages, account dates, and gains or losses
A QDRO can award a percentage or a set dollar amount as of a specific date, with gains and losses until distribution. For pensions, formulas can assign the marital portion once payments begin. We also address loans, survivor benefits, and what happens if the employee retires early. Clear terms now prevent disputes years later.
QDRO FAQs
What does a QDRO do?
It authorizes the plan to pay the former spouse directly, moving funds or setting future pension payments according to the divorce judgment.
Can we divide a 401(k) without a QDRO?
Not if it is an ERISA plan. A QDRO is required. IRAs can be handled by a transfer incident to divorce with the right decree language.
How long does a QDRO take?
Plan review and court processing can take weeks to a few months. Starting early avoids delays when accounts change or loans are taken.
What if we never finished the QDRO after divorce?
You can still obtain one. We review your judgment and move the order through the plan so your share is implemented.
Ensure Your Fair Share of Retirement
Retirement accounts are often the largest marital assets. Paul S. Kowal, P.C. can prepare the orders you need to receive your portion without tax surprises. Call (586) 731-3012 for guidance on QDROs in Macomb County.