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Why is it important to enter a QDRO prior to Divorce?

If a QDRO is to be entered against a Participant's Defined Benefit Pension Plan; and an award of survivor benefits or a separate interest is to be awarded the failure to have a QDRO in place prior to divorce is a dangerous position. Upon divorce with no QDRO in place, makes a prospective alternate payee a former spouse. Hence, if the Participant dies with no QDRO in place may cause a total loss of benefits to that prospective alternate payee. Many more variations of this scenario are at play. Please contact Troyainc.com to discuss your specific fact pattern.

Categories: QDRO