Austin, Texas divorce law attorney, Tim Whitten talks about a Qualified Domestic Relations Order.
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A Qualified Domestic Relations Order, which is also commonly referred to as QDRO, that’s the acronym for it, is a court order that essentially divides a retirement account, and you can have multiple QDRO’s within one case, depending on how many retirement plans there are, and it can divided 50/50. It could be divided 40/60, just whatever percentage the parties agree on or whatever the court orders, and the purpose of it is to allow the account to be divided without incurring interest, without incurring taxes and penalties and it’s as simple as that. The actual creation of the order and doing it can be complicated at times. Some of them are more routine, but some are more complicated, but in a broad sense, that’s what the order accomplishes.