Most people will have their QDRO’s prepared through their attorney after their divorce is settled and final. Not Mr. & Mrs. X. Neither one of them sought to have their attorneys prepare the order, and by all accounts, it appeared that their respective attorneys didn’t urge them to complete this very important step toward the conclusion of their financial disentanglements. What first appeared to be a simple and straightforward QDRO, turned into a battle against time. They have divorced some 20 years ago and Mr. X never pursued filing a QDRO as the Alternate Payee against his ex-wife’s pension benefits! This could have resulted in significant losses and protracted litigation. The risk factors in this case were completely avoidable although very real. If Mr. X outlived Mrs. X without the QDRO in place, he could lose the benefit. If Mrs. X divorced a second time and the pension was at issue, litigation could have ensued over the naming of survivorship benefits.

Because both Mr. & Mr. X was fast approaching retirement age, Mr. X finally took action and through his attorney, NorthStar QDRO was hired to complete the QDRO. Knowing that time was of the essence, the draft QDRO was immediately prepared, sent to the attorney for approval, submitted to the plan and 3 weeks later we had Plan approval. Crisis averted! Bottom line is that clients need to be aware of their financial picture after the divorce and attorneys need to be mindful that clients sometimes need handholding after the divorce to protect themselves even after the ink is dry.