How Are Retirement Benefits Divided?

For many couples, retirement benefits are among the most valuable assets accumulated during the marriage. However, there are many retirement plans and assets which are subject to varying mechanisms of division. Those mechanisms generally involve the drafting and entry of a qualifying court order. The qualifying order provides the legal authority for many employer-provided retirement plans to divide those benefits after divorce.

The qualifying order used to implement the division of a retirement benefit varies in name, content and  may be referred to as a Qualified Domestic Relations Order (QDRO) commonly used for 401(k) or Thrift Savings Plans (TSPs) which can also be divided by a Retirement Benefits court Order (RBCO) or 403(b) plans and traditional pensions, and Court Order Acceptable for Processing (COAP) commonly used for U.S. Federal pensions plans or Military Pension Division Order (MPDO) or a Military Retired Pay Division Order for pensions from military service. 

Why Do I Need a Qualifying Order?

While a divorce decree or property settlement agreement