How do retirement accounts get divided in a divorce?
IRAs are divided using a process known as “transfer incident to divorce,” while 403(b) and qualified plans, such as a 401(k), are split under the “Qualified Domestic Relations Order” (QDRO). Many courts confuse this distinction by labeling both types of divisions as QDROs.
Is there a statute of limitations for filing a QDRO?
A judgment of divorce requires that a QDRO be filed in order to receive the benefits from a retirement plan associated with the divorce. This is subject to the ten year statute of limitations as outlined by MCL 600.5809, which states: For normal purposes this would begin the accrual period on the QDRO.
Do I need an attorney to file a QDRO?
Once the QDRO is pre-approved by the plan administrator, you and your spouse must sign the QDRO. Submit the QDRO with the court to have the judge sign the order. Despite common belief, you do not need to hire an attorney to file a QDRO after divorce in California.