01/07/2026
Most people dividing retirement funds in divorce don’t realize there’s a hidden extra step.
And if you skip it, you could face taxes and penalties you never expected.
A Qualified Domestic Relations Order, or QDRO, is issued after your divorce judgment, and it is what legally allows you to divide a 401(k) or pension without triggering early withdrawal fees.
Here’s what most people don’t know:
– Your attorney or mediator usually can’t prepare this for you
– You’ll likely need a specialist, like a QDRO attorney or CPA
– It must be filed separately, only after your judgment is finalized
– It’s what lets the non employee spouse roll their share into a rollover IRA safely
A bit more paperwork, yes, but absolutely worth avoiding unnecessary taxes and keeping your retirement intact.
When you hear the word QDRO, remember this 👉 it’s the step that protects both spouses financially for the long term. 💫