Domesticated Judgment, then QDRO

[Oh so SIMPLE]

H & W obtain divorce decree in State X, awarding W part of H's benefits in Plan in State Y.

Rather than obtain QDRO from State X's divorce court, W has the State X divorce decree 'domesticated' in State Y, where the Plan and Plan Administrator are. Pursuant to the divorce decree, the State Y judge then enters the QDRO.

Is this acceptable? Should the Plan Administrator insist on a QDRO be issued by the State X divorce judge?

[Ron Snyder]

An order from a court in the state "where the Plan and Plan Administrator are" should be recognized by the Administrator and the Plan so long as it meets the requirements for a QDRO.

Acceptable? Why wouldn't it be?

What does "insist" mean? Does any Plan Administrator really want to hire legal counsel to go to court and ask the "state Y" judge who just issued the QDRO to countermand his own order and rule that the H&W should have had the QDRO granted in the original state first?

Get real.

[QDROphile]

"Get real."

I have great sympathy for those who are real enough worry too much about compliance issues. A plan administrator does not have to look behind a domestic relations order that looks good on its face, especially if the concern relates to local court procedures. Courts can take care of themeselves, and if a plan qualifies an order that comes out of some state court irregularity, it is up to the participant or alternate payee to object, explain to the plan, and, take corrective action. The plan should accommodate contests, but is not the arbiter of state court matters.

[mbozek]

H & W obtain divorce decree in State X, awarding W part of H's benefits in Plan in State Y.

Rather than obtain QDRO from State X's divorce court, W has the State X divorce decree 'domesticated' in State Y, where the Plan and Plan Administrator are. Pursuant to the divorce decree, the State Y judge then enters the QDRO.

Is this acceptable? Should the Plan Administrator insist on a QDRO be issued by the State X divorce judge?

Under Article IV of the Constitution each state must give full faith and credit to judicial proceedings of every other state. Domestication is nothing more than state Y accepting the divorce decree of State X, which is a court order or judgment, as its own as the Constitution requires which is the prerequisite to issuing a DRO.