What Does a Qualified Domestic Relations Order (QDRO) Mean for Divorce in Arizona?

A Qualified Domestic Relations Order (QDRO) is a court order entered in a divorce, separation, or child support lawsuit. Its purpose is to ensure that a portion of a spouse’s retirement accounts is used for child support, spousal support, or equitable marital property division.

A retirement plan administrator must comply with a QDRO. Seek representation from an experienced Arizona family law attorney for help with this process.

What Is the Purpose of a QDRO?

According to the U.S. Department of Labor, a QDRO establishes someone as an “alternate payee” who may receive benefits under someone else’s retirement account or plan. They may receive a lump sum or periodic payments, or they may choose to invest their share of a spouse’s retirement account.

For example, maybe one spouse funds a retirement account during a marriage. Perhaps the other doesn’t have an account because they’re a full-time parent or student. The percentage of the retirement account funded during marriage is marital property in Arizona. It’s subject to division between the spouses in a divorce. A court may issue a QDRO ordering a retirement account administrator to distribute benefits accordingly. After a divorce, the spouse whose name is on the retirement account may have to split its benefits with their ex.

A court may issue a QDRO even when both spouses have retirement accounts. The QDRO can ensure that retirement assets are split evenly.

Are There Benefits to a QDRO?

A QDRO can offer several potential benefits. It’s particularly helpful when a married couple has children. Benefits of a QDRO are:

• Ensuring both spouses receive assets they’re entitled to
• Preventing the party with the retirement account from disposing of their benefits to keep a spouse from receiving any
• Splitting retirement funds without incurring taxes
• Helping to fund child support and spousal maintenance

If you’re planning to divorce in Arizona, consider what types of retirement accounts you both have now. Start the process of obtaining a QDRO early in the divorce proceedings and have your attorney draft the final document.

What If We Have a Prenuptial or Postnuptial Agreement?

A retirement account may not be subject to division under Arizona divorce laws in some circumstances. For example, perhaps you entered into a prenuptial or postnuptial agreement.

The agreement may state one or both spouses agree to waive their rights to the other’s retirement benefits in the event of a divorce. If the agreement is valid and legally enforceable, a QDRO may not override or nullify it.

There are various reasons a prenuptial or postnuptial agreement might not be enforceable. Even if you entered into such an agreement, you might still have the option of using a QDRO to divide retirement account benefits and assets. Review your case with an Arizona family law attorney for more information.

Can the Money I Contributed to My Retirement Before Getting Married Be Divided by the QDRO?

In most cases, contributions made to a retirement account only become marital property once a marriage begins. Contributions made before the marriage are not subject to division when it ends.

How Long Can It Take to Get My Money from a QDRO?

The administrator of a retirement account will review the QDRO to understand its terms. The QDRO will provide instructions regarding how the administrator is to divide retirement account benefits and assets between spouses.

Various factors can impact how long it may take to complete the QDRO. This can be the most time-consuming part of the process. Those factors can include:

• Whether you need to contest a prenuptial or postnuptial agreement
• The complexity of determining what portion of a retirement account qualifies as marital property
• How cooperative spouses are throughout the process
• How long it takes to collect all the relevant retirement plan information
• Whether the plan administrator needs any clarification after receiving the QDRO
• How many retirement plans are subject to division
• What types of retirement plans are subject to division

In some instances, the process of drafting, finalizing, and approving a QDRO takes a few months. In rare cases, it can take years.

How a plan administrator provides an alternate payee with funds after receiving a QDRO can vary on a case-by-case basis. Typically, it will take three to five weeks to receive funds after final approval of a QDRO. In some cases, the funds could be immediately available.

However, it’s possible that a plan administrator might delay processing a QDRO or complying with its terms. This is one of the many reasons it helps to have representation from a family law attorney throughout these processes. An attorney can help you ensure the language of a QDRO is clear enough to guard against delays. They may also provide assistance if it appears anyone involved isn’t complying with a QDRO.

Is an Attorney Necessary to Get a QDRO?

You are not legally required to have an attorney to get a QDRO, but you should have one. An Arizona divorce attorney can help you ensure a QDRO is thorough and enforceable. They can also assist you by:

• Gathering the necessary retirement account information
• Completing any paperwork they may need to submit to plan administrators
• Determining a fair portion of a spouse’s retirement accounts and plans
• Advocating for your interests if it appears anyone is neglecting the QDRO or trying to delay the process

It’s important to start the QDRO process as soon as possible. You don’t have to wait until the divorce is final to do so.

Contact an Arizona Divorce Lawyer

Obtaining a QDRO may be just one of many tasks you need to complete when divorcing a spouse in Arizona. Depending on factors such as whether you have children and how long your marriage lasted, the divorce process can be complex and emotionally draining.

Luckily, it’s not one you need to handle alone. At Mushkatel, Robbins & Becker, PLLC, an Arizona divorce lawyer is available to help you navigate this process. Get started today by contacting us online or calling us for a free case review.

Visit Our Arizona Divorce Law Offices

About the Author

Zachary Mushkatel

Zachary Mushkatel discovered his affinity for the law by chance. As a political science major at the University of Arizona, he first aspired to become a professor. But an unexpected invitation to participate on a mock trial team at the university encouraged him to turn his competitive spirit and drive…