What is a QDRO?

A Qualified Domestic Relations Order (QDRO) is a court order that gives a spouse the right to receive a portion of the other spouse's employer-sponsored retirement benefits. QDROs are required for most employer-sponsored plans like 401(k)s, pensions, and 403(b)s, but not for IRAs.

The Coverture Formula

New York courts typically use the "coverture formula" to determine the marital portion of retirement accounts:

• Marital Portion = (Years of marriage during employment) ÷ (Total years of employment)
• Only the marital portion is subject to division between spouses
• Pre-marital contributions typically remain separate property

Types of Retirement Accounts

Key QDRO Considerations

• Survivor Benefits: Will the alternate payee (spouse) be entitled to survivor benefits?
• Early Retirement: How are early retirement distributions handled?
• Loans: What happens to outstanding loans against the account?
• Investment Direction: Who controls investment decisions for the divided portion?
• Distribution Timing: When can the alternate payee begin receiving distributions?

Professional QDRO Drafting

QDROs are complex legal documents that must comply with both federal ERISA requirements and the specific terms of each retirement plan. Even small errors can result in significant financial losses or delays. Our experienced attorneys can:

• Draft QDROs that comply with plan requirements
• Maximize protection for both parties
• Handle plan administrator communications
• Ensure proper tax treatment of distributions
• Address survivor benefits and early retirement scenarios