There is often a lot to ponder on after a divorce, and one of them is your Qualified Domestic Relations Order which determines how your retirement plans will be distributed. At this stage, you have a lot of questions brewing in your mind, such as the responsibilities of both parties, rights, or obligations as the case may be.

Know that you’re not alone. Some of the questions you might have will be expanded on this page, giving you insight into what to expect in this new terrain of life.

1. After QDRO completion, what rights does my ex have?

Your former spouse, or better put, ex, has the right to receive plan information and materials to know what benefits you’ll be receiving. This helps in making informed decisions on how he or she will love to receive their benefits.

2. How long does it take to hear from the plan after filing?

Once the Plan Administrator has approved the QDRO, the former spouse can expect to receive the plan information or benefits in 30 to 60 days. However, since plans often come with different terms and policies, there is no right answer to this question.

3. When can the former spouse start a pension benefit with a QDRO?

If it’s a defined contribution plan such as a 401k, then funds are sent as soon as administratively possible. In a case of a defined benefit plan where the plan participant is yet to retire, the former spouse can decide to start the pension generally when the participant is at least the age of 55. 

4. After the order is sent to the plan administrator, what other responsibilities does a former spouse have?

The former spouse is mandated to notify the plan of any address changes to allow you receive updated materials and information concerning your benefits. If the plan allows your spouse the right to designate a beneficiary, the spouse must get in touch with the plan immediately once the QDRO is sent to the plan to complete the proper beneficiary designation forms.

5. What will happen if a former spouse does not update the beneficiary forms?

The plan participant is required to review the participant’s beneficiary designation and to also make necessary changes by completing a new beneficiary designation form. According to the U.S Supreme Court, unless the participant changes the beneficiary form with the plan, the plan is to distribute benefits to the former spouse.

We hope this article was able to break down some of your most important questions regarding QDRO. Need further guidance or perhaps need help to file a QDRO? Go ahead and give us a call, or fill our contact form to begin.