It’s common to hear a QDRO referred to as a Quadro, but it’s important to note that they both refer to the same thing. A QDRO is a Qualified Domestic Relations Order, which is a legal document that outlines how to divide a retirement account between two parties without any tax implications.
During a divorce, it’s not uncommon for retirement accounts, such as a 401(k), to be one of the most significant assets to divide. A QDRO allows for a pre-tax distribution of the retirement account without any tax implications to either party involved.
The process of obtaining a QDRO typically involves going through the court system, where a judge will review the QDRO to ensure that it complies with all necessary legal requirements. Once the QDRO is approved by the court, it is then sent to the Plan Administrator of the retirement account, who will then divide the account as specified in the QDRO.
It’s important to note that a QDRO is not an automatic process and must be specifically ordered by the court. Therefore, it’s crucial to work with a qualified professional, such as a QDRO specialist or attorney, to ensure that the process is completed correctly and efficiently. At Laguna Legal, our team of QDRO specialists can provide the necessary support and expertise to help you navigate the QDRO process with ease.