QDRO logistics

[Gary]

This thread is also on QDRO board but that board is very quiet.

I prepared a 2 page QDRO. It is essentially a basic word document that provides all the necessary information that s/b contained in a QDRO.

I was hired by the two spouses. That is, they agreed to use me.

My question is: Is t his sufficient? That is, does the QDRO have to be in some fancy legal format, like that of a lawsuit, or is this simple presentation allowed?

My understanding is that the draft QDRO, if agreed by the two divorcing spouses is then presented to a judge who approves the division of assets as a domestic relations order. Of course the plan administrator has to determine that it satisfies the rules to be a qualified DRO.

Then once that is all complete the two spouses sign off on the QDRO and it can be executed.

Is that a correct uunderstanding?

Thanks.

[J Simmons]

If it contains all that it should (and nothing it shouldn't), is signed by the divorce judge and then presented to the plan administrator, that should do. However, the trick is in the details of making sure that the order has all that is required by the statutes, and nothing prohibited thereby, while accomplishing the split agreed upon and not 'leaving anything on the table' to be a windfall to the plan should certain scenarios unfold.

[AndyH]

How would you know that your draft has correctly captured the informed wishes of the parties? Have you discussed all the options with them, shared interest, separate interest, death pre and post retirement, payment start dates, etc? I would expect that some would have concerns about the practice of law issue.

There is a very good DOL publication online that states clearly all the requirements, covers many if not all options, and provides model language.

[Effen]

I prepared a 2 page QDRO

- Cool! I didn't know you were an EA and an attorney. Hope your E/O covers your legal work as well.

[Gary]

Thanks.

Yes, I do have notice 97-11 and the DOL publication "The Division of Pensions Through QDROs" and will be reading them more thoroughly, but I didn't notice anything addressing the "format" of the QDRO and that was what I was inquiring about.

[Gary]

Revisiting the QDRO preparation.

I prepared the word document that would be presented to the divorce attorneys and spouses and then approved and forwarded to the divorce judge.

A tax attorney at my firm said that a word document is not an acceptable format to provide to the judge and that it must be stated as a formal ORDER to the judge. All that legalese, etc. The attorney than proceeded to draft an ORDER and disregarded my word document.

Any comments on the action by this attorney?

Thanks.

[J Simmons]

Some courts would actually prefer to receive a proposed order in a word processor format, so that the judge may change it as he/she sees fit before perhaps signing it.

A document must be an order, decree or judgment to be a QDRO (if all the other requirements are met). So I'm not quite sure why the all caps emphasis "ORDER" in distinction from a QDRO. Most courts require that documents filed with the court, including QDROs and other orders specify atop the first page the court, caption, case number and title of the document. This is for identification purposes.

After the spot for the judge to sign the proposed order, most proposed orders have a clerk's certificate of service, indicating how the order (once signed) is provided to each attorney and unrepresented party. That might be what you are referring to as a formal ORDER. If so, you should have the document provided in word processor format meet all those format requirements that the divorce demands/requests.