Divorce Dex.com: Domestic Relations Order (DRO)

Definition Domestic Relations Order (DRO) - a court order used to allocate the interests of divorced people in nonqualified pensions, usually state and municipal, as compared to private retirement accounts, such as 401(k)s.

Application in Divorce The term qualified means that the retirement account is covered under ERISA, which is the federal law dealing with pension benefits.

Compare Qualified Domestic Relations Order (QDRO).

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Questions & Answers

What is a Domestic Relations Order (DRO)?

A DRO is the same set of instructions as a QDRO except it is written against a plan that is not qualified under certain federal statutes. DROs are typically written against governmental plans.

Contributed on 9/19/2007 by: Pension Appraisers, Inc.Allentown, PA[Total Submissions: 12]

Category: Retirement Accounts (Applicable in All States)

Are employee stock options divided using a DRO?

Usually. Most public corporations have their own template DRO used to divide employee stock options, restricted stock and deferred compensation plans.

Contributed on 4/27/2009 by: Glazer Financial AdvisorsSan Deigo, CA[Total Submissions: 1]

Category: Divorce Documents (Applicable in California)

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Purpose of a Domestic Relations Order
DROs and QDROs both protect nonworking spouses. A Qualified Domestic Order (QDRO) is the legal way to distribute benefits from a qualified plan such as a 401(k). It is the only legal way for a former spouse to get money from a qualified plan.

Contributed on 7/3/2007 by: DivorceDex.com Staff
Category: Retirement Accounts (Applicable in All States)
QDRO
It is very important that the QDRO drafting process be initiated and completed as soon as possible in the divorce process, since a delay in getting the QDRO filed and accepted by the plan administrator could result in a loss of benefits by the non-participant spouse if the participant spouse dies, retires, quits, is terminated, etc. prior to the implementation of the QDRO

Contributed on 10/23/2009 by: QDRO USADenver, FL[Total Submissions: 1]
Category: Retirement Accounts (Applicable in All States)

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Additional Resources

Pension Appraisers, Inc.

Specializes in valuing and distributing retirement benefits in cases of divorce. Established in 1989, Pension Appraisers, Inc. has valued over 15,000 defined benefit and defined contribution pension plans, and assisted attorneys and individuals in drafting over 10,000 Qualified Domestic Relations Orders (QDRO) and Domestic Relations Orders (DRO).

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#209: Long distance phone bills should be addressed and often shared by both parents if the estranged parent lives outside the child's area code. All situations are unique, so having this in writing is often recommended.

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