The role of attorneys and financial professionals in the QDRO process.

A Qualified Domestic Relations Order (QDRO) is a legal document that plays a critical role in dividing retirement assets during a divorce or separation. The QDRO process can be complicated and involves both legal and financial considerations. As such, the involvement of both attorneys and financial professionals is essential to ensure that the QDRO is properly drafted and implemented. In this article, we will explore the importance of attorneys and financial professionals in the QDRO process.

Attorneys in the QDRO Process

The role of attorneys in the QDRO process is crucial for ensuring that the division of retirement benefits in a divorce or separation is fair and legally enforceable. Attorneys can help their clients with the following steps in the QDRO process:

•  Gathering information about the retirement plans involved, such as the plan name, type, administrator, balance, vesting status, and distribution options. Attorneys can request this information from the plan administrator or the other party.
•  Drafting the QDRO according to the terms of the divorce judgment or separation agreement, as well as the plan’s rules and procedures. Attorneys can use their expertise and experience to draft a QDRO that reflects the parties’ intentions and protects their rights and interests. It may be necessary to have an attorney prepare the QDRO in high-conflict situations or where the division is especially complicated, such as where plan records do not exist. 
•  Reviewing the draft QDRO with the other party or their attorney, and resolving any disputes or issues that may arise. Attorneys can negotiate and communicate on behalf of their clients to reach an agreement on the QDRO language and terms.
•  Submitting the draft QDRO to the plan administrator for preapproval, if possible. Attorneys can ensure that the QDRO meets the plan’s requirements and avoid any delays or rejections in the final approval process.
•  Obtaining signatures from the parties and the judge on the QDRO, and filing it with the court. Attorneys can handle the paperwork and logistics of getting the QDRO signed and entered as a court order.
•  Sending a copy of the signed QDRO to the plan administrator for final approval and implementation. Attorneys can follow up with the plan administrator and monitor the status of the QDRO until it is accepted and executed by the plan.

Attorneys play an important role in the QDRO process by providing legal advice, guidance, and representation to their clients. They can help their clients navigate the complex and often confusing process of dividing retirement benefits in a divorce or separation, and ensure that their clients receive their fair share of the benefits.

However, many people choose to proceed without the help of an attorney, especially for straightforward or simple QDROs. We’ve built versatile drafting software, with proven QDRO language, that helps people prepare these orders on their own. For cooperative parties that don’t have complex division issues, our solution can save you thousands of dollars. 

Financial Professionals in the QDRO Process

Financial professionals, such as certified divorce financial analysts (CDFAs), can also play an important role in the QDRO process. They can help clients understand the financial implications of dividing retirement assets, such as tax implications and longterm financial planning considerations.

Financial professionals can assist in the QDRO process by providing the following services:

•  Gathering information about the retirement plans involved, such as the plan name, type, administrator, benefits, vesting, valuation date, and distribution options.
•  Analyzing the retirement plan benefits and determining the present value of the marital portion of the assets.
•  Discussing with the other party or their attorney to reach an agreement on how to divide the retirement plan assets equitably and fairly.

Financial professionals can help with advice on rollovers and cashout options. They also serve an important role in complex valuation situations, where the retirement plan lacks records to run older calculations or where parties wish to trade assets or buy out the other’s interest in a pension.

Working Together for a Successful QDRO Process

When it comes to the QDRO process, you do not always need to involve attorneys and financial professionals. Attorneys can provide legal expertise and guidance, while financial professionals can provide valuable financial insights and analysis. By working together, they can ensure that the QDRO is properly drafted and implemented, and that their clients receive their fair share of retirement assets. However, hiring a team of experts to draft a QDRO can get very expensive – and for clear-cut divisions, such as a 50% split, many parties may wish to save on expert fees and prepare an order themselves. With our versatile software, you can draft an order for over 500,000 retirement plans using a variety of division methods and tested QDRO language. Plus, we allow you to preview your document before you pay and provide a money-back guarantee if you are unsatisfied with your draft order – get started today.