When you’re going through a divorce or perhaps nearing its finalization, you may rely on your soon-to-be ex’s retirement benefits to start life anew. Probably to get a new home, go back to school, or travel.

However, you’re likely to wonder how long the process takes. After all, you want to get over with the process as soon as possible, right? This article will give you a detailed overview of what to expect in the process and how long it might take.

How long does a QDRO take?

There is no one right answer to this question since a lot of factors come into play such as the complexities of the case, and the assets to be shared. On average, it takes two months from start to finish to obtain a QDRO. Other times, two years depending on the circumstances surrounding your situation.

If you work with an experienced attorney during your divorce process, your attorney will take crucial steps necessary to draft a QDRO, while avoiding common mistakes that could delay your order.

When your attorney follows the right processes, you’re likely to get it over with in less than two to three months. However, some divorce attorneys fail to follow the due process, thinking that one needs to finalize the divorce before obtaining a QDRO which isn’t true.

How long does it take to process a QDRO?

Process, in this case, refers to the initial steps taken such as drafting, obtaining approval from your soon-to-be ex, and getting the plan’s ‘pre-approval’ of the QDRO. Your attorney will help submit the order to the judge to be signed, and finally to the Plan Administrator who now deems the order ‘qualified’.

This process is likely to take two to three months depending on your attorney and the nature of your divorce and retirement accounts.

How long does it take to receive funds from a QDRO?

It depends on the type of retirement plan to be divided. For a defined contribution plan such as a 401(k), 457, 403(b), or an IRA, it takes an average of two to three weeks to get the funds transferred to the account of the alternate payee.

However, if it’s a defined benefit plan such as pension or cash balance plan, they are not available for transfer until the participant reaches ‘the earliest retirement age’ as stipulated by the plan – typically 62 years.

A lot of factors influence how long a QDRO takes, and it is crucial to work closely with an attorney with years of experience for the best outcome. If you have questions about how soon you or your soon-to-be-ex will receive their benefits under QDRO, we’ve got you covered. Feel free to give us a call or fill out our contact form to book an appointment.