Questions and Answers
Does there need to be a Qualified Domestic Relations Order (QDRO) to divide an IRA due to a divorce? Or, is a QDRO only necessary with regard to defined benefit and defined contribution plans?
A QDRO is not required for division of an IRA. In the event of a divorce, a court will accept a Domestic Relations Order, which dictates the division of assets. This legal document can be used to initiate a transfer of IRA assets to a former spouse due to divorce. Qualified plans, such as a 401(k), require the use of a Qualified Domestic Relations Order (QDRO) to divide the qualified plan assets due to a divorce.
A financial organization should seek advice from its compliance officer and legal counsel to determine its policy regarding documentation when an individual initiates an IRA transfer due to divorce.
